Class: Senior Secondary School 1 (SS1 / SSS 1)
Term: 3rd Term
Week: 2
Age: 15 years
Duration: 45 minutes
Subject: Book Keeping
Curriculum Theme: Trade
Previous Lesson: Petty Cash Book: Posting Transactions into Columns.
Topic: Trial Balance
Subject Matter: Meaning of trial balance, Functions of trial balance, Posting rules

Specific Objectives

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

Cognitive Domain:

Define trial balance.
State at least three functions of a trial balance.
Explain the rules for posting various account balances to a trial balance.

Affective Domain:

Appreciate the importance of preparing a trial balance in accounting.
Show interest in identifying and correcting errors in accounting records.

Psychomotor Domain:

Identify correctly whether an account balance is a debit or credit balance for trial balance purposes.
Prepare a simple trial balance from a given list of ledger balances.

Participate actively in class discussions on trial balance.
Collaborate with peers to solve simple trial balance problems.

Reference Materials

The following resources were used in planning this lesson:

9 Years Basic Education Curriculum (Book Keeping)
Lagos State Unified Scheme of Work (Book Keeping)
Longe, O.A. (2018). Fundamentals of Book Keeping for Senior Secondary Schools. University Press PLC.
Adebisi, A.O. (2019). Comprehensive Book Keeping for Senior Secondary Schools. Learn Africa PLC.
Federal Ministry of Education Curriculum Portal
AccountingCoach: Trial Balance Explanation

Instructional Materials

The teacher will teach this lesson with the aid of:

A chart showing a sample trial balance
Whiteboard and markers
Textbooks on Book Keeping
Sample ledger accounts with balances

Rationale for the Lesson

The trial balance is an important step in the accounting cycle as it helps to check the mathematical accuracy of ledger accounts. Understanding this lesson enables pupils to confirm that the double-entry principle has been correctly applied before preparing financial statements.

Prerequisite/Previous Knowledge

Pupils should have knowledge of double-entry principles, ledger accounts, and the process of balancing off ledger accounts.

Lesson Content/Board Summary

Trial Balance

Meaning of Trial Balance

A trial balance is a list of all the balances of ledger accounts (both debit and credit) at a specific date. It is prepared to check the arithmetic accuracy of the entries in the ledger and to ensure that for every debit there is a corresponding credit.

Functions of a Trial Balance

The following are the functions of a trial balance:

It checks the arithmetic accuracy of the entries made in the ledger accounts.
It helps to locate certain types of errors in the ledger accounts.
It provides a summary of all ledger balances in one place.
It serves as a basis for preparing the final accounts (Trading, Profit and Loss Account, and Balance Sheet).
It confirms that the double-entry principle has been observed, as total debits must equal total credits.

Posting Rules for Trial Balance

The following rules are followed when posting balances to the trial balance:

All asset accounts (e.g., Cash, Bank, Debtors, Furniture, Land and Buildings) will have debit balances and are placed on the debit side of the trial balance.
All expense accounts (e.g., Rent, Salaries, Wages, Purchases) will have debit balances and are placed on the debit side of the trial balance.
All liability accounts (e.g., Creditors, Loans, Bank Overdraft) will have credit balances and are placed on the credit side of the trial balance.
All income accounts (e.g., Sales, Discount Received, Commission Received) will have credit balances and are placed on the credit side of the trial balance.
The Capital account will always have a credit balance and is placed on the credit side.
The Drawings account will always have a debit balance and is placed on the debit side.

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 reviews the previous lesson on balancing off ledger accounts. The teacher then introduces the trial balance as the next logical step after balancing accounts, explaining its purpose as a summary and a check.
Pupils’ Activity: Pupils listen attentively, answer questions about balancing accounts, and prepare for the new topic.
Learning Point: Pupils connect the new lesson to their previous knowledge of ledger accounts.

