Account Second Term Scheme of Work and Lesson Notes for Senior Secondary School Two( SSS 2)
Second Term Scheme of Work Account for SSS 2
WEEK 1 Three column cash book, Discounts, Reason, Calculation
2 Three column cash book (preparation)
3 Petty cash book
4 Posting subsidiary to ledger
5 Trail balance
6 Trading Account
7 Profit and Loss account
8 Balance sheets
9 Bank Reconciliation
10 Revisions
CLASS – SS2
WEEK 1 Revaluation Account
Admission of a new partner
2 Dissolution account
3 Accounting Ratio
4 Single entry/incomplete record
5 Single entry/incomplete record
6 Accounting of nonprofit making organization.
7 Receipt and payment account
8 Treatment of subscription and other nominal ledgers
9 Preparation of income and expenditure account and balance sheet
10 Revisions
LESSON NOTE FOR THE FIRST WEEK ENDING 12-01-2020
CLASS – SS2
DURATION – 40 M/P
NO OF PERIOD – 4
TOPIC – Revaluation account
BEHAVIOURIAL OBJECTIVES – The students are expected to
Give the meaning of Revaluation account
State the reasons for the preparation of a revaluation account
Prepare a revaluation account from a given question
PREVIOUS KNOWLEDGE – The students are familiar with the preparation of partnership account.
INSTRUCTIONAL MATERIALS – Simplified and Amplified financial Accounting for SSS1 – 3 BY Femi Longe.
CONTENT:
Revaluation of assets is the upward of downward review of assets. It occurs in any of the following circumstances.
Introduction/Admission of a new partner
At the retirement of a partner
Changes in the profit sharing ratio.
The asset of an organization is revalued in respect to the current market value of such assets. It is possible that the value of an asset may be lesser or higher than the market value as at the time in which a new partner is being admitted or old partner returns from the business.
Accounting Entries
Open a Revaluation Account
On increase in the value of assets
Dr: Asset Account
Cr: Revaluation account
On decrease in the value of Assets
Dr: Revaluation Account
Cr: Asset Account
On Decrease in a value of liabilities
Dr: Revaluation account
Cr: Assets Account
(iv) On decrease in value of liabilities
Dr: Liability Account
Cr: Revaluation Account
Introduction of goodwill
Dr: Goodwill Account
Cr: Revaluation account
Profit on Revaluation
Dr: Revaluation Account in old profit sharing ratio
Cr: capital Account
Loss on Revaluation
Dr: Capital Account in old profit sharing ratio
Cr: Revaluation account
Goodwill written off:
Dr: Capital Account in old profit sharing ratio
Cr: Goodwill Account
The above Accounting entries may be summarized as follows:
Dr Revaluation Account Cr
| – Assets x + Liabilities x Sharing of profit A x B x xx | – Assets x + Liabilities x xx |
NB: In revaluation of Assets the following accounting will x prepared
Revaluation account
Capital account
Balance sheet
Presentation:
Step i: Teacher introduces the lesson
Step ii: He revises the previous lesson
Step iii: Gives detail explanation on the terms Involved in revaluation of assets.
Step iv: Preparation of revaluation account
Evaluation:
What is the significance of revaluing an asset at the admission or retirement of a partner.
Assignment
Simplified and Amplified Book Keeping and Accounting page 336/337 Ex 3 and 5x
Conclusion: Teacher summarizes the lesson and give detail note.
LESSON NOTE F OR THE SECOND WEEK ENDING 19-01-2020
CLASS – SS2
DURATION – 40 M/P
NO OF PERIOD – DISSOLUTION FO PARTNERSHIP
SUB-TOPIC – REALIZATION ACCOUNT
OBJECTIVES – The students are expected to:
State the meaning and reason for dissolving a partnership account.
Prepare a realization account
PREVIOUS KNOWLEDGE – The student are familiar with the admission of a partner and revaluation account.
INSTRUCTIONAL MATERIAL – white board and marker
REFERENCE MATERIAL – Essential financial accounting for SS1-3 by O.A. Longe et al; and simplified and Amplified book keeping and Accounting for SSS1 – 3 by Femi Longe.
