Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Business Studies
Lesson Topic: non-current liabilities, e.g. bank loans
Learning Objective/s:
  • Describe the classification of liabilities into current and non‑current.
  • Explain the key features of a bank loan and its accounting treatment.
  • Calculate interest expense and determine the portion of a loan to be re‑classified as current.
  • Analyse the effect of non‑current liabilities on common financial ratios.
Materials Needed:
  • Projector or interactive whiteboard
  • Slide deck with classification table and example balance sheet
  • Printed worksheet with loan journal entries and calculations
  • Calculator or spreadsheet software
  • Whiteboard markers
  • Exit‑ticket slips
 Introduction:
Begin with a quick poll: “Which types of financing have you heard of?” Connect this to prior learning about assets and liabilities, then state that today students will explore long‑term financing, focusing on bank loans, and will be able to record and analyse them by the end of the lesson.
Lesson Structure:
  1. Do‑now (5'): Students list examples of current and non‑current liabilities on sticky notes.
  2. Mini‑lecture (10'): Present classification table and key features of bank loans using slides.
  3. Guided practice (12'): Walk through journal entries for receiving a loan, calculating interest, and making an instalment.
  4. Group activity (10'): Using a sample balance sheet, students determine the current portion of a loan and complete the statement of financial position.
  5. Ratio analysis (8'): Calculate debt‑to‑equity and interest coverage ratios for the sample company.
  6. Check for understanding (5'): Quick quiz via Kahoot or exit ticket.
Conclusion:
Summarise how non‑current liabilities are presented and why re‑classifying the current portion matters. Students complete an exit ticket stating one way a bank loan impacts financial ratios, and homework is to find a real‑world example of a long‑term loan and outline its journal entries.