Class: Senior Secondary School 1 (SS1 / SSS 1)
Term: 3rd Term
Week: 3
Age: 15 years
Duration: 45 minutes
Subject: Book Keeping
Curriculum Theme: Trade
Previous Lesson: Trial Balance: Meaning of Trial Balance, Functions and Posting Rules.
Topic: Trial Balance
Subject Matter: Extracting balances from ledger, Preparation of trial balance

Specific Objectives

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

Cognitive Domain:

Define a Trial Balance.
State the purpose of preparing a Trial Balance.
List the steps involved in preparing a Trial Balance.
Identify types of errors that a Trial Balance does not reveal.

Affective Domain:

Appreciate the importance of accuracy in book-keeping.
Develop an interest in checking the arithmetical accuracy of ledger accounts.

Psychomotor Domain:

Extract balances correctly from given ledger accounts.
Prepare a simple Trial Balance from extracted balances.

Participate actively in class discussions regarding book-keeping principles.

Reference Materials

The following resources were used in planning this lesson:

9 Years Basic Education Curriculum (Book Keeping)
State Unified Scheme of Work (Book Keeping for Senior Secondary Schools)
Anyanwu, A. (2018). Essential Financial Accounting for Senior Secondary Schools. TONAD Publishers.
Frank Wood’s Business Accounting (Latest Edition).

Instructional Materials

The teacher will teach this lesson with the aid of:

A chart showing a sample Trial Balance.
A chart showing various ledger accounts with balances.
Whiteboard/Chalkboard and markers/chalk.
Pupils’ textbooks and notebooks.

Rationale for the Lesson

This lesson helps pupils understand how to check the mathematical accuracy of their ledger entries. Knowing how to prepare a Trial Balance is an important step in preparing final accounts, which gives a true picture of a business’s financial position.

Prerequisite/Previous Knowledge

Pupils are expected to have prior knowledge of the double-entry system, posting transactions to ledger accounts, and balancing off ledger accounts at the end of an accounting period.

Lesson Content/Board Summary

Trial Balance

Definition of Trial Balance

A Trial Balance is a list of all the debit and credit balances extracted from the ledger accounts on a particular date. Its main purpose is to check the arithmetical accuracy of the entries made in the ledger.

Purpose of a Trial Balance

The following are the purposes of a Trial Balance:

To check the arithmetical accuracy of entries in the ledger accounts.
To serve as a summary of all the ledger balances.
To help in locating errors made in the ledger accounts.
To provide a basis for preparing the final accounts (Trading, Profit and Loss Account, and Balance Sheet).

Steps in Preparing a Trial Balance

The following are the steps involved in preparing a Trial Balance:

Balance off all the ledger accounts.
List all the debit balances in the debit column of the Trial Balance.
List all the credit balances in the credit column of the Trial Balance.
Add up both the debit and credit columns.
The total of the debit column must agree with the total of the credit column if there are no arithmetical errors.

Extraction of Balances from Ledger Accounts

To extract balances, one identifies the debit and credit balances from each ledger account after they have been balanced off. Debit balances are typically assets, expenses, and drawings, while credit balances are liabilities, incomes, and capital. Each balance is then transferred to the appropriate column (debit or credit) in the Trial Balance.

Errors Not Revealed by a Trial Balance

The following are types of errors that a Trial Balance will not reveal:

Error of Omission: A transaction completely omitted from the books.
Error of Commission: An entry made in the correct class of account but in the wrong personal account (e.g., debiting Musa instead of Bala).
Error of Principle: A transaction entered in the wrong class of account (e.g., treating a capital expenditure as revenue expenditure).
Compensating Errors: Two or more errors that cancel each other out, so the totals of the Trial Balance still agree.
Complete Reversal of Entries: When both the debit and credit entries for a transaction are made on the wrong sides of the accounts.
Original Entry Error: An error made in the book of original entry and subsequently posted incorrectly to the ledger.

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 and reviews the previous lesson on balancing off ledger accounts. The teacher then introduces the topic by explaining that after balancing accounts, there is a need to check for accuracy, which is where the Trial Balance comes in.
Pupils’ Activity: Pupils respond to greetings, recall previous knowledge, and listen attentively to the introduction of the new topic.
Learning Point: Pupils connect previous learning to the new topic and understand the need for a Trial Balance.

