STIC - Accounting:
Workplace (Module 1)
Preparing Balance Sheets and Writing Letters  to
Clients (Topic 1)
Content
For the three topics in Module 1, facilitators should know the following:
- how to read and interpret instructions in accounting
cases, problems, and exercises
- how to analyze accounting information and provide solutions
- how to prepare accounting records and reports
- how to write accounting descriptions for journal entries
and records
In addition, familiarity with standard business letters (i.e., format,
punctuation, style, etc.) is required.
Delivery
Make as many copies as necessary of the following handouts  :
- Introductory Handout 1
- Introductory Handout 2
- Handout 1 Matching Terms with Definitions
- Handout 2 More Definitions
- Handout 3 Additional Terminology
- Handout 4 Additional Terminology
- Handout 5 Format of a Business Letter
- Handout 6 Case Study
- Handout 7 Some Standard Phrases for Business Letters
- Handout 8 Model letter (two pages)
- Terminology List (optional)
Materials needed: overhead projector (OHP), OHT (overhead
transparency) 1-5 , chart paper and markers.
Write a list of parts of a letter on chart paper (see pre-task #11).
Methodology
Course Introduction
1. (15 minutes)
Because this is the first class of
the terminology workshop, participants may have some preconceived ideas
and expectations about learning new terminology. For example, they
may assume that a large portion of class time may be spent looking
up words in the dictionary. It is important that participants get a
clear idea of the way the course will be delivered and of the role
of terminology within a task-based curriculum. For this reason, a workshop
outline and two introductory handouts have been prepared for the participants.
Before distributing the information, summarize it for the participants.
Specifically, ask what they think it means to know a word and give
them our definition, perhaps using an example. Also, make sure participants
understand that their participation and involvement is critical to
the success of the workshop - after all, they are the experts. Distribute
Introductory Handouts 1 and 2 as one stapled handout. Go over the outline
as a whole class with the participants reading the introduction and
the facilitator checking for understanding/answering questions. Introduction
Note: Please remind participants to bring calculators
to class for this module. 1. (15 minutes)
Group participants into groups of three
and ask them to brainstorm (for five minutes) different types of accounting
statements, reports, and related vocabulary; have each group write their
thoughts on a sheet of chart paper and share with class. 2. (5 minutes)
Explain to the class that in today's
lesson, participants will have two tasks. The first is writing a classified
or formatted Balance Sheet and computing the current ratio and working
capital position of an engineering company. Afterwards participants will
be asked to write a letter to the client as if they were the advising
accountants. Pre-Tasks
1. (10 minutes)
(Optional)
Have
pairs discuss these questions, written on the board:
- What parts/accounts does a Balance Sheet consist of? How do you present
it?
- Discuss answers with the class.
2. (15 minutes)
(Optional)
Distribute Handout 1 . To make the activity
more challenging, have the participants not use the word bank at the
bottom of the page by folding the handout along the dotted line. Participants
work in pairs to fill in the blanks. If it is too difficult, then the
word bank can be used. Have the participants compare answers with another
pair.
3. (30 minutes)
(Optional)
Show the participants OHT 1 and
ask them to categorize accounts in Ex. 1 as those belonging to Balance
Sheet or Income Statement. Then ask them to prepare a Balance Sheet in
Ex. 2. Discuss verbally and on the board. Have volunteers explain how
they calculated Net Income for October, 200X.
4. (15 minutes)
Elicit from participants types of assets,
liabilities, and types of Balance Sheet forms. Elicit the answers:
- What is a formatted or classified Balance Sheet?
- What is liquidity order?
- What kind of accounts is on the Balance Sheet?
Are they permanent or temporary accounts?
Note: For examples and answers, refer to OHT
2, OHT 3, OHT 4, and Facilitator's Answer Sheet for Handouts 3 and
4.
5. (20 minutes)
Ask participants to match terms with
explanations in Ex. 3 on Handout 2 (pair
work) and write a few accounts for each category (2-5). Review on the
board or OHP and verify against OHT 2 [for types of accounts on Balance
Sheet, and for categories (two to five accounts)]. Answers to Handout 2:
- 1. - c)
- 2. - a)
- 3. - d)
- 4. - b)
- 5. - e)
Account examples are on OHT 4.
6. (20 minutes)
Discuss with class:
- Why are accounts on a Balance Sheet in this
particular form?
- What kind of information does this sequence
give us?
Answers:
Re.1) the categories and layout follow the accounting
equation (i.e., Assets = Liabilities + Owner's Equity) Re. 2) The classified or formatted Balance Sheet example on
OHT 4 gives the following information, in addition to the account balances:
- Which debts must be paid within a year?
- Is there enough cash (or assets) on hand to pay
debts?
- Which debts must be paid in future years?
- Which assets of the business cannot be used easily
to pay debts?
7. (15 minutes)
Have the whole class discuss the following
questions:
- What is the connection between Balance Sheet and
income statement?
- What are the usual balances of asset, liability,
or owner's equity? (in terms of debits/credits)
Review orally or on the board (volunteers give answers).
Answers:
- 1) Net Income closed to capital
- 2) Assets: Debits (Dr)
Liabilities (Cr)
Owner's Equity:
Credits (Cr)
8. (25 minutes)
Distribute Handout 3 and ask participants
to fold it along the dotted line and then negotiate the term for each
definition. If the activity is too difficult, ask participants to unfold
the paper and match given terms with definitions. Partners negotiate
the meaning of unfamiliar words and explanations can be elicited from
the class.
9. (15 minutes)
(Optional)
Distribute Handout 4 and have participants
work in pairs to negotiate the matching terms and definitions. Review orally
with the class.
10. (10 minutes)
Explain that the task for this lesson
consists of two parts. Based on a case study, participants will be asked
to prepare a formatted or classified Balance Sheet and compute the current
ratio and working capital position of the Northern Engineering Company
after purchase of the business. Afterwards, participants will be asked
to write a letter to the client as if they were the advising accountants.
In order to do the second task, participants need to review the format
of a business letter and some standard phrases.
11. (10 minutes)
Distribute Handout 5 and ask participants
to label the ten parts of a typical business letter. Have the following
parts listed (without numbers) on chart paper (answers in brackets):
- reference
initials (9)
- attention line (4)
- letterhead (1)
- salutation
(5)
- carbon
copies (11)
- enclosures
(10)
- inside
address (3)
- date
(2)
- complimentary
closing (7)
- signature,
title, address (8)
- body (6)
Take up as a whole-class activity by using OHT 5.
Task
(45 minutes)
Distribute Handout 6, the Case Study,
and have the participants work in pairs on the tasks. For task #3 (on
Handout 6), distribute Handout 7 as a reference sheet for some standard
phrases to begin and end the letter as well as to advise. The Balance
Sheet should be enclosed with the letter. Assist the participants as
necessary with the letter writing. Explain that the letter should be
as detailed as possible and that they should come to agreement with their
partner as to what they recommend to Ms Baker and why. Post-Task
(20 minutes)
Have participants share their letters
and Balance Sheets with another pair. Use the facilitator's notes to
correct and review all of the tasks. Distribute Handout 8 as a model
of a business letter for the participants to keep for future reference.
How does the letter compare with their own? How would they improve it?
 Downloads
All downloads are in Adobe Acrobat
PDF.
Download a print version of the above lesson plan and related
materials.
Workplace:
Topic 1 [350 KB, 31 pages]
Download the complete Facilitator's Guide and Participant's Workbook.
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