| Lesson Plan |
| Grade: |
Date: 25/02/2026 |
| Subject: Business |
| Lesson Topic: the contents of a statement of profit or loss: revenue, cost of sales, gross profit, expenses, profit from operations (operating profit), taxation, profit for the year, dividends and retained earnings |
Learning Objective/s:
- Describe each component of a profit or loss statement and its purpose.
- Calculate gross profit, operating profit, profit after tax and retained earnings from given data.
- Interpret how revenue, costs, taxation and dividends affect overall profitability and retained earnings.
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Materials Needed:
- Projector and screen
- Whiteboard and markers
- Printed profit‑and‑loss statement template
- Calculator or spreadsheet software
- Sample financial data handout (XYZ Ltd)
- Worksheet with calculation exercises
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Introduction:
Begin with the question, “What does a company’s profit and loss statement reveal about its performance?” Review students’ prior knowledge of revenue and basic costs. Explain that by the end of the lesson they will be able to identify each line item, perform the required calculations, and explain what the results indicate.
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Lesson Structure:
- Do‑now (5') – Students list financial statements they know; teacher confirms focus on the profit‑and‑loss statement.
- Direct instruction (10') – Present the vertical format, define each component with real‑world examples.
- Guided practice (15') – Walk through the XYZ Ltd worked example, calculating each line together on the board.
- Collaborative activity (15') – Pairs complete a worksheet using new data, calculate all components, then check answers.
- Interpretation discussion (10') – Groups discuss what the results reveal about efficiency, tax impact, and dividend policy; teacher facilitates.
- Quick check (5') – Exit ticket: write one key insight about how retained earnings are derived.
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Conclusion:
Recap the flow from revenue through to retained earnings and why each subtraction step matters. Collect exit tickets, address any lingering questions, and assign homework: students prepare a profit‑and‑loss statement for a fictional business using a new set of figures.
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