Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Accounting
Lesson Topic: explain the uses of and differences between capital and current accounts
Learning Objective/s:
  • Describe the purpose and components of capital accounts in a partnership.
  • Explain the function and typical entries of current accounts.
  • Compare and contrast capital and current accounts regarding timing, updates, and impact on profit distribution.
  • Prepare journal entries for profit allocation, interest, and drawings using capital and current accounts.
Materials Needed:
  • Projector or interactive whiteboard
  • Printed handout of partnership account templates
  • Calculators
  • Sample journal‑entry worksheet
  • Markers and whiteboard
 Introduction:
Begin with a quick recall of what a partnership is and how partners contribute capital. Ask students to share examples of businesses they know that operate as partnerships. Explain that today they will learn how capital and current accounts record long‑term investment versus short‑term profit activity, and they will be able to identify which account to use for each transaction.
Lesson Structure:
  1. Do‑now (5') – short quiz on partnership basics.
  2. Mini‑lecture (10') – purpose and entries of capital accounts.
  3. Guided practice (12') – fill in a capital‑account template with sample data.
  4. Mini‑lecture (8') – purpose and entries of current accounts.
  5. Paired activity (15') – record profit, interest, and drawings in current accounts and close them to capital.
  6. Whole‑class review (5') – discuss key differences using the comparison table.
  7. Exit ticket (5') – one‑sentence answer: main difference between capital and current accounts.
Conclusion:
Recap the main points: capital accounts show long‑term equity, while current accounts track periodic profit, interest, and drawings. Collect the exit tickets and remind students that the homework is to complete a full set of journal entries for a new partnership scenario, applying both account types.