Account First Term Scheme of Work and Lesson Notes for Senior Secondary School Two( SSS 2)
First Term Scheme of Work Account for SSS 2
Week 1. Revision of SS1 work.
2. Account error.
3. Correction of error.
4. Control Accounts: scales ledger.
5. Purchases ledger control Account.
6. Manufacturing Account.
7. Manufacturing Account (market value).
8. Manufacturing Account.
9. Introduction to partnership Account.
10. Partnership Account
11. Revision
12. Examination
LESSON NOTE FOR THE FIRST WEEK ENDING 15TH OF SEPTEMBER 2020
SUBJECT -ACCOUNTING
CLASS – SS2
DURATION– 40 MIP
NO OF PERIOD- 4
TOPIC– ACCOUNTING. Revisions of SS1 work.
PREVIOUS KNOWLEDGE: The student had been examined on the various topics taught in the SS1 scheme
BEHAVIOURS OBJECTIVES- The students should be able to:
Recall all the topics taught in SS1
Appreciate Accounting as a subject
INSTRUCTIONAL MATERIAL- White board
REFERENCE MATERIAL – SS1 scheme of wok
CONTENT:
Revision of first term, 2ND term and third term Ss1 scheme.
Presentation.
Step i. He asks the students to list the various topics taught in SS1 first term to third term.
Step ii. General discussion on the topics
Evaluation:
State you like and your dislike in Accounting.
Assignment
Do a thorough review of your knowledge of Accounting with the knowledge of Accounting in the SS1 class.
LESSON NOTE FOR THE SECOND WEEK ENDING 22ND SEPTEMBER2020.
CLASS- SS2
SUBJECT- ACCOUNTING
DURATION- 40 MIP
NOS OF PERIOD- 4
TOPIC- Accounting Errors
Behavioral objectives: The students should be able to:
State the meaning of error
List the various type of accounting Errors and their classification.
Previous knowledge- the students have been taught out to prepare the ledger accounts and how to extract the trial balance from the ledger accounts.
Instructional material: marker and white board.
Reference material: simplified and Amplified book-keeping and Accounting for SS1-3 by Femi Longe Essential Financial Accounting for SS1-3 by O.A Longe and R.A. Kazeem.
Content:
Errors are mistakes made while positing or recording transactions in the book of accounts. Accounting Errors are classified into two namely.
Errors that do not affect the trial balance
Errors that effect the agreement of the trial balance.
ERRORS NOT AFFECTING OR NOT DISCLOSED BY THE TRIAL BALANCE
These are errors when occurred will not prevent the trial balance from balancing i.e the debit side and the credit side of the trial balance will be equal even at the occurrence of these errors.
These Errors include:
Error of Principles
Error of original Entry
Compensating Error
Error of Omission
Error of Commission
Complete reversal of Entry
Duplicating Error.
ERRORS AFFECTING OR DISCLOSED OF THE TRIAL BALANCE
These are Errors when occurred will not allow the debit side of the trial balance to be Equal to the credit sides i.e it will prevent the agreement of the balance of the trial balance. These Errors includes:
One sides/ partial omission
Misposting of figures
Errors of transfer of totals at the subsidiary books
Dual record on the same side
Trial balance total Errors
Presentation:
Step 1. Revision of the previous topic
Step 2. Introduction of new topic
Step 3. Explanation of the topic
Step 4. General class discussion
Evaluation:
Define the term Accounting Error
List the two classification of Accounting Error
List and explain at least three Error affecting the trial balance
Assignment:
What are the reasons for the occurrence of Errors in accounting
List and explain all Error affecting accounting Error
Conclusion:
The teacher summarizes the lesson and give the students note on the topic.
LESSON NOTE FOR THE THIRD WEEK ENDING 29-09-2020
CLASS- SS2
DURATION- 40 MIP
NOD OF PERIOD- 4
TOPIC- CORRECTION ERRORS
OBJECTIVE: The student should be able to:
Use the journal proper to correct Errors affecting the trial balance and Errors not affecting the trial balance.
(ii) State the meaning and application of journal and suspense Account
PREVIOUS KNOWLEDGE: The students have been taught about the classification and meaning of Error in the previous lesson
INSTRUCTIONAL MATERIALS: simplified and Amplified Book-keeping and Accounting for SS1-3 by Femi Longe, Essential Financial Accounting for SS1-3 by O.A Longe & R.A kazeem
CONTENT:
In correcting Accounting Errors we need to understand the following
Errors not affecting the trial balance will be corrected through the use of the journal strictly following the double entry principles
Errors affecting the trial balance also will be corrected following the double entry principle through the use of the suspense Account.
