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Lesson Plan in Bookkeeping-Final Demo

The lesson plan discusses key concepts in measuring business income, including the difference between cash basis and accrual basis accounting. It aims to teach students about accounting periods, the revenue principle, expense principle, and time-period concept. The lesson will use strategies like group activities and discussion questions to help students understand how to identify revenues and expenses, the importance of consistent accounting periods, and when items should be recorded.

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Juadjie Parba
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241 views4 pages

Lesson Plan in Bookkeeping-Final Demo

The lesson plan discusses key concepts in measuring business income, including the difference between cash basis and accrual basis accounting. It aims to teach students about accounting periods, the revenue principle, expense principle, and time-period concept. The lesson will use strategies like group activities and discussion questions to help students understand how to identify revenues and expenses, the importance of consistent accounting periods, and when items should be recorded.

Uploaded by

Juadjie Parba
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Lesson Plan in Bookkeeping (Chapter 4.

Measuring Business Income)

I. TARGETS

At the end of the lesson, the students will be able to


1. Identify the difference between the cash basis of accounting and accrual basis of accounting.
2. Determine the importance of the accounting period in any business entity.
3. Explain the revenue principle and the expense principle of accounting as well the
framework it has for the preparation and presentation of financial statements
4. Generalize the significance of the time-period concept in a business.

II. CONCEPT

Measuring Business Income


SUBCONCEPT
 Cash vs. Accrual Basis of Accounting
 Accounting Period
 Revenue Principle
 Expense Principle
 Time-Period Concept

MATERIALS

 Projector
 Laptop

REFERENCE

Financial Accounting Volume one by Jose F. Peralta and Conrado T. Valix, pages 38-44.

III. STRATEGIES
 PREPARATION
1. Routine Activities
Greeting the class, prayer passing of assignments (if they have) and ask them to keep all
their notes away.
2. Review
Show them the illustration in the projector which indicates the table of debit and credit
rules and let the whole class answer for the corresponding exercise. Ask one of the
student’s for each right answer to write the correct answer.

DEBIT AND CREDIT RULES


Increase Decrease Normal
Balance

ASSETS Debit Credit Debit


LIABILITIES Credit Debit Credit
CAPITAL Credit Debit Credit
OWNERS, DRAWING Debit Credit Debit
REVENUE Credit Debit Credit
EXPENSE Debit Credit Debit
*the answers shown in this table will be eliminated in the actual material.

3. MOTIVATION

A student has the tendency to divert his/her attention in some other stuff during the discussion
especially in a math class. Throughout the discussion this motivation would play part. The class will be
divided into two groups. The name of the game is “Pick Your Luck”. Each group should have different
representative to answer the questions through the discussion. The first player who raises his hand will
be given the chance to answer the question.

If the player got the correct answer then, he will choose a number of his want in the score board then he
will reveal what’s inside it and the points will be added to the group’s score. Take note that the score
cards in the score board has special powers that can get the rival’s point, import one of the member of
the other group and neutralizes the opponent so that it cannot get the chance to answer the next
question or they can share scores.

 PRESENTATION

Cash vs. Accrual Basis of Accounting

Cash Basis of Accounting

 Recognizes revenue when cash is received.


 Recognizes expense when cash is paid.

Under the cash basis, service rendered in current year (2019) for which cash is collected
in the next year (2020) would be treated as 2020 revenue. Under the cash basis, expense
incurred in the current year (2019) for which cash is disbursed the next year (2020) is 2020
expense.
Because of these improper assignments of revenues and expenses, the cash basis of
accounting is generally considered un acceptable. There is no need for adjusting entries under
the cash basis of accounting.

Accrual Basis of Accounting

 Recognizes revenue when sales are made or services are performed, regardless of when cash is
received.
 Recognizes expense as incurred, whether or not cash is paid out.

Under the accrual basis of accounting adjusting entries are prepared to bring the
accounts up-to-date for an economic activity that has taken place but has not been
recorded.

Accounting Period

Accounting Period is the period of time.

 One month
 One Quarter
 One Year
Into which an entity’s life is arbitrarily divided for financial statement purposes. Every
business prepares Annual Financial Statements.

Fiscal Year

 Twelve month accounting period used by an entity.


 Used by most company’s coincides with the calendar year which ended on (some other)
December 31.

Revenue Principle

Revenue Principle is the basis for recording revenues.

 Tells accountants when to record revenue and the amount of revenue to record
 Says to record revenue when it has been earned-but not before.

Framework for the Preparation and Presentation of Financial Statements

 States that Income or Revenue is recognized in the Income Statement when an increase in
future economic benefit related to an increase in an asset or a decrease of a liability has risen
that can be measured reliably.

Time-Period Concept

 Ensures that information is reported at regular intervals.

Fire insurance policies, for example, cover a period of 12 months. If a company prepares
monthly income statement, a portion of the cost of such policy should be allocated to the cost
of insurance expense each month that is policy is in force.

For some expenditure, such as advertising, employee training program it is not possible to
estimate objectively the number of accounting period. Accounting principles require that the
expenditures be charge immediately to expense.

C. APPLICATION

Ask questions to the students about the topic that has been discussed.

1. How many months does the fiscal year has?


2. State the basic principle of revenue in your own words.
3. State the basic principle of expense in your own words.
4. For you, which is better? Cash or Accrual basis of Accounting?

D. EVALUATION

See attached paper

E. AGREEMENT

Before dismissing the class, ask them to read ahead the next topic.
Prepared by:

JUADJIE B. PARBA
SHS Teacher Applicant

Name___________________________________ Date:____________________________
Year & Section____________________________

GENERAL INSTRUCTIONS: Erasures and any form of alterations are invalid and will be considered wrong.

1. IDENTIFICATION: Write on the spaces provided the terms that are being described.

_______________1. Tells accountants when to record revenue and the amount of revenue to record.

_______________2. Twelve month accounting period used by an entity


_______________3. Ensures that information is reported at regular intervals.
_______________4. Recognizes revenue when cash is received.
_______________5. Recognizes in the income statement when an increase in future economic benefit
related to an increase in an asset or a decrease of a liability has risen that can be measured reliably.
_______________6. Recognizes in the income statement when a decrease in future economic benefit
related to a decrease I an asset or an increase of a liability has arisen that can be measured reliably.
_______________7. Identifies all expenses incurred during the period, measure the expenses, and matc
hthem against the revenue earned during the some time period.
_______________8. Into which an entity life is arbitrarily divided for financial statement purposes. Every
business prepares Annual Financial Statements.
_______________9. Recognizes expense as incurred, whether or not cash is paid out
_______________10. Recognizes expense when cash is paid.

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