Lesson Plan

• Distinguish trade discounts from cash discounts and explain their purposes.
• Calculate the amount of a trade discount and a cash discount using given percentages.
• Record trade discounts at the net invoice amount and post cash‑discount entries in the appropriate books of prime entry.
• Analyse a transaction to decide which discount applies and select the correct journal format.

• Projector or interactive whiteboard
• Printed worksheet with discount problems
• Calculators
• Sample invoices (showing list price and discount terms)
• Journal‑entry template handouts
• Accounting textbook (IGCSE 0452 chapter on discounts)

Start with a quick scenario: a student sees a “10 % off” price tag before the invoice is even issued. Ask learners how this differs from a “pay within 10 days for 2 % off” offer. Review that they already know basic journal entries for purchases and sales. Explain that today they will identify each discount type, calculate the amounts, and post the correct entries – the success criteria for the lesson.

1. Do‑now (5') – short quiz on definitions of trade and cash discounts.
2. Mini‑lecture (10') – present definitions, purpose, and key differences using a comparison table.
3. Guided practice – Trade discount (15') – calculate a 10 % trade discount on a sample purchase and record the net journal entry.
4. Guided practice – Cash discount (15') – calculate a 3 % cash discount on a sample sale, then post the discount‑received/allowed entry.
5. Collaborative activity (10') – groups create a flowchart decision diagram for handling discounts.
6. Check for understanding (5') – exit ticket: one new scenario where students identify the discount type and write the correct journal entry.

Recap the distinction: trade discounts affect the invoice amount before recording, cash discounts are recorded only when the payment period is met. Collect the exit tickets to gauge understanding, and assign homework to complete a worksheet with mixed discount problems for additional practice.