Suspense Account can be defined as the account used to record the difference on a trial balance temporarily until the error are corrected
ILLUSTRATION ONE
Show the journal entries to correct the following errors.
The purchase of furniture N60 had been entered in the furniture expenses account
Sales of goods N20 to Ayo had been completely Omitted from the books
The payment of cash to Ogundele N100 had been debited to the cash book.
Purchase of goods N300 from Ayoola had been entered in Ayodele’s account.
The sales account had been undercast by N600 so also the wages account.
Cash payment of N95 to Ronaldo entered in the two accounts as N59.
SOLUTION
| Dr | Cr | ||
| (a) | Furniture account Furniture expenses account Being furniture account wrongly Debited now corrected | 60 | 60 |
| (b) | Ayo Sales Being sales omitted non corrected | 20 | 20 |
| (c) | Ogundele Cash Being payment of cash to Ogundele Mistakenly reversed now corrected | 200 | 200 |
| (d) | Ayodele Ayoola Purchase of goods from Ayodele Wrongly entered in Ayodele account now corrected | 300 | 300 |
| (e) | Wages Sales Undercast in sales and purchase now corrected | 600 | 600 |
| (f) | Ronaldo Cash Correction of undercast of payment to Ronaldo | 36 | 36 |
(2) The totals of the trial balance of Adeola did not agree. The difference was posted to a suspense account pending investigations.
(a) A receipt from Dolapo of N560 was entered in the cash book but not credited to any other account.
(b) Purchases from Marwa of N120 were entered in his account but omitted from the purchase account.
(c) The purchase day book was under cast by N1000
(d) Commission received N3,000 had been correctly entered in the account book, but was posted as N1,300 to the cash book.
(e) The Sales day book was over casting N150
(f) Discount received of N280 was entered in the debit side of discount allowed.
(g) Purchase of motor van N350 had been entered in error, in motor expenses account.
(h) Sales to MacDonald of N1,236 were omitted from the books altogether.
Solution
| JOURNAL | Dr | Cr | |
| (a) | Suspense Dolapo Being cash received from Dolapo omitted from her account now corrected. | 500 | 500 |
| (b) | Purchase Suspense Amount omitted from purchases account now corrected. | 120 | 120 |
| (c) | Purchases Suspense Undercast of purchases day book now corrected | 1000 | 1000 |
| (d) | Cash Suspense Under cast in the cash book now corrected | 202000 | 202000 |
| (e) | Sales Suspense Over cast in the sales day book now corrected | 150 | 150 |
| (f) | Discount allowed Discount received Suspense Discount received wrongly debited to discount allowed now corrected. | 560 | 280 280 |
Dr Suspense Account Cr
| N Dolapo 560 Disc allowed 280 Disc received 280 Bal. c/d 1,850 2970 | N Purchases 120 Purchases 100 Commission received 202000 Sales 150 2970 Bal. b/d 1,850 |
Presentation:
Step 1: The teacher revises the previous lesson
Step 2: Introduction to the new topic
Step 3: Explanation of difficult words
Step 4: General class discussion
Evaluation
What is a journal
Write out the uses, advantages and disadvantages of a journal
What is a suspense account?
State the uses and nature of a suspense account.
Assignment: Simplified and Amplified
Book – keeping and accounting by Femi Lunge page 140 ex 4 and page 150 Ex 5x
Conclusion
The teacher summarizes the lesson and give students note on the topic.
LESSON NOTE FOR THE FOURTH WEEK ENDING 6TH OCTOBER 2020
CLASS – SS2
DURATION – 40 M/P
NO OF PERIOD – 4
TOPIC – CONTROL ACCOUNT
SUB-TOPIC – SALES LEDGER CONTROL ACCOUNT
PREVIOUS KNOWLEDGE – The students had been taught errors and correction of errors in the previous lesson.
OBJECTIVES – The students are expected to:
Define control account
Identify the classification of control account
Explain the purpose of total debtors control accounts
Prepare the sales ledger control accounts.
INSTRUCTIONAL MATERIAL – White board and marker
REFERENCE MATERIAL – Simplified and Amplified Book keeping and Accounting for SSS1-3 by Femi Lounge. Essential financial Accounting for SS 1-3 by R.A. Kazeem and O.A. Longe .
CONTENT
Control accounts can be defined as a memorandum account, the balance of which reflects the aggregate balances of the totals in related ledgers which are prepared following the double entry principles. It is used to monitor debt due from the debtors and debt due to the creditors.
