Class: Junior Secondary School 2 (JSS2, JSS 2)
Term: 1st Term
Week: 5
Age: 13 years
Duration: 45 minutes
Subject: Business Studies
Curriculum Theme: Business Studies
Previous Lesson: Market, Types, Careers and Functions of Stock Exchange Operators
Topic: Market (Part 2)
Subject Matter: Definition of buying and selling, Meaning of cash and credit sales, Advantages of cash and credit sales, Document used when credit/cash sales or purchase is made, Calculation of:

Cost of sales – Mark-up
Turn over – Gross profit/loss
Net profit/loss.

Specific Objectives

By the end of the lesson, pupils should be able to:

Cognitive Domain:
(a) Define buying and selling.
(b) Distinguish between cash sales and credit sales.
(c) List documents used in sales transactions.
(d) Calculate cost of sales, mark-up, turnover, gross profit/loss and net profit/loss.
Affective Domain:
(a) Appreciate the importance of honesty in buying and selling.
(b) Develop positive attitude towards proper record keeping in sales transactions.
Psychomotor Domain:
(a) Solve numerical problems on mark-up, turnover, gross and net profit.
(b) Fill sample documents used in cash and credit transactions.
Social Domain:
(a) Work cooperatively in groups to discuss the role of cash and credit sales in business.

Reference Materials

The following resources was used in planning this lesson:

9 Years Basic Education Curriculum
Lagos State Unified Scheme of work for Junior Secondary Schools
Investopedia – Market: What It Means in Economics, Types, and Common Features
Relevant Textbooks

Instructional Materials

The teacher will teach this lesson with the aid of:

Sample invoices, receipts, and credit notes
Charts showing cash and credit transactions
A calculator for profit calculations
Whiteboard and markers
Business transaction scenarios

Rationale for the Lesson

This lesson exposes pupils to the practical aspects of business transactions, documents used, and calculations that guide profit determination and sustainability.

Prerequisite/Previous Knowledge

Pupils already have basic knowledge of market and its types, and have been introduced to the concept of buying and selling in earlier lessons.

Lesson Content/Board Summary

Market

Definition of Buying and Selling

Buying is the act of obtaining goods or services in exchange for money or other payment, while selling is the act of offering goods or services to buyers in exchange for money.

The following are the points to note:

Buying and selling are the foundation of trade.
Both activities involve an agreement between the buyer and seller.
They create satisfaction by meeting human wants.

Meaning of Cash and Credit Sales

Cash sales take place when goods are sold and payment is made immediately. Credit sales occur when goods are sold but payment is postponed to a future date.

The following are types of sales:

Cash sales – buyer pays immediately.
Credit sales – buyer pays at a later agreed date.

Advantages of Cash and Credit Sales

Both cash and credit sales have benefits to business people and customers.

The following are advantages of cash sales:

Quick payment is received by the seller.
No risk of bad debts.
Easy to keep records.

The following are advantages of credit sales:

Increases customer patronage.
Encourages customer loyalty.
Helps buyers obtain goods even when they have no immediate cash.

Documents Used in Cash or Credit Sales

Business transactions are recorded using different documents.

The following are examples of documents used:

Invoice – shows details of goods sold.
Receipt – proof of payment received.
Credit note – issued when goods are returned.
Debit note – issued to correct undercharged amounts.

Calculation of Cost of Sales, Mark-up, Turnover, Gross Profit/Loss, and Net Profit/Loss

Business people use calculations to determine the performance of their trade.

The following are the formulas:

Cost of Sales = Opening stock + Purchases – Closing stock.
Mark-up = Profit ÷ Cost of sales × 100.
Turnover = Total sales made during a period.
Gross Profit = Sales – Cost of sales.
Net Profit = Gross Profit – Expenses.

Teaching Methods/Instructional Techniques:

Discussion, Lecture, Explanation, Demonstration, Group Work, Question and Answer

Instructional Procedures

To deliver this lesson, the teacher will adopt the following steps:

Step 1: Introduction

Time: 5 minutes
Teaching Skill: Set Induction
Teacher’s Activity: Teacher asks pupils if they have ever bought items on credit and leads them to recall previous lesson on the market.
Pupils’ Activity: Pupils share experiences and recall past lesson.
Learning Point: Pupils are connected to the concept of cash and credit sales.

Step 2: Buying and Selling

Time: 7 minutes
Teaching Skill: Explanation
Teacher’s Activity: Teacher defines buying and selling and explains their importance.
Pupils’ Activity: Pupils listen and give examples of goods they bought or sold.
Learning Point: Pupils understand the concept of buying and selling.

Step 3: Cash and Credit Sales

Time: 7 minutes
Teaching Skill: Discussion
Teacher’s Activity: Teacher explains cash and credit sales with examples and lists their advantages.
Pupils’ Activity: Pupils compare the two types of sales and state their preferences.
Learning Point: Pupils distinguish between cash and credit sales and their advantages.

Step 4: Documents and Calculations

Time: 12 minutes
Teaching Skill: Demonstration
Teacher’s Activity: Teacher displays sample receipts, invoices, and shows how to calculate cost of sales, mark-up, turnover, gross and net profit.
Pupils’ Activity: Pupils solve simple calculation exercises and identify documents.
Learning Point: Pupils understand business documents and profit calculations.

Step 5: Note-Taking

Time: 5 minutes
Teaching Skill: Explanation
Teacher’s Activity: Teacher dictates or writes the board summary for pupils to copy.
Pupils’ Activity: Pupils copy the notes into their exercise books.
Learning Point: Pupils have a complete written record of the lesson.

Step 6: Evaluation/Review

Time: 6 minutes
Teaching Skill: Questioning
Teacher’s Activity: The teacher evaluates the learning by asking the following questions:

Define buying and selling.
Differentiate between cash and credit sales.
State two advantages each of cash and credit sales.
List two documents used in cash or credit sales.
Calculate the gross profit if sales is ₦50,000 and cost of sales is ₦35,000.
Pupils’ Activity: Pupils respond orally and solve calculation tasks.
Learning Point: Pupils demonstrate understanding of the lesson objectives.

Step 7: Conclusion

Time: 3 minutes
Teaching Skill: Reinforcement
Teacher’s Activity: Teacher summarizes the lesson, emphasizes honesty in transactions, and encourages accuracy in business calculations.
Pupils’ Activity: Pupils listen attentively and ask questions where necessary.
Learning Point: Pupils appreciate the importance of proper sales practices.

Lesson Keywords

Buying – act of obtaining goods or services for payment
Selling – act of offering goods or services for payment
Invoice – document showing details of goods sold
Mark-up – percentage added to cost to determine selling price
Turnover – total sales made during a period

Differentiation

Slower learners will be supported with simpler calculations and guided practice, while advanced learners will handle more complex transactions and lead group work.

Note for teachers using this lesson plan

Ensure pupils participate actively by using real-life examples and practical exercises. Simplify calculations before introducing advanced ones. Relate the lesson to everyday buying and selling.