Account Third Term Scheme of Work and Lesson Notes for Senior Secondary School One( SSS 1)
THIRD TERM SCHEME OF WORK FOR 2019/2020 SESSION SS1
- Preparation of Bank Reconciliation Statement (credit balance)
- Preparation of bank Reconciliation Statement (Debit balance/ overdraft)
- End of the year adjustment in p&l account accruals and payment
- Provision for bad debt, bad debt, provision for discount allowed and received
- Bad debts recovered work exercise
- Depreciation of fixed assets
- Straight line and reducing balance method schedule, advantages and disadvantages it each method, ledger
- Treatment of depreciation in pal and balance sheet
- Preparation of final Account
- Revision
- Examination
LESSON NOTE FOR THE FIRST WEEK ENDING 27TH APRIL 2020
CLASS- SS1
DURATION- 40 MIP
NO OF PERIOD- 4
TOPIC- PREPARATION OF BANK RECONCILIATION STATEMENT
SUB-TOPIC- Debit cash balance and credit bank balance
OBJECTIVE: The student should be able to:
Prepare bank reconciliation starting from the bank balance
Prepare bank reconciliation starting from the cash book balance
Prepare bank reconciliation using the adjusted cash book method
INSTRUCTIONAL MATERIALS- white board and marker
REFERENCE MATERIAL- simplified and Amplified book-keeping and Accounting by Longe Femi
CONTENT:
FORMAT STARTING WITH THE BANK STATEMENT BALANCE OR THE CASH BOOK BALANCE
ILLUSTRATION:
On 31st December 2000, the bank statement of Bola Ige showed a credit balance of N20, 489. A comparison with the cash book revealed the following cheque drawn but unpresented 316,872 Amount paid into the bank but not
Yet credited by the bank 72,342
Standing order 3,564
Interest on bank deposit not
Yet recorded in cash book 202049
Bank charges 1358
Dishonoured cheque 12020
Prepare a bank reconciliation statement showing the cash book balance on 31st December, 2000
Solution:
Balance as par bank statement 20,489
Add uncredited cheque 72,342
Standing order 3564
Bank charger 1358
Dishonoured cheque 12,02020 89282
109771
Less unpresented cheque 316,872
Balance as par cash book (207101)
Presentation:
Step 1. The teacher revises the previous lessons learnt before the holiday
Step 2. Introduces the new topic
Step 3. Explanation of salient point
Step 4. Class illustration
Step 5. General class discussion
Evaluation:
Simplified and Amplified page 119/120
Exc. 1x and 3x
Assignment: Simplified and Amplified 5x and 10x
Conclusion: the teacher summarizes the lesson and gives students note on the topic
LESSON NOTE FOR SECOND WEEK ENDING
CLASS – SS1
DURATION – 40 M/P
Number of period – 4
TOPIC – BANK RECONCILIATION
SUB-TOPIC – ADJUSTED CASH BOOK METHOD
OBJECTIVES – The students are expected to:
- List and explain the content of the adjusted cash book
- Post correctly items to the debit and credit side of the adjusted cash book
- List and explain the item that will reflect only in the bank reconciliation statement.
- Prepare an adjusted cash book and a bank statement starting with debit balance and credit balance as well as credit balance and overdraft in the cash book and bank statement respectively.
PREVIOUS KNOWLEDGE – The student have been taught how to prepare a bank reconciliation using other methods.
REFERENCE MATERIALS – Simplified and Amplified Book keeping and Accounting for SSS1 – 3 BY Femi Longe.
INSTRUCTIONAL MATERIALS – White board and marker
CONTENT:
FORMAT OF AN ADJUSTED CASH BOOK
ADJUSTED CASH BOOK
| Balance c/d x Credit transfer x Under cast of receipt x Overcast of payment x | Dishonour cheque x Bank charges x Interest on bank deposited (paid) x Direct debit x Standing order x Bal c/d x |
| x | x |
Bank Reconciliation statement
N
Balance as per adjusted cash book xx
Add unpresented cheque x
xx
Less uncredited cheque (x)
Balance as per Bank Statement xx
Presentation:
Step i: Revision of the last topic
Step ii: Introduction of the new topic
Step iii: Class illustration
Step iv: Explanation of salient points
Step v: General class discussion
Assessment
Simplified and Amplified page 120 EX 1X
Assignment
Amplified page 124/125 EXC 6 and 7
Conclusion: The teacher summarizes the lesson and give the students note on the topic.