Control account helps in error location
It provide check on the accuracy of balances of ledger
It prevent fraud
It help in ascertaining the balances of the debtors and creditors ledger
It is used to detect missing figure.
Classification
Total debtors control account
Total creditors control account
Sales ledger control account
This is the control accounts for saler ledger. It can also be referred to as total debtors control account. It shows the total debt that from the debtors.
FORMAT
Dr TOTAL DEBTORS CONTROL ACCOUNT Cr
| N Dr Balance b/d x Credit sales x Debit note issued x Int. charge on our due account x Dishonoured cheque x Discount disallowed x x Bal b/d x | N Cr balance b/d x Cash from debtors x Return inwards x Bad debts x Discount allowed x Credit note issued x Bills receivable x Contra/set off x Bal c/d x x |
Presentation
Step i: Revision of previous topic
Step ii: Introduction of new topic
Step iii: Explanation of new topic
Step iv: General class discussion
Evaluation
(i) What is control account?
(ii) Mention the division of control account
Assignment
Simplified and Amplified Book keeping and accounting page 280 Ex 1x
Conclusion – The teacher give students note.
LESSON NOTE FOR THE FIFTH WEEK ENDING 13TH OCTOBER 2020
CLASS – SS2
DURATION – 40 M/P
NO OF PERIOD – 4
TOPIC – PURCHASES LEDGER CONTROL ACCOUNT
OBJECTIVES – The students should be able to:
Define the total creditors control Account
Explain the purpose of creditors ledger control account
Prepare the total creditors control Account.
PREVIOUS KNOWLEDGE:- The students have been taught the meaning and preparation of sales ledger control Account.
INSTRUCTIONAL MATERIAL – White board and marker
REFERENCE MATERIALS:- Simplified and Amplified Book keeping and Accounting by Femi Longe .
Essential Financial Accounting for SS 1-3 by R.A. Kazeem and A.O. Longe .
CONTENT:
Total creditor ledger control is the control account for the purchases ledger. It can be refers to as purchases ledger control account. It shows the total debt due to the creditors.
Format. Total creditor control or
Purchases ledger control Account
| N Cash to supplier x Cheque to supplier x Return outward x Credit not receivable x Discount received x Bills payable x Contra/set off x Balance c/d x xx |
N
Balance
b/d
x
Credit
purchases
x
Discount
received withdrawn x
Cash
refunds x
xx Balance b/d xx |
Contra entries occur when a supplier is also a customer.
Presentation:
Step 1: Revision of previous topic
Step 2: Introduction of new topic
Step 3: Explanation of the new topic
Step 4: General class discussion.
Evaluation:
What is creditors’ ledger?
Mention the items found in the creditors ledger
Assignment:
Simplified and amplified Bookkeeping and accounting page 233 Ex 9x.
LESSON NOTE FOR THE SIXTH WEEK ENDING 20TH OCTOBER 2020
CLASS – SS2
DURATION – 40 M/P
NO OF PERIOD – 4
TOPIC – MANUFACTURING ACCOUNT
OBJECTIVE – The students should be able to:
(i) Define manufacturing account
(ii) Identify and explain the terms associated with the manufacturing account.
(iii) Differentiate between a manufacturing set up and a trading set up.
INSTRUCTIONAL MATERIAL – Charts, white board and marker.
REFERENCE MATERIAL – Simplified and Amplified Book keeping and Accounting for SS1 – 3 by Femi Longe . Essential financial accounting for SS1 – 3 by O.A. Longe and R.A. Kazeem
CONTENT:
Manufacturing account is an account prepared by organizations associated with production or manufacturing and selling of goods.
The main purpose of preparing a manufacturing account is to ascertain the cost of production.
In manufacturing account: there are three main elements of cost namely, materials, labour and expenses. Each of these element are divided into:
(i) Direct cost and
(ii) Indirect cost elements
Direct cost: These are cost that can be traced to the production per unit of an output. They are:
Direction materials:– These are physical things which will actually form part of the finished products.
Direct labour:-This refers to the cost of labour services that can be traced directly to the production of a product e.g wages for workers etc.
Direct Expenses: These are cost that are incurred specifically on a particular product and on every unit produced e.g Royalties, Excise duty etc.
The combination of the three cost elements discussed above make up the “PRIME COST”
INDIRECT COST/FACTORY OVERHEAD EXPENSES:- These are cost incurred in the production of goods and services that are not traceable to a particular product. They are indirect labour and indirect expenses cost e.g depreciation, fuel and undirect wages.