CONTENT
Dissolution is the loving to an end of a partnership agreement. It is the breakup of a partnership business. If partnership may be dissolved as a result of one or more of the following factors:
Bankruptcy of partners
Death of a partner
Expiration of agreed close
Insolvency
Joint agreement among the partners
Retirement of one or more partner
Whenever the partnership business is dissolved, the asset are realized (sold off or converted into cash) or distributed in the following order:
Losses must be paid out of capital
Payments of debts and liabilities to outside creditors
Payment of partnership loan
Settlement of partners capital
FORMAT OF BOOKS OT BE OPEN ON DISSOLUTION OF A PARTNERSHIP
Dr. REALIZATION ACCOUNT Cr
| Book value of Assets: Debtors x Plant & machine x Furniture & fittings x Stock x Cost of liquidation Share of profit A x B x x xx | Cash Realized from sales: Debtors x Plant & machine x Furniture & fittings x Stock x Creditors discount x Goodwill x Xx |
CASH BOOK
| Balance b/f x Realization: Debtors x Plant & machine x Furniture & fittings x Stock xx | Liquidation cost x Creditors x Loan x Capital: A x B x x xx |
CAPITAL ACCOUNT
| A | B | A | B | ||
| Cash | xx | xx | Balance b/f Share of profit | x x | x x |
| xx | xx | xx | xx |
Presentation:
Step 1: Revision of the last topic
Step 2: Introduction of the new topic
Step 3: Explanation of salient points
Step 4: General class discussion
Evaluation
Some factors are responsible for the discontinuation of a partnership business, state such factors with a practical example.
Assignment
Simplified and Amplified Book keeping and Accounting page 344 Ex 1 Xa, 2 and 4x.
Conclusion:
The teacher summarizes the lesson and give the students note on the topic taught.
LESSON NOTE FOR THE 3RD WEEK ENDING 26-01-2020
CLASS – SS2
DURATION – 40 M/P
NUMBER OF PERIOD – 4
TOPIC – ACCOUNTING RATIO
OBJECTIVES – The students are expected:
Define accounting ratio
Calculate mark up and margin
Convert mark up to margin and vice versa
PREVIOUS KNOWLEDGE – The students are familiar with the final account.
INSTRUCTIONAL MATERIAL – white board and marker
REFERENCE MATERIAL – Amplified and simplified book keeping and accounting by Femi Longe
Essential financial accounting for SS1 – 3 by O.A. Longe et al
CONTENT
An Accounting ratio is a proportion or fraction or percentage expressing the relationship between one item in a set of financial statement and another item in the same financial statement.
The main ratio under discussion here are:
Mark up
Margin
Rate of stock turnover
Net profit margin
Gross profit margin
RELATIONSHIP BETWEEN MARK UP AND MARGIN/CONVERSION OF MARGIN TO MARK UP.
MARGIN MARK UP
¼ ————-à ¼ – 1
——-à
MARK UP TO MARGIN
MARK UP MARGIN
———à
———à
Presentation:
Step 1: The teacher revises the previous lesson
Step 2: Introduces the new topic
Step 3: List and Explain the ratios under consideration
Step 4: Application of the ratio in final account
Evaluation
Give the meaning of the following
Mark up (b) margin (c) date of stock turn over
Assignment
Amplified and simplified page 221/223 EX 4, 5X and 6X
Conclusion
The teacher summarizes the lesson and give students note on the subject matter.
LESSON NOTE FOR THE FOURTH WEEK ENDING 02-02-2020
CLASS – SS2
DURATION – 40 M/P
NO OF PERIOD – 4
TOPIC – SINGLE ROOM AND INCOMPLETE RECORD.
OBJECTIVES – The students are expected to:
Determine the profit and loss from statement of affairs
Prepare the trading and profit and loss account
Prepare a balance sheet.
INSTRUCTIONAL MATERIALS: White board/marker
PREVIOUS KNOWLEDGE – The students are familiar with the preparation of the statement of affair from incomplete record.
REFERENCE MATERIALS: Amplified and Simplified Book keeping and Accounting for SS1 -3 by Femi Longe Essential financial accounting for SS1-3 by O.A. Longe et al.
CONTENT
To prepare a final account from an incomplete record, the following procedures must be followed:
Preparation of opening statement of affairs
Draw total creditors and debtors ledger control account to determine purchases and sales respectively.
Adjustment to all nominal account chargeable to profit and loss account prepare the final account.
FORMATS
Statement of Affairs (opening)
Capital x fixed Assets x
Current liabilities x current Assets x
xx xx
Debtors (sales) ledger control account
Balance b/d x cash from debtors x
Trading/sales x cheque from debtors x
Balance c/d x
xx xx
Closing balance of creditors x
Add cash/cheque paid to supplier x
Less opening balance creditors x
Trading (purchases) x
Presentation:
Step 1: Revision of previous topic
Step 2: Introduction of new topic
Step 3: Explanation of cogent points
Step 4: General class discussion
Evaluation
Simplified and Amplified financial Accounting page 357 EXC 6
Assignment
Simplified and Amplified financial accounting page 356 EXC 5X.
Conclusion
The teacher summarizes and gives note to the students.