LESSON NOTE FOR THE THIRD WEEK ENDING 11-05-2020
CLASS- SS1
DURATION- 40MIP
NUMBER OF PERIOD- 4
TOPIC- END OF THE YEAR ASSIGNMENT
SUB-TOPIC- ACCRUALS AND PREPAYMENT
OBJECTIVE- The student should be able to:
- State the meaning and differences between accruals and prepayments
- State the effect of accruals and prepayments on the profit and loss account
- State the effect on the balance sheet
PREVIOUS KNOWLEDGE: The students are used to credit purchases and advance payment during transaction.
INSTRUCTIONAL MATERIAL- White board and marker
REFERENCE MATERIAL- Simplified and Amplified book-keeping and Accounting by Femi Longe, Essential financial accounting by R.A Kazeem et al.
CONTENT:
Accrued expenses/Accruals: These are expenses due but which are not yet paid for as at the balance sheet date. They can also be regarded as the value of benefits already enjoyed but not yet paid for as at the balance sheet date.
In the final account accruals are treated as follows.
Profit and Loss Account
| N Rent x x Add accrued rent x xx | N Gross profit xx |
Balance sheet
| Current liabilities Accrued rent x | Current Asset |
Accrued Income: These are money due but not yet received as at trial balance date. They can also be regarded is the value of obligation already fulfilled but for which payment is yet to be received. In the final account accrued income will be treated as follows:
Profit and Loss Account
| N | N Gross profit x Accrued income x |
Balance sheet
| Current Assets Accrued income x |
Prepared expenses/prepayments: These are expenses which are not yet due but have been paid for as at the balance sheet date. In other words: they are advance payment for expenses. Treatment/Entry in final account.
Profit and Loss
| Rent x Less prepaid (x) x |
Balance sheet
| Current Assets Prepaid rent x |
Income received in advanced: These are incomes not yet due but which had already been received as at balance sheet date.
Treatment or entries
Profit and Loss Account
| N Gross profit x Less income in advance (x) x |
Balance sheet
| N Current liabilities Income in advance x | N |
Presentation:
Step 1: Teacher introduces the lesson
Step 2: He revises the previous lesson
Step 3: He explains the meaning of accruals and prepayment.
Step 4: General class discussion.
Assessment
Define the following terms:
- Accrued income (ii) Accrued Expenses (iii) prepaid expenses (iv) Prepaid income
Assignment
- What are the necessary treatment given to:
- Accrued expenses
- Accrued income
- Prepaid expenses
- Prepaid income
In the balance sheet and in the profit and loss account.
Conclusion: The teacher summarizes the lesson and gives the students note on the lesson taught.
LESSON NOTE FOR THE FOURTH WEEK ENDING 20-05-2020
CLASS – SS1
DURATION – 40 M/P
NUMBER OF PERIOD – 4
TOPIC – END OF THE YEAR ADJUSTMENT
SUB-TOPIC – Bad debt, provision for bad debt, discount allowed and discount received.
OBJECTIVES – The students should be able to:
- State the meaning and condition necessary for bad debt and provision for bad debt.
- State the meaning and condition necessary for discount
- State the treatment of bad debt provision for bad debt and discounts in the final account.
PREVIOUS KNOWLEDGE – The students have been taught about accruals and prepayment in the previous date.
INSTRUCTIONAL MATERIALS – White board and marker
REFERENCE MATERIAL – Essential financial Accounting for senior secondary school by R.A. Ibrahim and R.A. Kazeem.
CONTENT:
Bad debt can be defined as debts that cannot be recovered i.e irrecoverable debt.
Provision for bad and doubtful debt is an estimated amount set aside for doubtful debts which cannot be accurately calculated.
Discount allowed is the allowance granted to the customers on the invoice price.
Discount received is the allowance granted by the supplier to a firm on the invoice price of goods.
Treatment:
Bad debt, increase in provision for bad debt, and discount allowed are debited to the profit and loss Account while discount received and decrease in provision is credited to the profit and loss account.
Presentation:
Step 1: The teacher review the last topic
Step 2: Introduces the new topic
Step 3: Gives detail explanation on the new topic
Step 4: General class discussion
Assessment:
- Write short note on the following
(i) Bad debt (ii) Provision for bad debt (iii) discount allowed (iv) discount received (v) why is it necessary for an organization to make provision for bad debt.
Assignment
- State the treatment of the following in the final account.