NON MANUFACTURING COST:
These are period cost which are treated as expenses and deducted from the revenue of the period in which they are incurred. They are not part of production cost. They are:
(i) selling expenses
(ii) Distribution expenses
(iii) Administrative expenses
Work-in-progress: This consists of unfinished or partly finished goods.
Presentation
Step i: The teacher revises the previous topic
Step ii: Introduction of the new topic
Step iii: Explanation of salient point
Step iv: General class discussion
Evaluation
(i) What is manufacturing account?
(ii) List and explain the basic division of a manufacturing account.
Assignment:
List and explain the basic terminologies used in manufacturing account
List all necessary and relevant materials and labour involved in a bread production and classify them under the headings (i) Direct materials (ii) Direct labour (iii) Direct expenses (iv) Factory overhead cost.
LESSON NOTE FOR THE SEVENTH WEEK ENDING 27TH OF OCTOBER 2020
CLASS – SS2
DURATION – 40 M/P
NO OF PERIOD – 4
TOPIC – MANUFACTURING ACCOUNT
PREVIOUS KNOWLEDGE – The student have been given details definition of terms used in manufacturing account in the previous lesson.
BEHAVIOURAL OBJECTIVE – The students are expected to:
(i) Draw a comprehensive format of a manufacturing account.
(ii) Applied the format to solve question on manufacturing account
INSTRUCTIONAL MATERIALS – White board and marker
REFERENCE MATERIAL – Financial accounting made simple by Robert O. Igben, Simplified and Amplified financial Accounting for SSS by Femi Longe .
CONTENT
LEARNING FIELD NIGERIA LTD MANUFACTURING AND TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER 2016.
| Opening stock of R.M Add purchase of R.M Carriage inward on R.M Less return on R.M Less closing stock of R.M. Direct labour Direct expenses Prime cost | N x x x x | N x x xx x x x x x | N | N |
| Add factory overhead Factory Rent & Rates Factory insurance Lubricants Depr. at plant & machine General factory Exp. Add opening stock W.I.P Less closing stock W.I.P Production cost Opening stock of F.G Add production cost C. O. G. A. S Less closing stock C. O. S. Gross profit Carriage outward Admin. Expenses Selling expenses Distributive expenses Net profit | N x x x x x | `N X xx x xx (x) Xx x x x x x x x x x x x x | Production cost Sales Gross profit b/d |
| N xx x x x |
Presentation:
Step i: Revision of the previous lesson
Step ii: Introduction of the new topic
Step iii: Detail explanation and demonstration of the new topic.
Step iv: General class discussion
Evaluation
List and explain five (5) items in the manufacturing account
What are the special features of the manufacturing account?
Assignment
Simplified and Amplified Book keeping and Accounting for SSS page 267 Ex 6x
Conclusion
The teacher summarizes the lesson and give the students note on the topic taught.
LESSON NOTE FOR THE EIGHT WEEK ENDING 03-11-2020
CLASS – SS2
DURATION – 40 M/P
NO OF PERIOD – 4
TOPIC – MANUFACTURING ACCOUNT
SUB-TOPIC – TRANSFER PRICING MARKET VALUE OF GOODS MANUFACTURED.
PREVIOUS KNOWLEDGE – The students had been taught how to prepare ordinary manufacturing account.
BEHAVIOURAL OBJECTIVE – The students are expected to:
State the meaning of transfer pricing
Give the effect of transfer pricing on manufactured goods
Prepare a manufacturing account involving transfer pricing/market value.
INSTRUCTIONAL MATERIAL – White board and marker
REFERENCE MATERIAL – Essential financial Account Ex SSS 1 – 3 by O.A. Longe et al, financial accounting made simple by Robert O. Igben and simplified and Amplified Book – keeping and Accounting by Femi Longe .
CONTENT
It is usual for manufacturing firm to transfer the cost of production to trading account but in some cases, the market value of such product is put into consideration and transferred to the trading account. The different between the cost of production and the market value of such goods will result to “Gross profit” on manufacturing which will be credit to the profit and loss account.
The market value may also be the cost of production plus a fixed percentage on the production cost. It may also be referred to as transfer cost of production.
Format
LEARNING FIELD NIGERIA LTD MANUFACTURING AND TRADING AND PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER 2016.
| Opening stock of R.M Add purchase of R.M Carriage on R.M Less return on R.M C. R. A. P. Less closing stock of R.M. C. R. C. Manufacturing wages Royalties Prime cost Add factory overhead Depr. Plant & machine Lubricants Factory rent & rates General factory expenses Add opening W.I.P Less closing W.I.P Production cost Gross profit |
N
x
x
x
(x)
x
x
x
x
| N x x x x x x x x x xx x x x x x xx | Market value | N |
N
x
xx |
Presentation:
Step 1: Revision of the previous lesson
Step 2: Introduction of the new topic
Step 3: Explanation of salient points
Step 4: General class discussion.
