Review of all Topics Covered in the First Term Financial Accounting SS 1

Lesson Plan: Revision

Subject: Financial Accounting
Class: SS1
Term: 1
Week: 12
Age: 15-16 years
Topic: Revision
Sub-topic: Review of all Topics Covered in the First Term
Duration: 1 hour
Behavioral Objectives:
By the end of the lesson, students should be able to:

1. Review and recall all key concepts covered in the first term.
2. Answer questions related to the topics discussed.
3. Identify areas that need further clarification and practice.
4. Demonstrate their understanding of the various accounting principles and concepts learned.

Keywords:

• Accounting Concepts
• Financial Accounting
• Discounts
• Ledgers
• Subsidiary Books
• Accounting Cycle

Set Induction (5 mins)

The teacher will begin by asking students to recall some of the key topics they have learned throughout the term, such as the ledger, discounts, and the types of journals. This will create a connection between previous lessons and the revision.

Entry Behavior

Students should have knowledge of the various topics covered in the first term of Financial Accounting, including ledgers, journals, discounts, and basic accounting principles.

Learning Resources and Materials:

• Whiteboard/Chalkboard
• Projector (if available) for displaying summary notes
• Revision worksheets with practice questions
• Sample problems from previous lessons

Building Background/Connection to Prior Knowledge:

Students should connect their prior knowledge of basic accounting terms, such as trade discounts, journals, and the accounting cycle, to this revision session. They will also reflect on real-life applications of the accounting concepts learned.

Embedded Core Skills:

• Critical Thinking: Reviewing the information learned and identifying areas of difficulty.
• Numeracy Skills: Practicing calculations related to various accounting topics.
• Problem Solving: Revising and solving problems using different accounting tools and principles.

Learning Materials:

• Revision worksheets
• Past exercise books
• Flashcards for key terms
• Calculator

Instructional Materials:

• Whiteboard markers
• Projector (for digital presentations, if applicable)
• Sample problems for group practice

Financial Accounting SS1 First Term Revision – Week 11

Part A: Review and Revision (20 FAQ with Answers)

1. What is bookkeeping?
   Bookkeeping is the process of recording all the financial transactions of a business.
2. What is the difference between bookkeeping and financial accounting?
   Bookkeeping involves the basic recording of financial transactions, while financial accounting focuses on summarizing and reporting those transactions to external users.
3. What is the accounting equation?
   The accounting equation is: Assets = Liabilities + Owner’s Equity.
4. Why is accounting important for businesses?
   Accounting helps businesses track their financial activities, make decisions, and meet legal requirements.
5. Who are internal users of accounting information?
   Internal users include managers and employees who use accounting information to make decisions within the company.
6. Who are external users of accounting information?
   External users include investors, creditors, government agencies, and customers who use accounting information to make decisions about the company.
7. What are source documents?
   Source documents are original records like invoices, receipts, or purchase orders that support accounting entries.
8. What is the double-entry principle?
   The double-entry principle states that every transaction affects at least two accounts, one being debited and the other being credited.
9. What is the purpose of a trial balance?
   The trial balance helps ensure that total debits equal total credits in the accounts.
10. What is a sales journal?
    A sales journal is used to record all credit sales of goods or services.
11. What is a cashbook?
    A cashbook is a journal used to record all cash transactions, both receipts and payments.
12. What is the purpose of discounts in accounting?
    Discounts are used to encourage customers to pay quickly or to reward customers for large purchases.
13. What are the two types of discounts in accounting?
    The two types are trade discounts and cash discounts.
14. What is a ledger in accounting?
    A ledger is a record that contains all the accounts for a business, showing the detailed effects of transactions.
15. What is a journal entry?
    A journal entry records the details of a business transaction, showing which accounts are affected.
16. What are the types of cash books?
    The main types of cash books are the single-column cash book, double-column cash book, and triple-column cash book.
17. What does the accounting cycle include?
    The accounting cycle includes recording transactions, posting them to ledgers, preparing trial balances, and creating financial statements.
18. What is the importance of the accounting equation?
    The accounting equation helps maintain the balance between assets, liabilities, and equity, ensuring the accuracy of financial records.
19. What is the difference between a trade discount and a cash discount?
    A trade discount is offered at the time of sale, while a cash discount is given for early payment.
20. What is a financial statement?
    A financial statement summarizes the financial status of a business, including the income statement, balance sheet, and cash flow statement.