- Increase in provision
- Decrease in provision
- Bad debt
- Discount allowed
- Discount received
Conclusion: The teacher summarizes the lesson and gives students note.
LESSON NOTE FOR THE FIFTH WEEK ENDING 25-05-2020
CLASS – SS1
DURATION – 40 M/P
NUMBER OF PERIOD – 4
TOPIC – DEPRECIATION
OBJECTIVES – The students should be able to:
- Define the term depreciation
- State the reasons and causes of depreciation
- List and explain the method of calculating depreciation.
PREVIOUS KNOWLEDGE – The students are familiar with wear and tear of assets such as clothes.
INSTRUCTIONAL MATERIAL – Classroom Assets, such as fans, A.C, Chair etc.
REFERENCE MATERIAL – Essential financial Accounting for Senior Secondary Accounting for Senior Secondary School by O.A. Longe and R.A. Kazeem.
CONTENT:
Depreciation can be defined as the fall or decrease in the Economic service potential of an asset as a result of wear, tear, usage, obsolescence and inadequacy.
FEATURES OF DEPRECIATION
- it is a reduction in the value of fixed Assets
- It is a non – cash expense. It is an expenses but it does not involve actual cash flow.
- It is continuous until the end of the asset useful life
- It is a reduction in the Economic life of an asset.
CAUSES OF DEPRECIATION
- Wear and tear
- Obsolescence
- Passage of time
- Depletion
- Inadequacy
REASONS FOR DEPRECIATION
- It serves as tax deduction
- It present overstating the value of assets
- It provides replacement find for assets
- It spread its cost 4 assets over a number of years
- It helps to ascertain the true profit because it is deducted from the gross profit
ELEMENT OF DEPRECIATION
- Original cost of assets
- Salvage/ residual value
- Estimated useful life
METHOD OF DEPRECIATION
- Straight line method
- Reducing balancing method
- Depletion method
- Revaluation method
- Machine hour rate method
- Sinking find method
- Annuity method
- Sum of the year digit
Presentation:
Step 1. The teacher revises the previous lesson
Step 2. Introduces the new lesson
Step 3. Gives detail explanation on the new topic
Step 4. General class discussion
Assignment:
- Write a short note on the following
- Depreciation
- Salvage value
- Obsolescence
- What are the reason for changing depreciation
Assignment:
State and explain at least five method of charging depreciation
Conclusion: the teacher summarizes the lesson and gives the student note
LESSON NOTE FOR THE SIXTH WEEK ENDING 01-06-2020
CLASS- SS1
DURATION –40 MIP
NUMBER OF PERIOD –4
TOPIC – DEPRECIATION OF FIXED ASSETS
SUB-TOPIC- STRAIGHT LINE AND REDUCING BALANCING METHOD
OBJECTIVES: The students are expected to:
- State the meaning of straight line and reducing balancing method of depreciation of asset
- State the formula and its application to the two method
- Prepare the ledger account for each method
PREVIOUS KNOWLEDGE: The student had been introduced to depreciation in the previous lesson
INSTRUCTIONAL MATERIALS: White board and marker
REFERENCE MATERIALS: Essential financial accounting for SS1-2 by O.A Longe and R.A Kazeem
Content:
Straight line method of depreciation make use of an equal amount as depreciation for each year. Under this method an equal proportion of the cost of an asset is allowed to each period.
The formula to be adapted is
Example: The cost of a machine is N40,000. It is expected to last for 4 yrs. Use the straight line method to prepare the depreciation schedule. If the residual value is N4,000 by
Depreciation:
=
= 1,500
Schedule
| Yr 1 2 3 4 | Cost 10,000 10,000 10,000 10,000 | Depr 1500 1500 1500 1500 | Accumulated 1500 3000 4500 6000 | Net book value 8500 7000 5500 4000 |
Reducing balancing method this is also known as the diminishing balance method, by their method, a fixed percentage is written off the diminishing balance it the assets yearly. The total depreciation is spread over the anticipated useful life of the asset by annual instatement of diminishing amount of depreciation is charged at the early years and smaller amount in the later years.
