Lesson Plan

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Lesson Plan
Grade: Date: 18/01/2026
Subject: Accounting
Lesson Topic: calculate and comment on the effect on asset valuations of incorrect treatment
Learning Objective/s:
  • Calculate correct depreciation and asset carrying amounts after capital and revenue treatments.
  • Explain the impact of mis‑classifying expenditures or receipts on asset valuation and profit.
  • Apply a checklist to determine whether an item is capital or revenue.
  • Comment on how mis‑treatment distorts financial ratios and managerial decisions.
Materials Needed:
  • Projector and screen for slides/flowchart.
  • Printed worksheet with classification tables and journal entry examples.
  • Calculators or spreadsheet software.
  • Whiteboard and markers.
  • Sample invoices/receipts for practice.
 Introduction:
Begin with a quick poll: which costs do you think increase a company’s asset value? Review the difference between capital and revenue items covered last week. Today you will learn how incorrect classification changes asset values and profit, and you’ll know the success criteria – correctly calculate depreciation and explain the effects of mis‑treatment.
Lesson Structure:
  1. Do‑now (5'): Classify a mixed list of items as capital or revenue on the worksheet.
  2. Mini‑lecture (10'): Review definitions, show the decision‑flowchart, and introduce the classification checklist.
  3. Guided practice (12'): Work through correct journal entries for purchase, servicing, and sale of a delivery van.
  4. Calculation activity (10'): Compute correct vs. incorrect depreciation for the van and fill in a comparison table.
  5. Group discussion (8'): Analyse impacts on the balance sheet, profit & loss, and key ratios; each group presents one consequence.
  6. Check for understanding (5'): Exit‑ticket quiz with two short questions on the effect of capitalising a revenue cost.
Conclusion:
Summarise that accurate classification ensures true asset values and profit figures. For the exit ticket, students answer a brief question on the effect of capitalising a revenue expense. Assign homework: complete a worksheet re‑classifying mixed items and calculate the resulting depreciation errors.