Part B: Objective Questions

(20 Fill-in-the-Blank Questions with Options)

1. The accounting equation is: Assets = _______ + Owner’s Equity.
   a) Liabilities
   b) Income
   c) Capital
   d) Cash
2. A _______ discount is given when a customer pays early.
   a) Trade
   b) Volume
   c) Cash
   d) Seasonal
3. A _______ is a document used to record sales on credit.
   a) Purchase order
   b) Sales journal
   c) Receipt
   d) Invoice
4. The _______ principle of accounting says every transaction affects at least two accounts.
   a) Double-entry
   b) Single-entry
   c) Trial balance
   d) Cashbook
5. A _______ journal records all transactions involving cash receipts and payments.
   a) Purchase
   b) Sales
   c) Cashbook
   d) Return Inward
6. The _______ is used to summarize financial transactions for each account.
   a) Ledger
   b) Trial balance
   c) Journal
   d) Cashbook
7. The main purpose of the _______ is to show whether the total debits equal the total credits.
   a) Income statement
   b) Trial balance
   c) Ledger
   d) Journal
8. A _______ is an account that shows transactions related to specific people or organizations.
   a) Personal account
   b) Impersonal account
   c) Real account
   d) General account
9. The _______ equation is a key concept in accounting that shows how assets are funded.
   a) Capital
   b) Accounting
   c) Income
   d) Accounting
10. _______ are used to record the date, amount, and purpose of transactions.
    a) Invoices
    b) Receipts
    c) Source documents
    d) Bank statements
11. A _______ balance ensures that total debits equal total credits.
    a) Trial
    b) Net
    c) Cash
    d) Final
12. The _______ journal records all credit purchases.
    a) Sales
    b) Purchase
    c) Cash
    d) Return Outward
13. The _______ accounting focuses on external reporting.
    a) Financial
    b) Cost
    c) Managerial
    d) Internal
14. A _______ is used to verify the correctness of journal entries before posting to ledgers.
    a) Trial balance
    b) Income statement
    c) Cashbook
    d) Journal
15. A _______ is a record that tracks all cash payments and receipts.
    a) Journal
    b) Ledger
    c) Cashbook
    d) Sales journal
16. The _______ is the accounting document that shows the financial position of a company at a specific point in time.
    a) Balance sheet
    b) Income statement
    c) Cash flow statement
    d) Trial balance
17. A _______ account summarizes transactions involving tangible assets.
    a) Real
    b) Personal
    c) Nominal
    d) Impersonal
18. The _______ is where all transactions are first recorded in the accounting cycle.
    a) Ledger
    b) Journal
    c) Trial balance
    d) Cashbook
19. The _______ accounting records and classifies financial transactions.
    a) Bookkeeping
    b) Financial
    c) Managerial
    d) Tax
20. A _______ is used to track accounts receivable and payable.
    a) Sales ledger
    b) General ledger
    c) Cashbook
    d) Trial balance

Part C: Theory Questions

(20 Simple Short Answer Questions)

1. What is bookkeeping?
2. How does the double-entry system work?
3. What is the purpose of a sales journal?
4. Why is a trial balance prepared?
5. What is a cashbook used for?
6. How do businesses benefit from maintaining accurate accounting records?
7. Define a ledger in accounting.
8. What does the accounting equation represent?
9. What is a trade discount?
10. How are discounts recorded in accounting?
11. Who are the external users of accounting information?
12. What is the difference between a journal and a ledger?
13. Why is the cashbook considered a special journal?
14. Explain the importance of financial statements.
15. What is meant by “posting” in accounting?
16. What role do source documents play in accounting?
17. What is the purpose of the accounting cycle?
18. What does a balance sheet show?
19. Explain the function of the purchase journal.
20. How is a financial transaction recorded in the journal?

