Subject:
Introduction to Accounting
Date: 10 March 2015
Class Level: Second Form (1C) Topic: Financial Statements Subtopic:
Understanding a Balance Sheet
Time/Date:
40 minutes 10!0"!15
References:
Fran# $% & 'oinson S% (200) *rinci+les o, Accounts ,or the Cariean 5th -dition. .ongman C/C (200) *rinci+les o, Accounts Sllaus Cariean -3amination Council Balance Sheet% (n%d%)% 'etrieed March 1" 2015 ,rom htt+!!666%collegecram%com!stud!accounting!,inancial7statements!alance7sheet!
Previous Knowledge:
Students hae learned ho6 to identi, assets liailities and ca+ital (o6ner8s e9uit) ,urthermore ho6 to rea# them into their di,,erent sugrou+s and accounts% • • •
Assets (,i3ed assets current assets) .iailities (current liailities long7term liailities) Ca+ital (:6ner8s -9uit)
bjectives: ;hrough oseration and discussion students 6ill e ale to
1) Calculate Calculate ;ota ;otall Assets Assets .iailities .iailities and Ca+ital Ca+ital 2) -3amine -3amine accounts accounts that that 6ould 6ould e +laced in a Balance Balance Sheet ") Construct Construct a sim+le sim+le alance sheet 6hen 6hen gien gien the names names o, accounts accounts Concept:
A alance sheet sho6s the assets liailities and ca+ital ,or a usiness on a gien da% ;his usiness document is one o, the ma
S!ills: "# 'ecogni=e the di,,erent accounts
2) >rou+ accounts in their +lace in a alance sheet ") Calculate using the accounting e9uation 4) *re+are a Balance Sheet $ttitudes:
1) $or# coo+eratiel 2) *artici+ate in class actiit ") ?eelo+ a6areness ,or the im+ortance o, accurac %aterials: chart adhesie ta+e lael stri+s sho+ +a+ers mar#ers alance sheet tem+late &ntroduction:
1) ;eacher 6ill egin the class 6ith an ice7rea#er giing t6o accounting
1) Students alread #no6ing ho6 to classi, the di,,erent accounts name teacher 6ill assign a numer alue to each account and 6ill as# students to calculate the total alue o, each grou+% 2) Using the structure o, an accounting e9uation (Assets .iailities Ca+ital) students 6ill ,ind use the math conce+t o, sustitution to ,ind a missing ariale% ") Using the accounting e9uation +lace assets on the le,t side and then +lace liailities and o6ners e9uit on the right side% According to the e9uation the le,t side o, the alance sheet 6ould then hae to e9ual the right side o, the alance sheet% (@ence the name D BalanceD Sheet%)
4) ?iide class into grou+s o, 48s and each +erson 6ill e assigned a role in each grou+% *roiding di,,erent accounts the grou+ 6ill hae to calculate the di,,erent +arts o, the alance sheet and lael them +ro+erl on a sho+ +a+er% 1st +erson Calculate Assets 2nd +erson Calculate .iailities "rd +erson Calculate Ca+ital 4th +erson +re+are the alance sheet ,ormat on the sho+ +a+er%
Example Assets
Liabilities
Cash Equipment Furniture
$1,500.00 Bank Loan 2,500.00 500.00
Total Liabilities
$3,000.00 3,000.00
Owner's Equity
Capital Total Assets
_______ $4,500.00 =======
Total L & O.E.
$1,500.00 _______ $4,500.00 =======
Closure: through 9uestioning students 6ill share 6ith the class 6hat the ha e learnt% Conclusion: -ach student 6ill e gien accounts 6ith a numer alue and the 6ill hae to +re+are a alance sheet on their e3ercise oo#s%
'(tended $ctivit): Student 6ill e gien the ,ollo6ing assignment to +ractice on creating a alance sheet
;he Ee6 $estrac Com+an in :range $al# ;o6n o6ned >u Alrecht had the ,ollo6ing assets and liailities on March "1 2014% *re+are a alance sheet ,or the com+an as o, that date% •
Ban# 1GH%00
•
;ast Beerages (detor) 50%00
•
Food @aen (detor) 400%00
•
Metro mall (detor) 12"5%00
•
Su++lies G50%00
•
Furniture and -9ui+ment 5G40%00
•
;ruc#s "5000%00
•
.and 50000%00
•
Building 140000%00
•
@ousehold Finance Com+an (creditor) 1H"45%00
•
>eneral ;rading Com+an (creditor) 2"5%00
•
.ightning -lectronics (creditor) ""G%00
•
Ban# .oan 10000%00
•
Mortgage *aale 5000%00
'valuation: Lesson Reflection: Strengt*s Teac*er:+
Students:+
$reas of &mprovement: Teac*er:+
Students:+
$ccounting ,o!es The clerk walks into the boss's office and says, "The auditors have just left, sir.""Have they finished checking the books?", asks the boss. "Very thoroughly," is the reply. "ell, what did they say", says the boss. "They want !# to keep $uiet."
% business&an was interviewing job applications for the position of &anager of a large division. He $uickly devised a test for choosing the &ost suitable candidate. He si&ply asked each applicant this $uestion, "hat is two plus two?" The first interviewee was a journalist. His answer was, "Twentytwo". The second was a social worker. (he said, ") don't know the answer but )'& very glad that we had the opportunity to discuss it." The third applicant was an engineer. He pulled out a slide rule and ca&e up with an answer "so&ewhere between *.+++ and .--!." e/t ca&e an attorney. He stated, "in the case of 0enkins vs. the 1epart&ent of the Treasury, two plus two was proven to be four." 2inally, the business&an interviewed an accountant. hen he asked hi& what two plus two was, the accountant got up fro& his chair, went over to the door, closed it, ca&e back and sat down. 3eaning across the desk, he said in a low voice, "How &uch do you want it to be?" He got the job.
%n accountant dies and goes to heaven 4no, that's not the joke5. (t. 6eter, of course, is there, looking through the files and asking a few $uick $uestions. "hat sort of accountant were you?" "7h, ) was a 86%", was the reply. "a&e?" asks (t. 6ete. The accountant gives his na&e and (t. 6eter finds his file. "7h yes, we've been e/pecting you. 9ou've reached your allotted ti&e span." The accountant says, ") don't get it. How can that be? )'& only : years old." 6ete looks again at the file and says, "ell, that's i&possible." "hy do you say that?" asks the accountant. "ell," says (t. 6eter, "we've been looking over your ti&e sheets and the hours you've charged your clients. ;y our reckoning, you &ust be at least+* years old<"
%n accountant and a lawyer were laying on a beach in Hawaii sipping &ai tai's. The lawyer started telling the accountant how he ca&e to be there. " ) had this downtown property in =e&phis that caught fire and after the insurance paid off, ) ca&e here." The accountant said, ") had a downtown property, too, in =ia&i. )t got flooded so here ) a& with the insurance proceeds." The lawyer took another sip of his &ai tai, and then asked in a pu>>led voice, "How do you start a flood?"