Step 2: Definition and Purpose of Trial Balance

Time: 6 minutes
Teaching Skill: Explanation/Lecture
Teacher’s Activity: The teacher defines a Trial Balance and explains its various purposes using the board summary. The teacher uses the chart of a Trial Balance to illustrate.
Pupils’ Activity: Pupils listen, ask questions for clarification, and take notes.
Learning Point: Pupils understand what a Trial Balance is and why it is prepared.

Step 3: Extraction of Balances from Ledger Accounts

Time: 6 minutes
Teaching Skill: Demonstration
Teacher’s Activity: The teacher uses prepared ledger accounts on a chart or the board to demonstrate how to extract debit and credit balances. The teacher emphasizes which types of accounts typically have debit or credit balances.
Pupils’ Activity: Pupils observe carefully and ask questions about the extraction process.
Learning Point: Pupils learn the practical skill of identifying and extracting balances.

Step 4: Preparation of a Trial Balance

Time: 7 minutes
Teaching Skill: Guided Practice/Demonstration
Teacher’s Activity: The teacher guides the pupils through the steps of preparing a Trial Balance using the extracted balances from Step 3. The teacher demonstrates how to list the balances in the correct columns and total them.
Pupils’ Activity: Pupils follow along, copy the example into their notebooks, and participate in totaling the columns.
Learning Point: Pupils understand the format and process of preparing a Trial Balance.

Step 5: Errors Not Revealed by a Trial Balance

Time: 6 minutes
Teaching Skill: Explanation/Discussion
Teacher’s Activity: The teacher explains the different types of errors that a Trial Balance cannot detect, providing brief examples for each, as outlined in the board summary.
Pupils’ Activity: Pupils listen, take notes, and engage in a brief discussion by asking questions.
Learning Point: Pupils understand the limitations of a Trial Balance in detecting all errors.

Step 6: Class Activity/Practice

Time: 7 minutes
Teaching Skill: Collaborative Learning/Practice
Teacher’s Activity: The teacher provides a simple set of ledger balances (or a few ledger accounts to balance and extract from) for pupils to prepare a Trial Balance individually or in pairs. The teacher moves around to provide assistance.
Pupils’ Activity: Pupils attempt to extract balances and prepare a Trial Balance.
Learning Point: Pupils apply their knowledge and practice the skill of preparing a Trial Balance.

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 a Trial Balance.
State two purposes of preparing a Trial Balance.
List three steps involved in preparing a Trial Balance.
Mention two types of errors that a Trial Balance will not reveal.

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Pupils demonstrate understanding of the lesson.

Step 8: Conclusion

Time: 3 minutes
Teaching Skill: Summarization
Teacher’s Activity: The teacher summarizes the main points of the lesson, reiterating the importance of the Trial Balance as a check on accuracy and a stepping stone to final accounts. The teacher assigns homework: “Prepare a Trial Balance from the following ledger balances…”
Pupils’ Activity: Pupils listen to the summary and copy down the homework assignment.
Learning Point: Pupils consolidate their understanding of the lesson and receive further practice.

Lesson Keywords

Trial Balance – A list of all debit and credit balances extracted from ledger accounts to check arithmetical accuracy.
Ledger Accounts – Books or records where transactions are recorded after being journalized, showing balances.
Debit Balances – Amounts on the debit side of an account that exceed the credit side; typically assets, expenses, drawings.
Credit Balances – Amounts on the credit side of an account that exceed the debit side; typically liabilities, income, capital.
Errors of Omission – Transactions completely left out of the books.
Errors of Principle – Entries made in the wrong class of account.

Differentiation

For pupils who grasp the concept quickly, the teacher can provide more complex ledger accounts or challenge them to identify potential errors. For those who struggle, the teacher can provide simplified examples, offer one-on-one guidance, or encourage peer tutoring.

Note for teachers using this lesson plan

Ensure that pupils have a strong foundation in balancing ledger accounts before introducing the Trial Balance. Practical examples and demonstrations are important for this topic. Encourage pupils to attempt preparing a Trial Balance independently to build confidence. Emphasize that a Trial Balance only checks arithmetical accuracy and does not guarantee the absence of all errors.