Lesson Plan

• Describe the difference between accrued and prepaid expenses.
• Prepare adjusting journal entries for accrued expenses and prepaid expenses.
• Post adjusting entries to the appropriate ledger accounts and calculate balances.
• Reverse accrued entries when cash is actually paid or received.
• Evaluate the impact of these adjustments on the financial statements.

• Projector or interactive whiteboard
• Printed worksheet with journal‑entry templates
• Sample ledger account sheets
• Calculator
• IGCSE Accounting 0452 textbook
• Sticky notes for student examples

Start with the question, “What should a business record when it incurs an expense but hasn’t paid it yet?” Review prior knowledge of basic journal entries. Explain that today they will learn to record and adjust both accrued and prepaid expenses so that the accounts reflect the true financial position.

1. Do‑now (5') – Students list examples of accrued and prepaid expenses on sticky notes.
2. Mini‑lecture (10') – Define accrued vs. prepaid expenses; show the standard journal‑entry format.
3. Guided practice – Accrued salaries (15') – Teacher models the entry and ledger; students complete a paired worksheet.
4. Guided practice – Prepaid insurance (15') – Demonstrate payment and monthly adjusting entries; students replicate on their sheets.
5. Quick drill – Other payables/receivables (10') – Identify correct accounts for interest payable and receivable.
6. Independent worksheet (15') – Students create journal entries and post to ledgers for mixed scenarios.
7. Check for understanding – Exit ticket (5') – Write one key difference and one adjusting entry from today’s lesson.

Summarise how accrued and prepaid adjustments ensure expenses are matched to the correct period. Collect exit tickets to gauge understanding, and assign homework: complete the textbook practice set on accrued and prepaid expenses and bring any questions to the next class.