Class: Senior Secondary School 1 (SS1 / SSS1)
Term: 1st Term
Week: 4
Age: 15 years
Duration: 45 minutes
Subject: Book Keeping
Curriculum Theme: Trade
Previous Lesson: Career Opportunities in Book Keeping: Career Paths and Beneficiaries.
Topic: Assets and Liabilities
Subject Matter: Meaning of assets, Classes of assets by permanency and liquidity

Specific Objectives

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

Cognitive Domain:

Define the term ‘assets’.
List the different classes of assets by permanency and liquidity.
Explain the characteristics of fixed and current assets.

Affective Domain:

Appreciate the importance of classifying assets for proper financial reporting.
Show willingness to identify various assets found in a business.

Psychomotor Domain:

Differentiate between fixed and current assets with examples.
Categorize given items into their appropriate asset classes.

Work collaboratively to identify and discuss examples of different asset types.

Reference Materials

The following resources were used in planning this lesson:

9 Years Basic Education Curriculum for Business Studies.
State Unified Scheme of Work for Senior Secondary Schools.
Adeleke, I. O. (2018). Essential Financial Accounting for Senior Secondary Schools. Tonad Publishers.
https://www.google.com/search?q=assets+and+liabilities+for+sss1+bookkeeping
https://nigerianscholars.com/lesson-notes/book-keeping-lesson-note-for-sss1-first-term/

Instructional Materials

The teacher will teach this lesson with the aid of:

A chart showing a list of various assets.
Whiteboard and markers.
Pictures of different business items (e.g., building, cash, computers).

Rationale for the Lesson

Understanding assets is important because it helps pupils know what a business owns and how these possessions contribute to its operations and financial health. This knowledge enables pupils to properly analyze a business’s financial position and make informed decisions.

Prerequisite/Previous Knowledge

Pupils are assumed to have basic knowledge of business concepts and the meaning of a business transaction from previous lessons.

Lesson Content/Board Summary

Assets and Liabilities

Meaning of Assets

Assets are economic resources owned by a business that are expected to provide future economic benefits. They represent what a business owns and can be used to generate revenue or value.

Classes of Assets by Permanency and Liquidity

Assets can be classified based on their permanence (how long they are held) and liquidity (how easily they can be converted into cash).

Fixed Assets (Non-Current Assets)

Fixed assets are assets acquired for long-term use in the business and are not intended for immediate sale. They are expected to provide benefits for more than one accounting period (usually over a year).

The following are characteristics of fixed assets:

They are used for the operation of the business.
They are not easily converted into cash.
They have a relatively long useful life.

The following are examples of fixed assets:

Land
Buildings
Machinery
Furniture and Fittings
Motor Vehicles

Current Assets

Current assets are assets that are expected to be converted into cash or used up within one accounting period (usually within one year).

The following are characteristics of current assets:

They are easily convertible into cash.
They are held for a short period.
They are used for the day-to-day operations of the business.

The following are examples of current assets:

Cash in Hand
Cash at Bank
Inventory (Stock)
Debtors (Accounts Receivable)
Prepayments

Relationship between Permanency and Liquidity

Permanency and liquidity are closely related in asset classification:

Fixed Assets: These are considered less liquid because they are not easily converted to cash without disrupting business operations or incurring significant loss. They are permanent in nature.
Current Assets: These are considered highly liquid because they are either already cash or can be converted into cash quickly (within one year). They are temporary or circulating in nature.

Teaching Methods/Instructional Techniques

Discussion, Lecture, Demonstration, Question and Answer, Visual Aids

Instructional Procedures

Step 1: Introduction

Time: 5 minutes
Teaching Skill: Set Induction
Teacher’s Activity: The teacher greets the pupils, reviews the previous lesson briefly, and then asks pupils what they think a business owns. The teacher introduces the topic “Assets and Liabilities” as what a business owns and owes.
Pupils’ Activity: Pupils respond to questions and listen attentively.
Learning Point: Pupils are introduced to the topic and relate it to what a business owns.

