Name: Narrado Williams

Subject: Principles of Accounts

Topic: The Accounting Equation

Grade: 10

Date: November 30, 2017

Duration: 45 Minutes

Teaching Strategy:

Brainstorm: To gather information from students about the Accounting Equation.

Explanation: Will be used to clarify concepts introduced to students and give details to ensure

understanding.

Discussion: Will be used to facilitate teacher student interaction to develop students’ cognitive

skills.

Demonstration: This will be used to show how to use the Accounting Equation to calculate for

Assets, Capital and Liabilities.

Scenario: To provide students with situation relating to the topic an allow them to use their

critical thinking skills to analyze the problem.

Resource Materials:

Textbook- Principles of Accounts (CXC) for the Caribbean Fourth edition written by Frank Wood

and Shelia Robinson, Chapter 3 p(17-18) will be used for reference and activities.

 Multi-Media Projector: - this will be used to aid the PowerPoint presentation to project

slides on the white board.

  Laptop: - The laptop will be used to create the PowerPoint and research further details on

the content.

 White board: - The white board will be use to write notes and instructions on.

 White board marker: - the marker will be used to write on the white board giving the

students activities and instructions.

 Ruler: - the ruler will be used to divide the white board into sections and to draw up

accounts.

Previous Knowledge:

Students will have knowledge of the topic since they may be from homes where a family member

operates business.

General Objectives:

Students will:

1. Become knowledgeable about the Accounting Equation.

Specific Objectives:

Students will be able to:

1.1 define the following terms after an introductory activity

a) Accounting Equation

b) Asset

c) Liability

d) Capital

1.2 accurately state the Accounting Equation after PowerPoint presentation.

1.3 state two importance of the Accounting Equation to business after class discussion.

1.4 correctly calculate the following using the Accounting Equation:

 a) Assets

b) Capital

c) Liability after PowerPoint presentation.

Major Concepts:

 Assets: Assets are items that are purchased by a company that have financial value, are

expected to be useful to the business, and can be expressed in cash value.

 Liability: A liability is a company's financial debt or obligations that arise during the course

of its business operations.

 Capital: Capital means that amount or asset which is invested in business by businessman

or owner of business.

 Account Equation: the Accounting Equation, also called the balance sheet equation,

represents the relationship between the assets, liabilities, and owner's equity of a business

Content Summary:

The Accounting Equation, also called the balance sheet equation, represents the relationship

between the assets, liabilities, and owner's equity of a business. The Accounting Equation consist

of three main parts to it the assets, liabilities and the capital. Assets in a business are items that are

purchased by a company that have financial value, are expected to be useful to the business, and

can be expressed in cash value. Liability is defined as a company's financial debt or obligations

that arise during the course of its business operations. Capital is the means that amount or asset

which is invested in business by businessman or owner of the business. The Accounting Equation

is written as Assets=Capital + liability whenever you are finding the total assets. It can be written

when finding capital as Capital=Assets-liability and to find liability the equation would change to
Liabilities=Assets-Capital. The importance of the Accounting Equation that it enable you to track

the debits and credits of your business and the accounting equation is to show the real-life

financial condition or position for a business.

See the appendix for calculation of Assets, Liabilities and Capital using the

Accounting Equation.

Introduction:

The lesson will be introduced to the students with a scenario with components of the Accounting

Equation.

Development:

Step 1: The students will be lead into a discussion after the introductory activity in order to come

up with a definition for Assets, Liability and Capital. The teacher will pose questions to the

students such as what they think Assets, Liability and Capital are. The students’ definition will be

recorded on the white board where the students’ and the teacher’s definition will be compared and

the students allowed write the correct definition.

Step 2: After the discussion of the terms the student should be able to arrange components of the

Accounting Equation to correctly state the Accounting Equation. The students will therefore be

asked if they how they think the Accounting Equation can be used to calculate Assets, Liabilities

and Capital of the business owner in the scenario. The students responses will be recorded on the

white board where the teacher’s and the students’ equation will be compared and the students will

be allowed to copy the correct equation from the board.

Step 3: The student will be asked to tell two importance of the Accounting Equation to business.

A discussion will therefore follow on the importance of the Accounting Equation in a business.

The students responses will be recorded by the teacher and a comparison of what the students’ and

the teacher have will be done. The student will then copy their responses.

Step 4: The teacher will allow three student to come to the board to calculate the Assets,

Liabilities and Capital using the Accounting Equation the students in the class will instruct their

classmates as to how the calculations will be done. The teacher will guide the students’ as they

instruct their classmate what to write on the board. The students will view the teacher’s workout

on a PowerPoint however, if there is any incorrect calculation the students will correct their

example and copy it to their notebooks.

Step5: By asking the students to state what they have learnt a summary of the lesson will be

done where random students will be ask to stand and answer a question or to share what they

have learnt about the Accounting Equation. The teacher will make any misconceived concept by

the students clear and guide how the students respond to the question ask or what they are

sharing.

Culminating Activity:

Students will be given a worksheet with questions to calculate Assets, Capital and Liability using

the Accounting Equation.

Evaluation:

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________
 Appendix

Scenario

Lydia-Marie is the business owner of Francine’s Delight and Pastry Store. Lydia wanted to know

what her assets were and she also wanted to know what her liabilities are and also what her

capital is. She when to Jody who is an Accountant for the past 5 years and told her what she

wanted her to do for her. Jody told her that there is an accounting calculation they must do using

a Formula to find what the assets, liabilities and capital of the business. The formula can also

reveal the true financial condition of the business. Can you help Lydia-Marie and Jody to tell the

name of the accounting formula?

Using the Accounting Equation fill in the blank spaces.

Assets ($) Liabilities ($) Capital ($)

12,500 1,800 ?

16,800 ? 12,500

? 11,650 30,000

1. Capital=Assets-liability
?=12,500-1,800
? =10,700

2. Liability=Assets-Capital

?=16,800-12,500

?=4300
 3. Assets=liability + Capital

?=11,650+30,000

?=44,650

In Class Activity

Calculate the missing figure using the Accounting Equation.

1. Asset: 10,000
Capital:?
Liability: 2000

2. Asset: 10,000
Capital: 7000
Liability:?

3. Asset: 15400
Capital:?
Liability: 6000

4. Asset: 16800
Capital:?
Liability: 1000