Lesson Plan

• Describe why an adjusting entry is required when the owner withdraws stock for personal use.
• Explain the accounting principle that treats owner’s withdrawals as a reduction in capital.
• Calculate the cost of goods taken and prepare the correct journal entry (debit Drawings, credit Stock).
• Analyse the impact of the adjustment on closing stock and the statement of financial position.

• Projector or interactive whiteboard
• Accounting textbook/worksheet on adjustments
• Printed handout of the journal‑entry example
• Calculator for each pair
• Whiteboard and markers
• Exit‑ticket slips

Imagine the shop owner slipping a few items from the store for personal use. You already know how to record purchases and calculate closing stock, so today you will see how that personal use affects the accounts. By the end of the lesson you will be able to identify the cost of the withdrawn goods and record the proper adjusting entry.

1. Do‑now (5'): Quick quiz on closing stock calculations from the previous lesson.
2. Mini‑lecture (10'): Explain why an adjustment is needed and the principle of owner’s withdrawals.
3. Guided practice (12'): Walk through the step‑by‑step procedure using the worked example; students calculate the value of goods taken.
4. Independent practice (10'): Pairs complete a similar withdrawal problem on the worksheet.
5. Check for understanding (8'): Discuss common mistakes and run through the quick revision checklist.
6. Summary & exit ticket (5'): Each student writes the adjusting journal entry for a new scenario on a slip.

We reviewed the purpose of the adjustment, the correct journal entry, and its effect on the final accounts. Hand in your exit‑ticket entry as a quick retrieval check. For homework, complete the worksheet with two additional owner‑withdrawal scenarios and bring the calculations to the next class.