TWO OCEANS GRADUATE INSTITUTE

LESSON PLANNING

STUDENT
STUDENT Dina Pietersen 30003456
NUMBER
GRADE Grade 10 TERM Term 1
DURATION OF
DATE 5 August 2024 45 Minutes
LESSON
LANGUAGE
SCHOOL Queens College Boys High English
MEDIUM
South Africa. Department of Basic
Education, 2011. National Curriculum
Statement: Curriculum and policy
CAPS
SUBJECT Accounting statement: FET Phase: Accounting: Grades
REFERENCE
10-12. [Online] Available at:
https://www.education.gov.za [Accessed
5 August 2024]
LESSON TOPIC Accounting Equation

GENERAL x Develop problem-solving skills Develop a sense of responsibility Develop communication skills
TEACHING Develop co-operation in Develop research skills Develop environmental
AIMS groups/teams awareness
(Indicate with x Develop and understand
a X) conceptual links

LESSON
Understanding the Accounting Equation and how it transactions effect the business
OBJECTIVE(S)
At the end of the lesson students should understand the following:
 What are assets
EXPECTED  What are liabilities
OUTCOMES  What is owners equity
(What must  Understand the T account in relation to how each of the above either increases or decreases in the
the learners be T Account
able to do at  How transactions affect the accounting equation
the end of the - Assets increase on the debit side and decrease on the credit side
lesson?) - Liabilities increase on the credit side and decrease on the debit side
- Owners equity increases on the credit side and decrease on the debit side

CONTENT (WHAT MUST THE LEARNER LEARN?)

KNOWLEDGE (KEY CONCEPTS,
SKILLS (GENERAL AND SUBJECT-SPECIFIC] VALUES/ATTITUDE
VOCABULARY, ETC)
 Distinuish the difference between
Prior knowledge: various what constitutes and asset,
Assets owners equity and the various forms
Income and expenditures of liabilities.
Liabilities  How to successfully use a T account
 Understand that debits increase on
Concepts: the debt side, while liabilities
Accounting equation increase on the credit side
Accounts receivable  Understand that there is a balance
Accounts payable between the two sides of the

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 accounting equation with regards to
Owners Equity
transactions.
 Understand the double entry
accounting system
RESOURCES (WHAT DO THE TEACHER AND THE LEARNERS NEED?)
White board
Textbook
YouTube video

LEARNING EXPERIENCE AND ENGAGEMENT (CLASSROOM ACTIONS)

LESSON INTRODUCTION (XX MINUTES)

Students will watch a short YouTube video on accounting equation to introduce the topic. The video can be found at:
https://www.youtube.com/watch?v=56xscQ4viWE or
https://www.youtube.com/watch?v=7ykkhepT9aE (This is my favourite)
Teacher: refreshes on various terms that will be used over this lesson. Some terms are familiar as they have been dealt with
in grade 9.

 Debtors
 Creditors
 Inventory
 Property – leased or owned
 Income
 Expenses
 Cash

Time: 5min
PRESENTATION (XX MINUTES):
*ALSO INDICATE LENGTH OF DIFFERENT STEPS DURING THE LESSON PRESENTATION
ACTIONS OF THE TEACHER (TEACHER ACTIVITIES) ACTIONS OF THE LEARNERS (LEARNER ACTIVITIES)

The accounting equation is Assets = Owners Equity +

Liabilities
Every transaction has 2 entries. We call this the double
entry system. Why is it so important? The importance of
having this system is so that we can balance the accounting
equation.
Whatever happens on the left, has to happen on the right
or we can say, for every debit, there must be a
corresponding credit. If we look at a scale (show picture of  Students listen and make notes
scale)  See a visual representation of a scale

Fishel, D. 2024. Accounting Equation: What It Is and How

You Calculate It. [Online] Available at:
2
https://www.investopedia.com/terms/a/accounting-
equation.asp [Accessed 6 August 2024].

