Lesson Plan

• Define depreciation and explain its purpose in financial reporting.
• Distinguish between cost, salvage value, useful life, and carrying amount of an asset.
• Calculate annual depreciation using straight‑line, declining‑balance, and units‑of‑production methods.
• Record depreciation journal entries and update accumulated depreciation.
• Evaluate the impact of depreciation on the income statement and balance sheet.

• Projector or interactive whiteboard
• Printed worksheet with depreciation examples
• Calculator or spreadsheet software
• Sample asset data cards
• Accounting textbook chapter on non‑current assets

Begin with a quick question: Why don’t we expense the whole cost of a machine when we buy it? Review students’ prior knowledge of assets and the matching principle. Explain that today they will learn to define depreciation, calculate it using different methods, and record the related journal entries. Success will be demonstrated by accurate calculations and correct journal postings.

1. Do‑now (5') – students write brief answers to the opening question on sticky notes.
2. Mini‑lecture (10') – definition of depreciation, key concepts, and why it matters.
3. Demonstration (10') – walk through a straight‑line calculation using a sample asset.
4. Guided practice (12') – pairs complete worksheet covering straight‑line, declining‑balance, and units‑of‑production methods; teacher circulates.
5. Journal entry activity (8') – students record the depreciation entry in their accounting books.
6. Check for understanding (5') – exit ticket: write one sentence describing depreciation’s effect on the balance sheet.

Recap that depreciation spreads an asset’s cost over its useful life and impacts both profit and asset values. Collect the exit tickets to confirm understanding of the journal entry. For homework, assign students to calculate depreciation for a new asset using a method of their choice and prepare the corresponding journal entry.