LESSON NOTE FOR THE SIXTH WEEK ENDING 16-02-2020
CLASS – SS2
DURATION – 40 M/P
NO OF PERIOD – 4
TOPIC – Accounting for a non – profit making organization.
OBJECTIVES – The students should be able to:
Give examples of a non – profit making organization
State the terms associated with the nonprofit making organization
State the limitation of the profit making organization.
PREVIOUS KNOWLEDGE – The students are familiar with the incomplete records and all its adjustment.
INSTRUCTIONAL MATERIAL – White Board and Marker
REFERENCE MATERIAL – Simplified and Amplified Book keeping and Accounting for SS 1 – 3 by Femi Longe Essential financial Accounting for SS 1-3 by O.A. Longe and R.A. Kazeem.
CONTENT
Non profit making organization such as clubs, societies and charitable bodies are not profit oriented, but to provide services to their members in place of trading and profit and loss account in the trading concerns, such association prepare the following account to show the financial affairs to their members.
Receipt and payment account
Income and expenditure account
Balance sheet
Differences between profit oriented organization and a non – profit oriented organization.
| S/N | PROFIT ORIENTED | NON – PROFIT ORIENTED |
| 1 2 3 4 5 6 7 | Profit & loss Account Net profit Net loss Capital Trading Gross profit Net profit | Income And Expenditure Account Surplus Or Excess of Income Over Expenditure Deficit or Excess of Expenditure over income Accumulated fund Bar trading Bar profit No profit motive |
Evaluation
Step 1: The teacher reviews the previous topic
Step 2: He introduces the new topic
Step 3: Explanation of salient points
Step 4: General class discussion
Evaluation
List six organizations that may be regarded as nonprofit making organization
Assignment
What are the likely sources of income to a nonprofit making organization.
Conclusion
The teacher summarizes the lesson and gives the students note on the subject matter.
LESSON NOTE FOR THE SEVENTH WEEK ENDING 23-02-2020
CLASS – SS2
DURATION – 40 M/P
NO OF PERIOD – 4
TOPIC – RECEIPT AND PAYMENT ACCOUNT
OBJECTIVES – The student should be able to:
State the meaning of receipt and payment
Compare receipt and payment with the cash book
Prepare the receipt and payment account.
PREVIOUS KNOWLEDGE – The students are familiar with the preparation of the cash book.
INSTRUCTIONAL MATERIAL – White board and Marker
REFERENCE MATERIAL – Financial accounting made simple by Robert O. Igben: Simplified and Amplified Book keeping and Accounting by Femi Longe.
CONTENT:
Receipt and payment account is a statement of cash actually received and paid during a given period, receipt being debited and payment credited. The receipt and payment account is similar to the cash account prepared by the profit oriented organization.
FEATURES
It is a real account
Balance represent cash in hand
Only actual receipt and payment are recorded.
Include capital and Revenue items
LIMITATION
LIMITATION
There is no disclosure of accrued and prepayment.
It is not possible to determine surplus or deficit
Non – cash item such as depreciation provision etc are not included
There is no distinction between capital and revenue items.
FORMAT
Receipt and payment Account for the year ended 31st December 19XY
| N Bal b/d x Donations x Subscription x Dance receipt x Annual dinner x Sales of ticket x Income from refreshment x | N Rent x Wages x Transport x Postage x Honorarium x Salaries x Supplies of refreshment x Meeting expenses x General expenses x Balance c/d x |
| Xx | Xx |
Presentation:
Step i: The teacher introduces the lesson
Step ii: Reviews the previous lesson
Step iii: Gives explanation on the topics
Step iv: General class discussion
Evaluation
What is receipt and payment Account
What are the similarities between receipt and payment account and the cash book.
State and explain the major feature of receipt and payment account.
Assignment
Simplified and Amplified Book – keeping and Accounting page 246 EXC 1X
Conclusion
The students were given note on the subject matter after the class summary.
LESSON NOTE FOR THE EIGHT ENDING 02-03-2020
CLASS – SS2
NO OF PERIOD – 40 M/P
TOPIC – Nonprofit making organization account
SUB-TOPIC – Treatment of subscription and other nominal Accounts
OBJECTIVES – The students should be able to:
State the meaning of subscription
Differentiate between accruals and prepayment
State the treatment of subscription and other nominal account in the income and expenditure account and in the balance sheet.
INSTRUCTIONAL MATERIAL – White Board & Marker
REFERENCE MATERIAL – Simplified Book keeping and accounting to SS 1-3 by Femi Longe Essential financial accounting for SS 1-3 by O.A. Longe et al.
CONTENT:
Subscription is the contribution made by the member of the club or society at regular intervals. It can be paid by members in advance or in arrears.
