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SCHEME OF WORK
Business Studies
Form 3 2026
TERM II
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WK LSN TOPIC SUB-TOPIC OBJECTIVES T/L ACTIVITIES T/L AIDS REFERENCE REMARKS
2 1-2
NATIONAL INCOME.
Meaning of national income, GDP, NDP, GNP & NNP. Per capita income.
Circular flow of income.
By the end of the lesson, the learner should be able to:



Define terms related to national income.
Describe the circular flow of income.
State assumptions made in circular flow of income.
In groups, learners are guided to:



Exposition of new concepts, explanations & discussion.
Exposition of new concepts, explanations & discussion.
text book
Chart: circular flow of income.
New Inventor KLB BOOK III Pg 59-60
New Inventor KLB BOOK III Pg 60-61
2 3
NATIONAL INCOME.
Factors affecting circular flow of income.
By the end of the lesson, the learner should be able to:
Outline factors that affect circular flow of income.
In groups, learners are guided to:
Oral questions;
Exposition of concepts.
text book
New Inventor KLB BOOK III Pg 61-62
2 4
NATIONAL INCOME.
Expenditure approach of determining national income.
By the end of the lesson, the learner should be able to:
Determine national income using expenditure approach.
List down problems associated with expenditure approach.
In groups, learners are guided to:
Exposition of new concepts, explanations & discussion;
Calculations.
Calculators,text book
New Inventor KLB BOOK III Pg 63-64
3 1-2
NATIONAL INCOME.
Income approach of determining national income.
By the end of the lesson, the learner should be able to:
Determine national income using income approach.
List down problems associated with income approach.
In groups, learners are guided to:
Exposition of new concepts, explanations & discussion;
Calculations.
Calculators.
New Inventor KLB BOOK III Pg 64-65
3 3
NATIONAL INCOME.
Output approach of determining national income.
By the end of the lesson, the learner should be able to:
Determine national income using output approach.
List down problems associated with output approach.
In groups, learners are guided to:
Exposition of new concepts;
Probing questions;
Guided discussion;
Calculations.
Calculators.
New Inventor KLB BOOK III Pg 65-66
3 4
NATIONAL INCOME.
Uses of national income statistics.
By the end of the lesson, the learner should be able to:
Outline uses of national income statistics.
In groups, learners are guided to:
Exposition of new concepts;
Probing questions;
Guided discussion.
text book
New Inventor KLB BOOK III Pg 66-67
4 1-2
NATIONAL INCOME.
POPULATION & EMPLOYMENT.
Levels of national income.
Population growth.
By the end of the lesson, the learner should be able to:
Highlight factors that influence the levels of national income.




Outline factors associated with population growth.
List factors that are likely to lead to either high or low birthrates.
Calculate population growth rate.
In groups, learners are guided to:
Exposition of new concepts;
Probing questions;
Guided discussion;
Review exercise.





Brain storming;
Exposition of new concepts;
Probing questions;
Guided discussion;
Calculations.
text book
New Inventor KLB BOOK III Pg 68-70
New Inventor KLB BOOK III Pg 71-72
4 3
POPULATION & EMPLOYMENT.
Optimum population.
By the end of the lesson, the learner should be able to:
Define the term optimum population.
Illustrate the concept of optimum population graphically.
Explain what optimum population depicts.
In groups, learners are guided to:
Exposition of new concepts;
Probing questions;
Guided discussion;
Illustrative curve sketching.
Chart- optimum population.
New Inventor KLB BOOK III Pg 73-74
4 4
POPULATION & EMPLOYMENT.
Under-population.
By the end of the lesson, the learner should be able to:
Cite factors that lead to under population.
State demerits of under -population.
In groups, learners are guided to:
Brain storming;
Guided discussion.
Chart- under population.
New Inventor KLB BOOK III Pg 74-75
5 1-2
POPULATION & EMPLOYMENT.
Over-population.
Young population.
Ageing population.
By the end of the lesson, the learner should be able to:
Cite factors that lead to over population.
State advantages and disadvantages of over-population.
Identify problems associated with ageing population.
State factors that may lead to ageing population.
In groups, learners are guided to:
Brain storming;
Oral questions;
Guided discussion.
Q/A to review young population;
Discussion on ageing and declining populations.
Chart- over population.
text book
New Inventor KLB BOOK III Pg 75-77
New Inventor KLB BOOK III Pg 78-79
5 3
POPULATION & EMPLOYMENT.
Declining population.
By the end of the lesson, the learner should be able to:
State factors that may lead to a declining population.
Outline effects of a declining population.
In groups, learners are guided to:
Q/A to review young population;
Discussion on ageing and declining populations.
New Inventor KLB BOOK III Pg 78-79
5 4
POPULATION & EMPLOYMENT.
Population structure.
By the end of the lesson, the learner should be able to:
Differentiate between a young population and an ageing population.
Define the term population structure.
Explain implications of population size and structure on development.
In groups, learners are guided to:
Probing questions;
Drawing an illustrative population pyramid; Discussion.
Chart- population structure pyramid.,
Diagram of vicious cycle of rapid population growth.
New Inventor KLB BOOK III Pg 80-81
6 1-2
POPULATION & EMPLOYMENT.
Employment and unemployment.
By the end of the lesson, the learner should be able to:
Define the term employment.
Identify types of unemployment.
In groups, learners are guided to:
Exposition and discussion on new concepts associated with unemployment.
text book
New Inventor KLB BOOK III Pg 83-86
6 3
POPULATION & EMPLOYMENT.
Causes of unemployment.
By the end of the lesson, the learner should be able to:
Outline the main causes of unemployment.
In groups, learners are guided to:
Q/A and brief discussion
New Inventor KLB BOOK III Pg 87-88
6 4
POPULATION & EMPLOYMENT.
Solving unemployment problems.
By the end of the lesson, the learner should be able to:
Suggest some possible solutions to unemployment problems in Kenya.
In groups, learners are guided to:
Group discussions & presentations;
Guided discussion.
text book
New Inventor KLB BOOK III Pg 88-90
7 1-2
NET WORTH OF A BUSINESS.
Basic terms used in business.
By the end of the lesson, the learner should be able to:



Define basic terms used in business.
State characteristics of assets / liabilities.
In groups, learners are guided to:



Brief discussion on the terms debtor, creditor, asset, liability and capital.

