Lesson Plan

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Lesson Plan
Grade: Date: 25/02/2026
Subject: Accounting
Lesson Topic: prepare ledger accounts and journal entries to record the sale of non-current assets, including the use of disposal accounts
Learning Objective/s:
  • Describe the purpose and effect of depreciation on non‑current assets.
  • Calculate annual depreciation using the straight‑line method.
  • Prepare journal entries for the purchase, periodic depreciation, and sale of a non‑current asset.
  • Use a disposal account to determine the gain or loss on disposal and transfer it to the profit‑and‑loss account.
  • Post the related entries to the appropriate ledger accounts and extract final balances.
Materials Needed:
  • Projector and screen for slides
  • Printed worksheet with the delivery‑van scenario
  • Calculators
  • Accounting textbook or reference sheet on depreciation
  • Ledger and journal entry templates (paper or digital)
  • Whiteboard and markers
 Introduction:

Begin with a quick discussion about how businesses handle the sale of equipment they no longer need, linking it to students’ own experiences with selling old gadgets. Review the concept of depreciation covered in the previous lesson, then outline today’s success criteria: students will correctly journalise a sale, use a disposal account, and post to ledgers.
Lesson Structure:
  1. Do‑now (5'): Students answer a short question on why assets depreciate.
  2. Mini‑lecture (10'): Explain straight‑line depreciation formula and purpose of a disposal account.
  3. Guided example (15'): Walk through the purchase and yearly depreciation entries for the delivery van.
  4. Group activity (15'): Using the worksheet, students prepare the journal entries for the sale and disposal account, then calculate gain/loss.
  5. Ledger posting (10'): Students transfer the journal entries to the asset, accumulated depreciation, and disposal ledgers, extracting balances.
  6. Check for understanding (5'): Quick quiz (exit ticket) on identifying the correct accounts for a disposal transaction.
Conclusion:

Recap the flow from purchase through depreciation to sale and the role of the disposal account in reflecting profit‑or‑loss. For the exit ticket, ask each student to write the journal entry that closes the disposal account. Homework: complete a similar worksheet with a different asset (e.g., computer equipment) and submit the journal and ledger pages.