Part D: True or False Questions

(20 True or False Questions)

1. The accounting equation is always balanced. (True/False)
2. A sales journal records cash transactions only. (True/False)
3. The double-entry system requires that every transaction must be recorded in two accounts. (True/False)
4. A cashbook is used to record both cash receipts and payments. (True/False)
5. Only external users need accounting information. (True/False)
6. The ledger contains detailed information on a business’s transactions. (True/False)
7. A trial balance helps ensure that credits and debits are equal. (True/False)
8. The accounting cycle includes the preparation of financial statements. (True/False)
9. A trade discount is always recorded in the accounting books. (True/False)
10. Source documents support the accounting entries made in journals. (True/False)
11. The cash discount is recorded at the time of sale. (True/False)
12. The purchase journal is used to record sales transactions. (True/False)
13. The trial balance is the first document prepared in the accounting cycle. (True/False)
14. All transactions should be recorded in the journal before posting to the ledger. (True/False)
15. Discounts given to customers encourage them to pay quickly. (True/False)
16. The accounting equation is: Assets = Liabilities + Owner’s Equity. (True/False)
17. The accounting system works without source documents. (True/False)
18. A balance sheet shows the financial position of a company. (True/False)
19. The cashbook is only for recording cash receipts. (True/False)
20. A financial statement can help businesses make decisions. (True/False)

Part E: Fill in the Gaps Questions

(20 Fill-in-the-Blank Questions without Options)

1. _______ is the process of recording financial transactions in accounting.
2. The accounting equation is: _______ = Liabilities + Owner’s Equity.
3. A _______ journal records all cash transactions.
4. The _______ contains the detailed accounts of a business’s financial transactions.
5. _______ are documents that provide evidence for transactions.
6. The _______ is prepared to ensure that total debits equal total credits.
7. _______ accounting focuses on external financial reporting.
8. _______ discounts encourage customers to pay their bills earlier.
9. _______ is used to track cash receipts and payments in a business.
10. The _______ balance summarizes the financial status of a business.
11. _______ accounts are used for tracking transactions with individuals and companies.
12. A _______ is a record of all the financial transactions of a business.
13. The _______ journal records purchases of goods on credit.
14. _______ entries are made to record the details of financial transactions.
15. _______ accounts summarize transactions with tangible assets.
16. _______ is the principle that every financial transaction affects at least two accounts.
17. _______ financial statement summarizes a business’s income and expenses.
18. _______ statements help users understand the financial performance of a business.
19. _______ entries are recorded first in the journal before posting to the ledger.
20. A _______ journal records the sale of goods on credit.

This comprehensive revision guide should provide an overview of all the topics covered during the term and help students prepare effectively.

Content:

1. Review of the Accounting Cycle:
   • Students will revisit the steps involved in the accounting cycle, including identifying business transactions, recording them in journals, posting to the ledger, and preparing trial balances and financial statements.
2. Review of Discounts:
   • A recap of the different types of discounts (trade and cash discounts), how to calculate them, and why they are used by businesses.
3. Ledgers and Journals:
   • Review of personal, impersonal, and private accounts. Students will revisit the purpose and preparation of sales journals, purchase journals, return inward and outward journals, and cash books.
4. Subsidiary Books:
   • Students will be reminded of the importance of subsidiary books in accounting, how they help organize transactions, and how to post information from the journals to the ledger.
5. General Review of Key Concepts:
   • Students will review other important topics such as the accounting equation, double-entry system, and the classification of accounts.

Presentation Steps:

Step 1: Revision of Previous Topics (15 mins)
The teacher will give an overview of all the topics covered so far and will provide a summary of each one. Students will then be invited to ask questions on any topics that were difficult to understand.

Step 2: Group Activity and Practice (20 mins)
Students will be divided into small groups and given different practice problems related to the topics learned (e.g., calculating discounts, preparing journals, solving ledger problems). Each group will discuss and solve the problems together.

Step 3: Review and Clarification (15 mins)
The teacher will go over the answers to the practice problems, discussing common mistakes and offering further explanations. The teacher will then clarify any concepts students still find challenging.

Teacher’s Activities:

• Provide a summary of all topics covered during the term.
• Encourage active participation from students during the revision.
• Provide guidance and clarification as students work through practice problems.
• Answer any remaining questions from students and explain any challenging topics.

Learner’s Activities:

• Participate in group activities, solve practice problems, and ask questions for clarification.
• Review key terms and concepts discussed in the revision session.
• Participate in class discussions and contribute answers to the questions raised by the teacher.

