Lesson Plan

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Lesson Plan
Grade: Date: 18/01/2026
Subject: Accounting
Lesson Topic: distinguish between and account for capital receipts and revenue receipts
Learning Objective/s:
  • Distinguish between capital receipts and revenue receipts and explain their impact on the balance sheet and profit‑and‑loss account.
  • Classify expenditures as capital or revenue and justify the classification using appropriate criteria.
  • Record correct journal entries for typical capital and revenue receipts and expenditures.
  • Analyse how capital and revenue items affect financial statements over time.
Materials Needed:
  • Projector or interactive whiteboard
  • Printed worksheet with classification and journal‑entry tasks
  • Sample journal entry handouts
  • Calculator for each student
  • Whiteboard and markers
  • Accounting textbook or digital resource
 Introduction:
Begin with a quick quiz question: “When a company sells an old machine, does the cash received affect profit?” This activates prior knowledge of profit calculation. Review the difference between assets and revenue from the previous lesson. Today students will be able to correctly classify receipts and expenditures as capital or revenue and produce the appropriate journal entries.
Lesson Structure:
  1. Do‑now (5') – Students write their answer to the quiz question on sticky notes and share briefly.
  2. Mini‑lecture (10') – Define capital vs. revenue expenditures and receipts, using the comparison tables from the notes.
  3. Guided practice (12') – In pairs, students classify a set of transactions on the worksheet and justify their decisions.
  4. Demonstration (8') – Teacher models journal entries for a capital receipt (bank loan) and a revenue receipt (cash sale) on the board.
  5. Independent activity (10') – Students complete journal‑entry exercises for several given transactions.
  6. Check for understanding (5') – Exit ticket: list two key differences between capital and revenue receipts.
Conclusion:
Summarise that capital items affect the balance sheet while revenue items flow through the profit‑and‑loss account. Review the key decision points from the flowchart diagram. Collect the exit tickets and assign homework to complete additional journal‑entry problems from the textbook. Remind students to bring their worksheets for the next lesson.