Evaluation
What is market value of goods?
Differentiate between production cost and transfer cost of production.
Assignment:
Simplified and Amplified Book keeping and Accounting by Femi Longe page 267/269 to Ex 6x and 8x.
LESSON NOTE FOR THE NINETH WEEK ENDING 10-11-2020
CLASS – SS2
DURATION – 40 M/P
NO OF PERIOD – 4
TOPIC – INTRODUCTION TO PARTNERSHIP ACCOUNT
BEHAVIOURAL OBJECTIVES:- The students should be able to:
Define partnership business
State the types of partnership business and partners in a partnership business.
Write out the content of a partnership agreement (deed)
State the condition necessary where there is no partnership deed
Draw the necessary format applicable to a partnership account.
INSTRUCTIONAL MATERIAL – White board and marker
REFERENCE MATERIAL – Financial accounting made easy by Robert O. Igben; simplified and Amplified Book keeping and accounting for SSS 1-3 by Femi Longe .
CONTENT
What is partnership:- In accordance to section 1 of the partnership Act 202090, partnership can be defined as the relationship which exist between persons carrying on a common business with a view of making profit”. It can be formed by two to twenty (20) (ordinary partnership) or two to ten (banking partnership).
PARTNERSHIP DEED (AGREEMENT)
These are rules contained in a written agreement known as “partnership deed”. The agreement must be signed by the partners in the presence of a lawyer.
CONTENT:
The capital to be contributed by each partnership
The rate of interest on capital
The rate of interest on drawing
The profit sharing rate
The partners salaries, commission and other remuneration
Valuation of good will
Dissolution of partnership
The names of the partners
Right duties of partners
Duration of the partnership
Signatories to the account
The business (partnership) name. Where there is not agreement if no specific agreement is made by the partners, the following provisions of section 24 of the partnership Act of 202090 must be applied.
No interest on the capital
No salary for partners
Profit and losses are shared equally
No interest on drawing
5% interest on loan and extra capital account of partners
No partners may introduce a new partner without the consent of all existing partners.
In a partnership Account the following book are to be opened.
Partners capital account
Partners current account
Partnership appropriation account
Presentation
Step 1: Review of the last lesson
Step 2: Introduction of the new topic
Step 3: Detail explanation of some salient point
Step 4: General class discussion.
Evaluation:
What is a partnership?
List and explain the various type of partnership business and partners
What is a “deed” of partnership?
Assignment
Write out the content of a partnership business
With an agreement
Without an agreement as stipulated by the partnership Act of 202090.
Assignment
Simplified and Amplified Book keeping and Accounting by Femi Longe (Revised Edition) page 309 Ex 1 and 2x.
Lesson Note For The Tenth Week Ending 2020-11-2020
CLASS – SS2
DURATION – 40 MP
NO OF PERIOD – 4
TOPIC – PARTNERSHIP ACCOUNT
SUB-TOPIC – PARTNERS FINAL ACCOUNT.
BEHAVIOUR OBJECTIVE – The Students should be able to:
State the differences between the profit and loss account and then appropriation account
Identify each item in the appropriation account and their treatment.
INSTRUCTIONAL MATERIAL – White board and Marker
PREVIOUS KNOWLEDGE – The students are familiar with the profit and loss account
REFERENCE MATERIAL – Essential financial accounting by Femi Longe
CONTENT
ABC
PARTNERS PROFIT AND LOSS AND APPROPRIATION ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER 19XY
Dr. Cr.
|
|
|
|
| ||
| Carriage outward Rent & rate Add accrual Salaries & wages Less prepaid Depreciation Bad debt Discount allowed Provision for bad debt Net profit Salary: A Interest on Capital A B Share of profit A B | X X X (x) X X X x | x x x x x x x x xx x x x xx | Gross profit Discount received Net profit b/d Int. on drawing | xx xx xx xx x xx |
Presentation:
Step 1: Revision of the previous lesson
Step 2: Introduction of the new lesson
Step 3: Explanation of the lesson
Step 4: General class discussion
Evaluation
What is the major difference between the profit and loss account and the partners’ appropriation account?
What is the usefulness of the appropriation account of a partnership.
Assignment:
Simplified and Amplified Book keeping and Accounting for SS 1-3 BY Femi Longe page 313 Ex 9x.
Conclusion:- Summarizes the lesson and give students note on the topic.