Step 2: Meaning of Assets

Time: 10 minutes
Teaching Skill: Explanation/Definition
Teacher’s Activity: The teacher explains the meaning of assets as economic resources owned by a business that provide future economic benefits. The teacher gives simple examples like cash, buildings, and vehicles.
Pupils’ Activity: Pupils listen, take notes, and ask questions for clarification.
Learning Point: Pupils understand the definition of assets.

Step 3: Classes of Assets by Permanency

Time: 10 minutes
Teaching Skill: Classification/Elaboration
Teacher’s Activity: The teacher introduces the two main classes of assets: Fixed Assets and Current Assets. The teacher defines Fixed Assets, explaining they are for long-term use and not for sale.
Pupils’ Activity: Pupils listen, note down the definitions, and provide initial thoughts on examples.
Learning Point: Pupils identify the two main classes of assets and understand what fixed assets are.

Step 4: Examples of Fixed Assets

Time: 5 minutes
Teaching Skill: Illustration/Examples
Teacher’s Activity: Using the chart or pictures, the teacher provides and explains various examples of fixed assets such as land, buildings, machinery, and motor vehicles.
Pupils’ Activity: Pupils observe the chart, identify the examples, and write them down.
Learning Point: Pupils can identify and list examples of fixed assets.

Step 5: Current Assets and their Examples

Time: 5 minutes
Teaching Skill: Explanation/Illustration
Teacher’s Activity: The teacher defines Current Assets as assets easily convertible to cash within one year. The teacher then gives examples like cash, bank balance, stock, and debtors.
Pupils’ Activity: Pupils listen, take notes, and ask questions about the examples.
Learning Point: Pupils understand current assets and can provide examples.

Step 6: Relationship between Permanency and Liquidity

Time: 5 minutes
Teaching Skill: Connection/Analysis
Teacher’s Activity: The teacher explains how fixed assets are less liquid (not easily converted to cash) and current assets are highly liquid (easily converted to cash), linking the concept of permanency to liquidity.
Pupils’ Activity: Pupils listen and grasp the relationship between how long an asset is held and how easily it can become cash.
Learning Point: Pupils understand the connection between asset permanency and liquidity.

Step 7: Evaluation/Review

Time: 5 minutes

Teaching Skill: Questioning/Assessment

Teacher’s Activity: The teacher evaluates the learning by asking the following questions:

Define assets in your own words.
Mention two classes of assets based on permanency.
State three examples of fixed assets.
List three examples of current assets.

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Pupils demonstrate understanding of the lesson.

Step 8: Conclusion

Time: 5 minutes
Teaching Skill: Summarization/Consolidation
Teacher’s Activity: The teacher summarizes the key points of the lesson, emphasizing the definition of assets and their classification into fixed and current assets. The teacher assigns homework: “Differentiate between fixed and current assets, providing five examples for each.”
Pupils’ Activity: Pupils listen to the summary and copy the homework.
Learning Point: Pupils consolidate their understanding of assets and their classes.

Lesson Keywords

Assets – Economic resources owned by a business that provide future economic benefits.
Fixed Assets – Assets held for long-term use, not for resale, and expected to provide benefits for more than one year.
Current Assets – Assets expected to be converted into cash or used up within one year.
Permanency – The characteristic of an asset to be held for a long period.
Liquidity – The ease with which an asset can be converted into cash.

Differentiation

For pupils who grasp concepts quickly, the teacher can ask them to research and present examples of intangible fixed assets. For pupils who need more support, the teacher will provide additional visual aids and simplified examples, ensuring they can identify at least one fixed and one current asset.

Note for teachers using this lesson plan

Ensure to use real-life examples relevant to the pupils’ environment to make the concepts more relatable. Encourage active participation and group discussions during the classification of assets to foster collaborative learning. Emphasize the long-term vs. short-term nature of assets.