Lesson Plan

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Lesson Plan
Grade: Date: 18/01/2026
Subject: Accounting
Lesson Topic: make adjustments to financial statements as detailed in 5.1 (sole traders)
Learning Objective/s:
  • Describe the structure of partnership accounts and the purpose of capital, current, and profit & loss appropriation accounts.
  • Calculate goodwill and adjust capital accounts on admission, retirement, or dissolution of a partnership.
  • Prepare journal entries for partnership adjustments including goodwill treatment and profit‑sharing ratio changes.
  • Apply the steps to re‑calculate profit‑sharing ratios after changes in partnership composition.
Materials Needed:
  • Projector or interactive whiteboard
  • Printed worksheet with partnership scenarios
  • Calculator for each student
  • Sample journal entry handout
  • Whiteboard and markers
  • Laptop with accounting software (optional)
 Introduction:
Begin with a quick recap of sole‑trader adjustments, then pose a real‑world scenario where two friends decide to form a partnership. Ask students to consider what new accounting entries are required when a partner joins or leaves. Explain that by the end of the lesson they will be able to adjust partnership financial statements confidently and will produce correct journal entries.
Lesson Structure:
  1. Do‑Now (5') – Short quiz on sole‑trader adjustments to activate prior knowledge.
  2. Mini‑lecture (10') – Review partnership account structure and key terms (capital, current, profit‑sharing ratio, goodwill).
  3. Guided practice (15') – Walk through admission of a new partner, calculate goodwill, adjust capital accounts, and record journal entries using the provided example.
  4. Collaborative activity (15') – In pairs, work on a retirement scenario, determine goodwill payout, settle capital, and draft journal entries; teacher circulates for feedback.
  5. Whole‑class debrief (10') – Groups share solutions; discuss common errors and re‑calculating profit‑sharing ratios.
  6. Exit ticket (5') – Students write one step they found most challenging and how they would apply it to a dissolution case.
Conclusion:
Summarise the four key adjustment steps—valuation, goodwill treatment, capital account updates, and profit‑sharing recalculation. Collect the exit tickets to gauge understanding and assign a homework task to complete a dissolution worksheet. Remind students to bring their calculators for the next lesson on partnership profit distribution.