Step 2: Meaning of Trial Balance

Time: 5 minutes
Teaching Skill: Explanation/Definition
Teacher’s Activity: The teacher explains the meaning of a trial balance, using the chart to illustrate its format. The teacher writes the definition on the board.
Pupils’ Activity: Pupils listen, ask questions for clarity, and copy the definition into their notebooks.
Learning Point: Pupils understand what a trial balance is and its basic structure.

Step 3: Functions of a Trial Balance

Time: 8 minutes
Teaching Skill: Discussion/Elaboration
Teacher’s Activity: The teacher discusses the various functions of preparing a trial balance, emphasizing its role in checking arithmetic accuracy and serving as a prerequisite for final accounts. The teacher lists these functions on the board.
Pupils’ Activity: Pupils participate in the discussion, contribute ideas, and copy the functions into their notebooks.
Learning Point: Pupils identify the reasons why a trial balance is prepared.

Step 4: Posting Rules for Trial Balance

Time: 10 minutes
Teaching Skill: Explanation/Categorization
Teacher’s Activity: The teacher explains the rules for placing various account balances (assets, liabilities, income, expenses, capital, drawings) on the debit or credit side of the trial balance, providing clear examples for each category. The teacher writes the rules on the board.
Pupils’ Activity: Pupils listen carefully, ask questions to clarify doubts, and copy the posting rules.
Learning Point: Pupils learn the correct procedure for positioning account balances in a trial balance.

Step 5: Practical Application of Posting Rules

Time: 7 minutes
Teaching Skill: Demonstration/Illustration
Teacher’s Activity: Using the trial balance chart and some sample ledger balances, the teacher demonstrates how to correctly list various accounts (e.g., Cash, Sales, Purchases, Creditors, Bank Loan) on the appropriate side (debit or credit) of a trial balance. The teacher emphasizes that total debits must equal total credits.
Pupils’ Activity: Pupils observe the demonstration, identify the debit and credit sides, and follow the teacher’s example.
Learning Point: Pupils see the practical application of the posting rules in preparing a trial balance.

Step 6: Guided Practice

Time: 5 minutes
Teaching Skill: Activity/Coaching
Teacher’s Activity: The teacher provides a short list of 4-5 account balances (e.g., Rent Paid, Commission Received, Motor Van, Loan from Obi, Drawings) and guides pupils to state orally whether each would be a debit or credit balance in a trial balance.
Pupils’ Activity: Pupils work individually or in pairs to identify the correct side for each given balance and provide their answers.
Learning Point: Pupils practice applying the posting rules and reinforce their understanding.

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 three functions of a trial balance.
Mention two types of accounts that typically have debit balances in a trial balance.
Mention two types of accounts that typically have credit balances in a trial balance.

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/Assignment
Teacher’s Activity: The teacher summarizes the key points of the lesson, reiterating the meaning, functions, and posting rules of a trial balance. The teacher then assigns relevant homework from the textbook.
Pupils’ Activity: Pupils ask final questions, listen to the summary, and copy down the homework assignment.
Learning Point: Pupils consolidate their understanding and prepare for further practice.

Lesson Keywords

Trial Balance – A list of all ledger balances (debit and credit) at a specific date, prepared to check arithmetic accuracy.
Debit Balance – The amount by which the total debits exceed the total credits in an account.
Credit Balance – The amount by which the total credits exceed the total debits in an account.
Ledger Account – A record of financial transactions for a specific asset, liability, equity, revenue, or expense.
Double Entry – An accounting system where every financial transaction has an equal and opposite effect in at least two different accounts.

Differentiation

For pupils who are struggling, the teacher will provide simpler examples and more direct guidance, perhaps focusing on classifying just a few account types. Advanced learners will be challenged with identifying errors that a trial balance would or would not reveal, or preparing a trial balance with a longer list of accounts.

Note for teachers using this lesson plan

Emphasize the foundational nature of the trial balance as a check before preparing final accounts. Use visual aids like the trial balance chart extensively. Encourage pupils to actively participate by asking them to classify accounts as debit or credit balances. Provide additional practice problems if time permits.