Lesson Plan

Resources → Subject Notes → Accounting → Notes
Lesson Plan
Grade: Date: 17/01/2026
Subject: Accounting
Lesson Topic: understand the inter-relationship of items in a statement of financial position
Learning Objective/s:
  • Describe the three sections of a Statement of Financial Position (Assets, Liabilities, Owner’s Capital).
  • Explain how the accounting equation links assets, liabilities and capital.
  • Analyse how profit, drawings and loan repayments affect the balance sheet.
  • Prepare a simple Statement of Financial Position for a sole trader using given data.
  • Verify the accuracy of the statement by confirming the accounting equation balances.
Materials Needed:
  • Projector or interactive whiteboard
  • Printed copies of the sample Statement of Financial Position (Megan’s Boutique)
  • Worksheet with practice questions
  • Calculator
  • Whiteboard and markers
  • Accounting equation handout
 Introduction:
Begin with a quick think‑pair‑share: ask students to imagine what a snapshot of a business’s finances looks like. Recall that the previous lesson covered the purpose of a balance sheet. Today they will see how each item on the statement is linked through the accounting equation, and the success criteria is to correctly construct and balance a Statement of Financial Position for a sole trader.
Lesson Structure:
  1. Do‑now (5’) – Students list items they think belong to assets, liabilities, or capital on sticky notes; teacher groups them.
  2. Mini‑lecture (10’) – Introduce the accounting equation and the three sections, using the Megan’s Boutique example on screen.
  3. Guided practice (12’) – Walk through completing the sample statement, highlighting how profit and drawings affect capital.
  4. Independent activity (15’) – Students complete the practice question for Jane’s graphic‑design business and then verify the equation.
  5. Concept check (5’) – Quick quiz (Kahoot or show of hands) on why the equation must always balance.
  6. Summary & exit ticket (3’) – Learners write one sentence describing how a loan repayment changes the statement.
Conclusion:
Recap the key links between assets, liabilities and owner’s capital and how transactions move amounts between them. For the exit ticket, learners note one way a profit or drawing impacts the balance sheet. Assign homework to draft a Statement of Financial Position for a hypothetical sole trader using a new set of figures.