Assets are on the left, so everything that the is owned by

the business and Owners Equity and Liablilities are on the
right side, which is everything that the business owes to
someone.
Breaking this down for understanding: What is an:
 Assets: What is an asset and how does a
transaction affect an asset in the accounting
equation. An asset increases on the debit side and
decreases on the credit side.
Assets are property, Cash in bank/petty cash or
anything that can be transferred to cash such as
debtors, stock or inventory, plant property and
equipment. (Property that is owned by the
business)
 Owners Equity: What is owners equity and how
does a transaction affect owners’ equity in the
accounting equation. Owners Equity is anything
that has been invested by the owner into the
company, so this is the book value that is owed to
the owner of the company. If the owner was to
sell his business, he would sell all the assets, pay
all the liabilities and what is left, is the owners
equity. So Assets – Liabilities = Owners Equity. It is
also the retained income/ net profit of the
company. Owners Equity increases on the credit
side and decreases on the debit side
Example of owners equity is anything owed to the
owner such as their capital invested into a
business
 Liabilities: What is a liability and how does a
transaction affect a liability in the accounting
equation. A liability will increase on the credit side
and decrease on the debit side.
Liabilities are made up of anything that is owed to
the business such as creditors accounts, bank
overdrafts, Loans, Salaries and wages and taxes
due to SARS. Question 1
 T/Account – Called a T account because it looks  Give the students the opportunity to draw their T
like a T. It represents a transaction visually which accounts and write out the transaction so that they
makes it easier to balance the accounting have a visual representation of the equation.
equation.  Then students should be able to map the T account
allocate the amounts the equation as follows:

Assets = Owners Equity + Liabilities

Time to see how a transaction effects the accounting R5000 = R3000 + R2000
equation:
Question 1
Lets imagine that you are going to start a business. You Question 2
have a product, Kombucha. You need R5000 to invest into
your business. You invest R3000 of your own saved up cash.  Students should be able to understand that sales is
This cash is transferred to your business account, cash and that cash will increase the Asset side of the
Kombucha Bliss. You also loan R2000 from the ABC bank. equation. Assets will increase by R850+R1000 = R1850
How does this transaction effect your accounting equation? while cash received, even on credit effects owners
How do you ensure that the equation is balanced? equity, so owners equity will increase on the credit side
Remember the accounting equation: Assets = Owners by R1850.
Equity + Liabilities
Assets = Owners Equity + Liabilities
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 R1850 = R1850 + 0
Question 2
Now lets add another transaction: Students can ask questions
You as the business owner sells your product to 2 stores in
town. Question 3
Store A purchases Kombucha to the value of R850 cash and
Store B purchases Kombucha to the value of R1000 but on  Students must be able to implement the double entry
credit. How does this transaction effect our accounting system my debiting the asset and crediting the liability
equation? Assets = Owners Equity + Liabilities
R2500 = R0 + R2500

Students can ask questions

Question 3 Students can read more for own research purposes at:

You now decide to buy an extra fridge, but on credit. You

spend R2500. How does this transaction effect the
accounting equation?

Time: 20 min
CONCLUSION (XX MINUTES)
Teachers recaps on what was learnt during the session by asking questions and answers questions that students may ask.
Students do activities in text book and review each other’s work. The students are encouraged to do some of their own
readings on the subject and find at least one relevant article that can be shared in class.

Time 5min
ASSESSMENT (HOW DO WE KNOW THAT THE LEARNERS HAVE ACHIEVED THE OUTCOME?)
Teacher will ask students to complete the following quiz:
Students will mark each other’s quizzes. Teacher will review how students have marked and determine whether they have
grasped the concepts.

Quiz Name: _________________________

Business Transactions and the Accounting Equation

1. ________________________ is anything of value that is owned or controlled.

2. Property rights are ______________________________ claims to property.
3. __________________________ represents the financial claim to business assets.
4. An economic event for a business is a _____________________________.
5. Accounts ____________________ represents amounts owed to a business.
6. Accounts ____________________ represents amounts owed by a business.
7. When a business uses credit to buy items, it is buying ______________________.
8. A business that earns money from selling goods or services earns ________________.
9. The price a business pays for goods or services is an __________________________.
10. Money taken from the business by the owner for personal use is a ______________________.

Word bank (Not all of the words will be used):

Accounting Equation
Assets
Business Transaction
Credit
Creditor
Equity
Expense
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Financial
Investments
Liabilities
On account
Owner’s Equity
Payable
Property
Property rights
Receivable
Revenue
Withdrawal

15min

Homework:
Students will complete task 1.5 page 19 in the textbook