Depreciation rate is computed using this formula
=
Where n= estimated useful life
e.g A motor cost N6400 in 1991 it will be kept for 5 yrs and then sold at a residual value of N200. Calculate the depreciation rate:
=
=
= 1-
= OR 0.5 = 50%
Yearly: depreciation
Yr N
1 cost 6400
Depr. 50% x 6400 3200
2 cost 3200
Depr. 50% x 3200 1600
3 cost 1600
Depr. 50% x 3200 800
4 cost 800
Depr 400
5 cost 400
Depr 200
NBV. 200
Presentation:
Step 1. The teacher revises the previous lesson
Step 2. Introduces the new topic
Step 3. Illustration the lesson with a working example
Step 4. General class discussion
Assessment:
- Differentiate between the straight line method and the reducing balancing method 4 depreciation
- State the formula applicable to calculating depreciation way
- Straight line method
- Reducing balancing method
Assignment: A machine cost N12,800 it will be used for 5 years and then sold at a scrap at N400. Calculate the depreciation of each year using
- Straight line method
- The reducing balancing method
CONCLUSION:
The teacher summarizes the lesson and gives the students note
LESSON NOTE FOR THE SEVENTH WEEK ENDING 08-06-2020
CLASS – SS1
DURATION – 40 MIP
NO OF PERIOD – 4
TOPIC – DEPRECIATION
SUB- TOPIC- WORKING EXERCISE
OBJECTIVES: The student should be able to:
- Solve question on depreciation using the old and new accounting method
- State the effect of the new method on profit and loss account
PREVIOUS KNOWLEDGE: The students had been taught about the meaning and method of finding depreciation
REFERENCE MATERIAL: Simplified and Amplified book-keeping and accounting for SS1-3 by Femi Longe
INSTRUCTIONAL MATERIAL: White board and marker
CONTENT:
A machine was purchased at a cost N10,000 and was expected to last for 4yrs with a residual value of N600 . you are required to prepare the necessary ledger account to record the transaction using the two available method under the straight line and reducing balancing method
Sol. OLD METHOD (SLM)
Depr.
Depr. =
= = 2,350
| Yr 1 2 3 4 | Cost 10,000 10,000 10,000 10,000 | Depr 2350 2350 2350 2350 | Account depr 2350 4700 7050 9400 | Nbv 7650 5300 2750 600 |
MACHINERY ACCOUNT
| Yr 1. Cost 10,000 ________ 10,000 Yr 2. Bal 7650 _______ 7650 Yr 3. Bal 5300 ________ 5300 Yr 4. Bal 2950 _______ 2950 Bal 600 | Dec. depr. 2350 Dec bal 7650 10,000 Dec. depr 2300 Dec. bal 5300 7650 Dec. depr 2350 Dec. bal 2950 5300 Dec. depr 2350 Dec. bal 600 2950 |
DEPRECIATION ACCOUNT
| Yr 1. Machining 2350 Yr 2. Machining 2350 Yr 3. Machining 2350 Yr 4. Machining 2350 | Profit & loss 2350 Profit & los 2350 Profit & loss 2350 Profit & loss 2350 |
PROFIT & LOSS ACCOUNT
| Yr 1 depr 2350 Yr 2 depr 2350 Yr 3 depr 2350 Yr 4 depr 2350 |
(b) Modern method (new method)
MACHINING ACCOUNT
| Yr 1. Cash 10,000 |
PROVISION FOR DEPRECIATION ACCOUNT
| Yr 1. Bal 2350 Yr 2. Bal 4700 4700 Yr 3. Bal 7050 _______ 7050 Yr 4. Bal 9400 _______ 9400 | Yr 1. PRL 2350 Yr 2. Bal 2350 Profit & loss 2350 4700 Yr 3. Bal 4700 Depr 2350 7050 Yr 4. Bal 7050 Depr 2350 9400 Bal 9400 |
Presentation:
Step 1. The teacher revises the previous lesson
Step 2. Introduces the new topic
Step 3. Explanation to the new topic
Step 4. Illustration and class discussion
Assessment:
What are the major differences between the old method and the new method of accounting for depreciation.
Assignment:
Simplified and Amplified book-keeping and accounting page 20206/20207 Exc 1x and Ex 5
Conclusion:
The teacher summarizes the lesson and give the students notes on the topic.
