Lesson Plan

• Describe the difference between irrecoverable (bad) debts and provisions for doubtful debts.
• Explain the journal entries required to write off bad debts and to adjust a provision.
• Apply the year‑end adjustment process to calculate the required provision using a percentage method or an aging schedule.
• Prepare adjusted trial‑balance entries and illustrate their impact on the balance sheet and profit‑and‑loss account.

• Projector and screen for slides
• Whiteboard and markers
• Printed worksheet with a sample trade‑receivables ledger
• Calculator (or spreadsheet)
• Accounting software demo (optional)
• Handout summarising journal‑entry formats for bad debts and provisions

Begin with a quick “What happens when a customer can’t pay?” poll to activate prior knowledge. Review the concept of trade receivables and remind students of the matching principle. State that by the end of the lesson they will be able to adjust the accounts for bad debts and doubtful‑debt provisions accurately.

1. Do‑now (5'): Students answer a short quiz on the difference between bad debts and provisions.
2. Mini‑lecture (10'): Explain irrecoverable debts, provisions, and the underlying accounting principles.
3. Guided practice (15'): Demonstrate journal entries for writing off a specific bad debt and for adjusting a provision; students complete a similar example on their worksheet.
4. Group activity (15'): Using a provided receivables ledger, groups calculate the required provision (percentage method) and record the adjusting entry.
5. Check for understanding (5'): Whole‑class review of answers and clarification of common errors.

Recap the four‑step year‑end adjustment process and highlight how the provision improves the realism of the balance sheet. Students complete an exit ticket stating one journal entry they would record for a bad debt and one for a provision adjustment. For homework, assign a problem set requiring calculation of provisions using an aging schedule.