Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Accounting
Lesson Topic: explain the importance of preparing income statements and statements of financial position
Learning Objective/s:
  • Describe the purpose of income statements and statements of financial position for a sole trader.
  • Explain how the accounting equation links the two statements.
  • Calculate net profit from revenue, COGS, and operating expenses.
  • Prepare a simple income statement and balance sheet using given data.
  • Analyse how profit affects owner’s equity and business decisions.
Materials Needed:
  • Projector or interactive whiteboard
  • Printed sample income statement and balance sheet handouts
  • Calculator or spreadsheet software
  • Whiteboard markers
  • Worksheets with practice transactions
  • Sticky notes for exit ticket
 Introduction:
Begin with a quick poll: who has seen a business’s profit and loss statement? Explain that these reports are the language of business, letting owners and outsiders gauge performance and financial health. Today we’ll learn why preparing them is essential and how they connect, with clear success criteria: you will be able to explain their purpose, construct simple statements, and interpret the impact on equity.
Lesson Structure:
  1. Do‑now (5') – students list reasons a sole trader might need financial statements.
  2. Mini‑lecture (10') – introduce income statement components and the accounting equation using the projector.
  3. Guided practice (15') – work through the sample income statement and calculate net profit together.
  4. Balance sheet activity (15') – using the same data, fill in a blank statement of financial position.
  5. Relating the statements (10') – discuss how net profit feeds into owner’s equity; think‑pair‑share.
  6. Check for understanding (5') – exit ticket: one sentence why both statements matter.
Conclusion:
Summarise that income statements show performance over a period while the balance sheet captures a snapshot, and profit links the two. For the exit ticket, write one key benefit of each statement. Homework: complete a set of transactions and prepare both statements for a fictitious sole trader.