LESSON NOTE FOR THE EIGHT WEEK ENDING 15-06-2020
CLASS – SS1
DURATION – 40 MIP
NUMBER OF PERIOD – 4
TOPIC – DEPREC IATION
SUB-TOPIC – Treatment of depreciation in the profit and loss account
OBJCTIVES – the student should be able to:
- State the effect of depreciation on the net profit
- The effect of depreciation on taxation
PREVUOUS KNOWLEDGE: the student have been taught about depreciation in the previous lesson
INSTRUCTIONAL MATERIAL: white board and marker
REFERENCE MATERIAL: Essential financial accounting by O.A longe
Content:
Example:
Depreciation schedule
| Yr 1 2 3 4 | Cost 10,000 10,000 10,000 10,000 | Depr 2350 2350 2350 2350 | Acc. Depr 2350 4700 7050 9400 | NBV 7650 5300 2950 600 |
Machining account
| Cash 10,000 |
Provision for depreciation account
| Yr 1. Dec. bal 2350 Yr 2. Dec. bal 4750 _______ 4700 Yr 3. Dr. 7050 _______ 7050 Yr 4. Bal. 9,400 _______ 9,400 | Dec. Profit & Loss 2350 Jan. Bal 2350 Profit & loss 2350 4700 Jan. bal 4700 Deprec 2350 7050 Jan. bal 7150 Deprec 2300 2350 Bal 9400 Bal 9400 |
Profit and loss account
| Yr 1. Depr. 2350 Yr 2. Depr. 2350 Yr 3. Depr. 2350 Yr 4. Depr. 2350 |
Step 1: The revises the previous lesson
Step 2: Introduction of the new topic
Step 3: Explanation of cogent point
Step 4: General class discussion
Assessment:
- What is the effect of depreciation on (a) Net profit (b) Taxation
Assignment: Essential financial accounting for SSS1-3 page 134/ 135 EXC 14.1.
Conclusion: The teacher summarizes the lesson and gives the students notes.\
LESSON NOTE FOR THE NINTH WEEK ENDING 22-06-2020
CLASS – SS1
DURATION – 40 MIP
NUMBER OF PERIOD – 4
TOPUIC – FINAL ACCOUNT
OBJECTIVES: The student should be able to:
- Prepare the trading profit and loss account with adjustment
- Prepare the balance sheet of a company with adjustment
- Draw up the format of final account using the horizontal (T format and the vertical format
PREVIOUS KNOWLEDGE: the student had been taught final account without adjustment
INSTRUCTIONAL MATERIAL: white board and marker
REFERENCE MATERIAL: simplified and amplified book-keeping and accounting by Femi Longe
Content:
ABC and son
Trading and profit and loss account for the year ended 31st Dec- 2020
| Opening stock Add purchases Carriage inward Less return outwardC.O.G.A.SLess goods drawn Less closing stock Cost of sales Gross profit Disc. Allowed Carriage outward Rent Add owing Insurance Less prepaid General Expenses Net profit | N x x x x x x x x x | N x x x (x) x (x) x x xx x x x x xx | Sales Less return inward Gross profit b/d Discount received Decrease in provision | N | N x (x) x xx x x x xx |
ABC and son
Balance sheet as at 31st December 20xy
| Capital Add net profit Less drawing Loan Current level Creditors Owing expense Advance income Bank overdraft | N x (x) x x x x | N x x x x xx | Fixed Assets Land & building Fixtures & fitting Current Assets Stock Debtors Less provision Prepaid expenses Accrued income Cash at bank Cash in hand | Cost x x x x x | Depre. (x) (x) X x x x x x xx | Disc x x x xx |
Vertical format:
ABC and Son
Trading and profit and loss account for the year ended 31st December 20xy
N N N
Sales x
Less Return inward (x)
Less cost of sales
Opening stock x
Add purchases x
Carriage inward x x
x
Less Return outward (x)
Closing stock (x) x
Gross profit xx
Other incomes x
Less expenses
Discount allowed x
Carriage outward x
Rent (add accrued) x
Insurance (less prepaid) x
General Expenses x x
Net profit xx
ABC and Son
Balance sheet as at 31st December 20xy
Cost Depre. NBV
Fixed Assets N N N
Land & building x x
Machinery x (x) x
Fixtures & fittings x (x) x
Motor van x (x) x
xx
Current Assets
Stock x
Debtors (less provision) x
Prepaid expenses x
Accrued income x
Cash at bank x
Cash in hand x
xx
Less current liabilities:
Creditors x
Accrued expenses x
Prepaid income x
Bank overdraft x (x) x
Xxx
Financed by:
Capital x
Add net profit x
Less drawing x x
xx
Loan xx
Presentation:
Step 1: The teacher revises the previous lesson
Step 2: Introduction to the new lesson
Step 3: Explanation of cogent points
Step 4: General class discussion
Assessment
- Simplified and Amplified page 210/211 EXC. 4X.
Assignment
Simplified and Amplified page 207/208 EX 11X.
Conclusion: The teacher summarized the lesson and gives students note.
