Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Accounting
Lesson Topic: explain the reasons for maintaining a provision for doubtful debts
Learning Objective/s:
  • Describe what doubtful debts are and why they arise.
  • Explain the key reasons for maintaining a provision for doubtful debts.
  • Apply the ageing (bracket) method to calculate a provision.
  • Record the journal entries for establishing and using the provision.
  • Analyse how the provision affects the income statement, balance sheet and cash‑flow statement.
Materials Needed:
  • Projector and screen
  • Whiteboard and markers
  • Printed worksheet with ageing schedule data
  • Calculators
  • Sample journal‑entry handout
  • Accounting textbook (IGCSE 0452)
 Introduction:
Begin with a quick story about a local shop struggling with unpaid invoices to hook interest. Review the previous lesson on trade receivables and the matching principle. State that by the end of class students will be able to explain why a provision for doubtful debts is required and demonstrate how to calculate and record it.
Lesson Structure:
  1. Do‑now (5'): Short quiz on receivables and previous journal entries.
  2. Mini‑lecture (10'): Define doubtful debts and outline the five reasons for a provision.
  3. Group activity (15'): Using the printed ageing schedule, calculate the provision amount.
  4. Demonstration (5'): Show the correct journal entries for establishing the provision and for write‑offs/recoveries.
  5. Class discussion (10'): Discuss the impact on the income statement, balance sheet and cash‑flow statement.
  6. Check for understanding (5'): Exit‑ticket – one sentence summarising why the provision is essential.
Conclusion:
Recap the five reasons for maintaining a provision and how the ageing method translates into journal entries. Students complete an exit ticket answering the success criteria. For homework, each student will apply the percentage‑of‑receivables method to a new set of data and prepare the corresponding journal entries.