New Inventor KLB BOOK III Pg 92-95
7 3
NET WORTH OF A BUSINESS.
Basic terms used in business.
By the end of the lesson, the learner should be able to:



Define basic terms used in business.
State characteristics of assets / liabilities.
In groups, learners are guided to:



Brief discussion on the terms debtor, creditor, asset, liability and capital.
New Inventor KLB BOOK III Pg 92-95
7 4
NET WORTH OF A BUSINESS.
Book-keeping Equation.
By the end of the lesson, the learner should be able to:
Identify sources of assets.
Derive and explain the bookkeeping equation.
In groups, learners are guided to:
Use a concrete example to arrive at the book-keeping equation.
Apply the book-keeping equation.
Supervised practice.
text book
New Inventor KLB BOOK III Pg 95-97
8

Half term
9 1-2
NET WORTH OF A BUSINESS.
Balance sheet.
By the end of the lesson, the learner should be able to:
Define the term balance sheet.
Prepare a balance sheet.
In groups, learners are guided to:
Guided preparation of a balance sheet.
Supervised practice.
Assignment.
text book
New Inventor KLB BOOK III Pg 97-98
9 3
NET WORTH OF A BUSINESS.
Importance of a balance sheet.
By the end of the lesson, the learner should be able to:
Explain importance of a balance sheet.
In groups, learners are guided to:
Probing questions;
Discussion.
New Inventor KLB BOOK III Pg 99
9 4
NET WORTH OF A BUSINESS.
Book-keeping equation and balance sheet.
By the end of the lesson, the learner should be able to:
Relate book-keeping equation with balance sheet
In groups, learners are guided to:
Guided discovery;
New Inventor KLB BOOK III pg 99
10 1-2
NET WORTH OF A BUSINESS.
Net worth of a business.
By the end of the lesson, the learner should be able to:
Determine a business net worth using book-keeping equation and a balance sheet.
In groups, learners are guided to:
Discussion.

New Inventor KLB BOOK III Pg 99-100
10 3
NET WORTH OF A BUSINESS.
Topic review.
By the end of the lesson, the learner should be able to:
Answer questions correctly.
In groups, learners are guided to:
Answer numerical questions.
Exercise review.
chart
New Inventor KLB BOOK III Pg 100-102
10 4
BUSINESS TRANSACTIONS
Types of business transactions.
By the end of the lesson, the learner should be able to:


Give examples of business transactions.
Define the term deferred payment.
Give examples of credit transactions.
In groups, learners are guided to:



Probing questions;
Oral questions;
Brief guided discussion.
chart
New Inventor KLB BOOK III Pg 103
11 1-2
BUSINESS TRANSACTIONS
Effects of transactions on the balance sheet.
Changes in capital: Drawing.
By the end of the lesson, the learner should be able to:
Determine the effects of transactions on the balance sheet.



Explain how drawings affect capital.
In groups, learners are guided to:
Worked examples;
Supervised exercise;
Guided discovery.


Worked examples
Supervised practice.
Exercise.
chart
New Inventor KLB BOOK III Pg 103-108
New Inventor KLB BOOK III Pg 108-9
11 3
BUSINESS TRANSACTIONS
Additional investments.
By the end of the lesson, the learner should be able to:
Explain how additional investments affect capital.
In groups, learners are guided to:
Work through an example.
Exercise.
New Inventor KLB BOOK III Pg 109
11 4
BUSINESS TRANSACTIONS
Profit & losses.
By the end of the lesson, the learner should be able to:
Determine the solvency of a business.
In groups, learners are guided to:
Q/A : review meaning of terms profit and loss.
Work through examples.
text book
New Inventor KLB BOOK III Pg 109-110
12 1
BUSINESS TRANSACTIONS
Initial and final capital of a business.
By the end of the lesson, the learner should be able to:
Compute the capital at the end of a given period.
In groups, learners are guided to:
Work through examples;
Group activities;
Guided discussion.
text book
New Inventor KLB BOOK III Pg 111
12 1-2
BUSINESS TRANSACTIONS
THE LEDGER.
Initial and final capital of a business.
Meaning and purpose of a ledger.
By the end of the lesson, the learner should be able to:
Compute the capital at the end of a given period.


Identify features of a ledger.
Explain the purpose of a ledger.
In groups, learners are guided to:
Work through examples;
Group activities;
Guided discussion.




Exposition of new concepts and detailed discussion.
text book


A ledger book.
New Inventor KLB BOOK III Pg 111
New Inventor KLB BOOK III Pg 117
12 3
THE LEDGER.
Rules of recording transactions in ledger accounts.
By the end of the lesson, the learner should be able to:
Record transactions in a ledger A/Cs.
In groups, learners are guided to:
Exposition and summary in tabular form


A ledger.
New Inventor KLB BOOK III 118-120
12 4
THE LEDGER.
Rules of recording transactions in ledger accounts.
By the end of the lesson, the learner should be able to:
Record transactions in a ledger A/Cs.
In groups, learners are guided to:
Exposition and summary in tabular form


A ledger.
New Inventor KLB BOOK III 118-120

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