Class Activity Discussion (FAQs):

Frequently Asked Questions (FAQs):

1. What is the accounting cycle?
   Answer: The accounting cycle refers to the series of steps used to record and process all financial transactions in a business, culminating in the preparation of financial statements.
2. How do we calculate discounts in accounting?
   Answer: Discounts are calculated by multiplying the discount percentage by the original price or invoice amount.
3. What is the difference between a trade discount and a cash discount?
   Answer: A trade discount is applied at the time of sale, typically for bulk purchases, while a cash discount is offered to encourage prompt payment after the sale.
4. What are subsidiary books?
   Answer: Subsidiary books are journals where specific types of transactions are recorded before they are posted to the general ledger. Examples include sales journals, purchase journals, and cash books.
5. What are the types of accounts classified in the ledger?
   Answer: Accounts in the ledger are classified into personal accounts, impersonal accounts (which include real and nominal accounts), and private accounts.
6. What is the purpose of a ledger in accounting?
   Answer: The ledger is used to record all financial transactions in a business and classify them into specific accounts, helping to organize and summarize information for financial reporting.
7. Why is the double-entry system important?
   Answer: The double-entry system ensures that every transaction is recorded in two places—debit and credit—ensuring the accounting equation remains balanced and financial reports are accurate.
8. What are the steps involved in preparing a trial balance?
   Answer: To prepare a trial balance, all ledger balances are listed, ensuring that the total debits equal the total credits. It is used to check for errors in the accounting records.
9. What is a journal entry, and why is it important?
   Answer: A journal entry is the first step in recording a financial transaction. It includes details like the accounts involved, the amounts, and whether each account is debited or credited.
10. How do you solve problems related to subsidiary books?
    Answer: To solve problems related to subsidiary books, identify the transaction type, determine which journal to use, record the transaction, and post it to the correct ledger account.

Objective Questions (15 Fill-in-the-Blank Questions with Options a, b, c, or d):

1. The accounting cycle starts with __________.
   a) Journalizing
   b) Identifying transactions
   c) Posting to the ledger
   d) Preparing financial statements
2. A __________ discount is given for early payment of an invoice.
   a) Cash
   b) Trade
   c) Prompt
   d) Quantity
3. The ledger records __________ accounts.
   a) Temporary
   b) Personal
   c) Real
   d) Both personal and impersonal
4. The __________ book is used to record sales transactions.
   a) Purchase
   b) Cash
   c) Sales
   d) Return outward
5. The trial balance ensures that total debits equal __________.
   a) Assets
   b) Income
   c) Credits
   d) Liabilities
6. The __________ principle ensures every transaction is recorded in both a debit and a credit account.
   a) Matching
   b) Double-entry
   c) Consistency
   d) Realization
7. A trade discount is given on the __________ price.
   a) Invoice
   b) List
   c) Final
   d) Net
8. The cashbook is used to record __________.
   a) Purchases
   b) Receipts and payments
   c) Sales
   d) Credit transactions
9. To prepare a journal entry, you must identify the __________ involved.
   a) Accounts
   b) Discount
   c) Transaction date
   d) Cash flow
10. The cash discount encourages customers to pay their bills __________.
    a) Late
    b) Early
    c) Halfway
    d) Over time
11. A ledger contains __________ accounts.
    a) Permanent
    b) Temporary
    c) Closing
    d) Both real and nominal
12. To prepare financial statements, you must first prepare a __________.
    a) Ledger
    b) Trial balance
    c) Cashbook
    d) Journal
13. __________ accounts include assets, liabilities, and equity.
    a) Personal
    b) Real
    c) Nominal
    d) Temporary
14. The double-entry system ensures that total __________ equals total credits.
    a) Assets
    b) Debits
    c) Liabilities
    d) Profits
15. Subsidiary books help __________ transactions into categories.
    a) Consolidate
    b) Organize
    c) Eliminate
    d) Record

Evaluation Questions (10 Questions):

1. What steps are involved in the accounting cycle, and how do they relate to each other?
2. How do trade discounts differ from cash discounts?
3. What is the importance of recording transactions in subsidiary books?
4. How do the various types of accounts in the ledger differ from each other?
5. Why is it essential to balance the trial balance?
6. Explain the benefits of offering cash discounts to customers.
7. How can businesses ensure that their ledger accounts are correctly classified?
8. What is the role of the double-entry system in accounting?
9. How does the preparation of financial statements relate to the journal and ledger?
10. Why are discounts important for businesses?

Conclusion (5 mins):

The teacher will summarize the key points covered during the revision, emphasizing the interconnection between the various topics discussed during the term. Students will be encouraged to continue practicing exercises related to these topics in preparation for the upcoming assessments.