Lesson Plan

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Lesson Plan
Grade: Date: 18/01/2026
Subject: Accounting
Lesson Topic: distinguish between and account for capital expenditure and revenue expenditure
Learning Objective/s:
  • Distinguish capital expenditure from revenue expenditure and capital receipts from revenue receipts.
  • Explain the accounting treatment and profit impact of each type of expenditure and receipt.
  • Prepare correct journal entries for capital and revenue transactions.
  • Evaluate when a repair or improvement should be capitalised.
  • Apply the classification rules to solve a typical exam problem.
Materials Needed:
  • Projector or interactive whiteboard
  • Printed handout with comparison tables and sample problem
  • Worksheet for classification exercises
  • Calculator for depreciation calculations
  • Whiteboard and markers
  • Journal‑entry template sheet
 Introduction:

Begin with a quick poll: “If your school bought a new computer, is that a capital or revenue expense?” Connect to students’ prior knowledge of assets and expenses, then outline that today they will learn how to classify spending and record it correctly. Success will be measured by accurate journal entries and a clear decision‑making flowchart.
Lesson Structure:
  1. Do‑Now (5'): Students list examples of school purchases and label them as capital or revenue.
  2. Mini‑lecture (10'): Define capital vs revenue expenditure/receipt, show comparison table and discuss impact on profit and balance sheet.
  3. Guided practice (12'): Demonstrate journal entries for a capital purchase and a revenue expense on the board.
  4. Group activity (10'): Using the handout, groups classify a set of transactions and justify their decisions.
  5. Independent worksheet (10'): Students complete the sample problem (van purchase & overhaul) and calculate depreciation.
  6. Check for understanding (5'): Quick quiz via Kahoot or show of hands on key distinctions.
  7. Exit ticket (3'): Write one key difference between capital and revenue expenditure.
Conclusion:

Recap the five main differences between capital and revenue items and emphasise the decision‑making flowchart. Collect exit tickets as a retrieval check and assign homework: complete a worksheet that requires students to classify additional transactions and prepare the corresponding journal entries.