Subscription in arrears:- This is a sum of money due from members of club for a particular year but which has not been paid for in that year. It is treated as a “current asset in the final account”.
(ii) Subscription in Advance:- This is the sum of money paid in advance (prepaid) by the members of club representing their dues for next year. It is treated as a liabilities in the balance sheet.
FORMAT OF ADJUSTMENT SUBSCRIPTION
| Opening arrears x Income & Expenses x Closing Advances x xx | Opening Advance x Cash x Bank x Closing Arrears x xx |
OTHER NOMINAL ACCOUNT
OWING EXPENSES
Closing balance x
Add cash x
x
Less openings x
Income & Expenditure x
ADVANCE/PREPAID EXPENSES
Opening balance x
Add cash x
x
Less closing x
Income and Expenditure xx
NB- Accrued expenses and prepaid subscription are treated as liabilities in the balance sheet. While prepaid expense and accrued subscription are treated as an asset.
Presentation
Step i: The teacher introduces the lesson
Step ii: He reviews the previous lesson
Step iii: Gives explanation on salient point
Step iv: General class discussion
Evaluation
Simplified and Amplified Book keeping and Accounting page 246 EX 2X
Assignment
Simplified and Amplified page 246 EX 3X
Conclusion: The students were given note on the lesson taught.
LESSON NOTE FOR THE NINETH WEEK ENDING 09-03-2020
CLASS – SS2
DURATION – 40 MIP
NOS OF PER- 4
TOPIC – Income and expenditure account and the balance sheet
OBJECTIVE: The students are expected to:
State the differences between the income and expenditure and the receipt and payment account
Compare and contrast between income and expenditure and the profit and loss account.
Prepare income and expenditure Account with a balance sheet.
PREVIOUS KNOWLEDGE – The students are familiar with the profit and loss Account.
INSTRUCTIONAL MATERIAL – White board and marker.
REFERENCE MATERIAL – Simplified and Amplified Book keeping and Accounting for SSS 1-3 by Femi Longe.
CONTENT
The following is a summary of receipt and payment for the year
| Receipt (Dr) | Payment (Cr) |
|
Balance
b/d
360
Subscription:
2006 2660
2007
100
Restaurant
takings 8000
11120 | Restaurant supply 6000 Wages of bar man 1120 Printing 140 General Expense 1050 Postages 800 Travelling expense 1030 Balance c/d 980 11,120 |
Additional information
31/12/2005 31/12/2006
Freehold premises 5000 4500
Furniture 3620 3620
Stock of refreshment 62020 548
Creditors for refreshment 450 490
Subscription in Arrears 160 20200
Postage owing 70 80
You are require to prepare
Trading account
Income and expenditure account
Balance sheet as at 31st December
Solution
Statement of Affairs as at 31st December 2005
| N Acc. Fund 9238 Current liabilities Postage owing to creditors 450 520 9758 | Fixed Asset N Freehold 5000 Furniture 3620 8620 Current Asset Stock 62020 Subscription in Arrears 160 Cash 360 1138 9758 |
Purchases control account
Cash 6000 Bal b/f 450
Bal C/d 490 Trading 6040
6490 6490
Restaurant Trading Account
| Opening stock 62020 Purchases 6040 6658 Less closing stock 548 6110 Gross profit 202090 8000 | Sales 8000 8000 |
Restaurant Trading Account
| Barman wages 1120 Net profit 77 202090 | Gross profit b/d 202090 202090 |
Income and Expenditure Account
| N Printing 140 General expenses 1050 Postage 810 Travelling 1040 Depreciation premises 500 3530 | N Profit on restaurant 770 Subscription 2670 Deficit 90 3530 |
SUBSCRIPTIONS
| Bal c/d Arears 160 Income & Expenses 2670 Bal c/d Adv. 100 2930 Bal b/d 20200 | Cash 2760 Bal c/d Arrears 20200 2930 Bal b/d 100 |
Balance sheet as at 31st December 2016
| Acc. Fund 9238 Deficit (90) 9145 C. Liabailties Creditors 490 Postage owing 90 Sub in Adv. 100 670 9828 | Cost Dep. MBV Freehold 5000 500 4500 Furniture 3620 – 3620 C. Assets: Stock 548 Sub. Arrees 20200 Cash 980 |
Presentation:
Step i. Revision of the previous topic
Step ii. Introduction of the new topic
Step iii. Explanation at salient points
Step iv. General class discussion
Evaluation:
Simplified and Amplified book-keeping and accounting page 272 exc. 6x
Assignment:
Simplified and Amplified book-keeping and accounting page 274 ex 8&9
CONCLUSION: The studentswere given note on the topic taught after summary
