Lesson Plan

• Describe the key interested parties and why trade payables matter to them.
• Explain how trade payables are recorded using journal entries.
• Calculate Days Payable Outstanding (DPO) from given financial data.
• Analyse the impact of DPO on cash‑flow management and stakeholder relationships.
• Evaluate how owners, creditors and suppliers use DPO information in decision‑making.

• Projector and screen
• PowerPoint slides covering interested parties and DPO
• Printed handouts of journal‑entry examples
• Calculator for each student
• Worksheet with DPO calculation problems
• Whiteboard and markers

Begin with a quick poll: “What could happen if a business consistently pays its suppliers late?” Connect responses to prior knowledge of journal entries for purchases on credit. Explain that today’s success criteria are to record trade payables correctly and to compute and interpret DPO.

1. Do‑now (5') – short quiz on journal entries for credit purchases.
2. Mini‑lecture (10') – introduce interested parties and why trade payables matter.
3. Guided practice (15') – students record three sample transactions in their journals.
4. Calculation activity (10') – work through the DPO formula using the provided data set.
5. Group discussion (10') – analyse how high or low DPO affects suppliers, creditors and owners.
6. Check for understanding (5') – exit ticket: one sentence summarising the key purpose of DPO.

Recap the steps for recording trade payables and the DPO calculation, highlighting its relevance to different stakeholders. Students complete an exit ticket and are assigned the worksheet to calculate DPO for a real‑world company as homework.