Lesson Plan

• Describe the relationship between opening capital, drawings, additional capital and closing capital.
• Calculate profit or loss for a year using the capital‑movement formula.
• Analyse practice scenarios to determine the correct profit or loss and identify common errors.

• Projector or interactive whiteboard
• Printed worksheet with practice questions
• Calculator for each student
• Whiteboard and markers
• Example financial statement handout

Start with a quick question: How can we determine a business's profit if we only know the changes in the owner's capital? Review the concept of capital and drawings from previous lessons. By the end of the lesson, students will correctly apply the capital‑movement formula to calculate profit or loss.

1. Do‑Now (5') – Solve a simple profit/loss scenario using given capital figures to activate prior knowledge.
2. Mini‑lecture (10') – Review capital, drawings, additional capital and derive the formula Profit = Closing – Opening + Drawings – Additional Capital, with board examples.
3. Guided practice (12') – Work through the XYZ Ltd example together, highlighting each step and common mistakes.
4. Independent practice (15') – Students complete two practice questions on the worksheet, using calculators; teacher circulates to check understanding.
5. Peer check (5') – Pairs exchange answers, justify calculations, and correct any sign errors.
6. Quick check (3') – Exit ticket: write the profit/loss result for a new set of figures shown on the board.

Summarise how the capital‑movement formula converts capital changes into profit or loss. Collect exit tickets to gauge understanding. For homework, assign three additional incomplete‑record problems from the textbook and remind students to double‑check the sign of their result.