CHAPTER TWO

COMMON TEACHING METHODS IN ACCOUNTING

Chapter Objectives:
At the end of the chapter, the learner is able to:
 Define teaching methods
 Distinguish the various teaching methods to be employed in Accounting teaching
 State the merits and the demerits of each form of teaching method
 Identify the situations in which a given teaching method can be properly used
 Distinguish the principles deserved by each method for their proper use
2.1. Introduction
Teaching is an art and there are some born teachers, but the majority of the teachers that we have
today are not successful in delivering their acquired knowledge to their learners, and those
teachers who have no inherent flair for teaching are unable to arouse in their learners. The flair
for teaching and the ability to get acquainted with the trends and developments in teaching
learning pedagogy can be improved by knowledge of different methods of teaching. A teacher
has got freedom to choose any of the method of teaching according to his knowledge, interest
and experience. A single method is not preferred for all topics as the best one, but the
combination of methods can be used as more effective.
Teaching is a process of building a person’s mind and character through methodology.
Methodology is the systemic and logical study of the principles guiding scientific investigation.
Methodology as a normative discipline differs sharply from the factual study of scientists at work
as conducted. The term method denotes any procedure which applies some rational order or
systematic pattern to diverse objects. It is the technique used by the teachers for teaching a class,
some subject or a topic. It denotes the logical process used in discovering or in demonstrating the
truth. It should be conceived as a dynamic function of education and not as static aspect of the
process of teaching.
Every subject needs to be taught with a systematic method. This is not for the sake of using the
right method alone but for the best possible understanding of the subject. As the nature of
different subject differs, it is necessary for the understanding of the peculiar characteristics of the
content of the subject involved when we desire to systematize the methodology of teaching

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2.2. Factors to be considered in Choosing an appropriate Method
There is no one best teaching method in teaching any subject including Accounting. The
consideration of some factors that are involved in the choice of an appropriate method need to
first be diagnosed. Some of such factors include:
 The objectives to be achieved
 The psychological readiness of learners
 The size of the class
 Previous educational background of students
 The nature of the topic
 The nature of teaching materials to be used together with the method
The Common Teaching methods in teaching Accounting include:
 The Lecture method
 Demonstration method
 Problem-solving method
 The Project method
 The Case Method of teaching
2.3. The Lecture Method (in Teaching Accounting)
The lecture method is a teaching approach where the teacher talks to many students about a
particular topic or theme, while the students mainly listen and take notes. Sometimes the teacher
dictates notes, and these may be supplemented with handouts or visual aids like PowerPoint
slides.
The main purposes of a lecture are:
1. To convey information clearly.
2. To generate understanding of new concepts.
3. To stimulate student interest in the subject.
4. In a lecture, the teacher plays an active role, explaining concepts, while students are
mostly passive listeners which is why it is sometimes called the “telling method.” Despite
its one-way nature, it remains an important teaching tool in accounting, either as a
prerequisite for other methods or as a supplement.
When to Use the Lecture Method in Teaching Accounting
This method works well when:

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 1. Covering the syllabus quickly – e.g., introducing the whole accounting cycle.
2. Explaining difficult topics – e.g., the rules of debit and credit or adjusting entries.
3. Clarifying tricky points – e.g., differentiating between capital and revenue expenditure.
4. Revising and summarizing lessons – e.g., before examinations.
Merits of the Lecture Method
Economical – Suitable for large classes, requiring minimal resources.
Time-saving – Helps cover the syllabus within the academic schedule and allows time for
revision.
Enhances imagination – A skilled teacher can guide students to imagine real-life
accounting scenarios, like running a business.
Flexible – The teacher can adjust explanations according to student ability, interest, and
prior knowledge.
Engaging delivery – A lively voice, gestures, and real-life accounting examples can make
lessons interesting.
Demerits of the Lecture Method
Memory-based – Focuses too much on recall; practical application may be neglected.
Discourages independence – Limits students’ ability to explore and discover on their
own.
Teacher-centered – Students may lose concentration or fail to fully understand without
interaction.
Too rapid – The pace might be too fast for some learners to connect ideas.
Limits critical thinking – Reduces opportunities to develop reasoning skills essential for
problem-solving in accounting.
2.4. The Demonstration Method
The demonstration method involves showing students how to perform specific tasks or apply
concepts in practice. In accounting, this is especially useful for teaching complex topics such as
preparing journal entries, posting to ledgers, or creating financial statements.
The teacher performs the steps in front of the class for example, recording a sample transaction
in a ledger using tools like PowerPoint, whiteboards, accounting software, or real documents.
This helps students connect theory with practical application.
For effectiveness:

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  The teacher should prepare clear, step-by-step examples.
 Students should observe attentively and take notes.
 A discussion should follow the demonstration to reinforce understanding.
Advantages:
 Makes abstract concepts clearer.
 Builds practical skills and confidence.
 Encourages active observation and participation.
Disadvantages:
 Can be time-consuming to prepare.
 May be less effective if students are passive viewers.
 Requires resources like projectors or accounting software.
2.5. The Problem-Solving Method (in Teaching Accounting)
The problem-solving method is a teaching approach where both the teacher and the students
work together to identify, analyze, and find solutions to specific challenges related to the subject.
In accounting, this could mean tackling tasks such as correcting trial balance errors, resolving
discrepancies in bank reconciliation statements, or determining the best approach to value
inventory.
o This method focuses on active learning, where students are not just receiving
information but actively applying knowledge to overcome real or simulated problems.
Steps in the Problem-Solving Method
o For effective application in accounting lessons, teachers and students should follow these
steps:
o Identify the Problem – Clearly define the accounting issue (e.g., trial balance not
balancing).
o Determine the Causes – Analyze possible reasons (e.g., posting errors, wrong ledger
balances).
o Generate Possible Solutions – Brainstorm alternative approaches to fix the issue.
o Evaluate and Select the Best Solution – Choose the most accurate and practical method.
o Implement the Solution – Apply the chosen correction in the accounting records.
o Review and Get Feedback – Check results and discuss improvements.
Benefits of the Problem-Solving Method in Accounting

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 o Clarifies Complex Concepts – Helps students master challenging areas like depreciation
methods or error corrections.
o Boosts Confidence – Students feel more capable when they can solve accounting
problems independently.
o Improves Retention – Learning by doing makes it easier to remember processes, such as
preparing adjusting entries.
o Encourages Teamwork – Group problem-solving builds communication and
collaboration skills.
Disadvantages of the Problem-Solving Method
o Time-Consuming – Solving accounting problems step-by-step takes more time than
lecturing.
o Relevance Challenges – Finding realistic problems that match the lesson’s objectives
can be difficult.
o High Teacher Preparation – Requires advance planning, materials, and monitoring.
o Need for More Interaction – May require frequent teacher-student or group discussions,
which can be hard in large classes.
Example in an Accounting Class:
If teaching Bank Reconciliation, instead of explaining the format directly, the teacher
can present students with a company’s cash book and bank statement showing
differences. Students then work in groups to identify the causes (e.g., unpresented
cheques, bank charges) and prepare a reconciliation statement step-by-step.
2.6. The Project Teaching Method (Applied to Accounting)
The project method is sometimes confused with the problem-solving method because both
emphasize learning by doing. However, there are key differences. While the problem-solving
method focuses on finding solutions to specific, well-defined issues, the project method involves
an extended, student-led activity designed to address a broader practical challenge over time.
In accounting, the project method allows students to apply accounting knowledge and skills to
real-life or simulated business situations. Projects are planned and executed by the students
(individually or in groups) with teacher guidance, following clear milestones and standards.
Examples of accounting-related projects include:
 Preparing complete financial statements for a mock company over one accounting

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 cycle.
 Designing an internal control system for a small business.
 Creating a budget and variance analysis for a community project.
 Conducting a cost analysis for a manufacturing process.
 Preparing a bank reconciliation and financial report for a simulated client.
The aim is to move beyond classroom theory and engage students in hands-on accounting tasks
that foster independence, critical thinking, and teamwork.
Steps in Applying the Project Method in Accounting
1. Providing a Situation
The teacher presents scenarios to spark interest and encourage project ideas. In accounting, this
could involve discussing business operations, budgeting needs, or record-keeping challenges.
Example: Asking students how a startup might keep accurate financial records for tax purposes.
2. Choosing and Proposing
Students propose project topics based on the given situation. The teacher encourages and guides
them toward viable accounting-related projects without imposing their own choice.
Example: Students choose to design a cash flow forecast for a small shop.
3. Planning
Students outline the project details—tasks, resources, timelines—while the teacher offers
suggestions but does not take control.
Example: Deciding which accounting documents are needed, setting deadlines for data collection
and report preparation.
4. Executing
Students carry out the project, each taking on roles suited to their skills. The teacher monitors
progress and provides help when needed.
Example: One student records journal entries, another prepares ledgers, and another compiles the
trial balance and final statements.
5. Evaluating
The class reviews the completed project, identifying strengths and weaknesses. Students assess
their own work to learn from mistakes.
Example: Reviewing a set of financial statements to check for compliance with accounting
standards.

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6. Recording
Students document all stages of the project planning notes, accounting entries, sources of data,
and final outputs for reference and assessment.
Merits of the Project Method in Accounting
A. Promotes Learning by Doing – Students apply accounting concepts directly, reinforcing
classroom theory.
B. Builds Independence – Students develop self-reliance in managing financial records and
meeting deadlines.
C. Enhances Problem-Solving – Projects naturally require finding practical solutions to real
accounting challenges.
D. Encourages Teamwork – Students collaborate to complete a full accounting cycle or
financial task.
Demerits of the Project Method in Accounting
A. Time-Consuming – Projects require extended periods, which can slow syllabus
coverage.
B. Resource Limitations – May require access to accounting software, financial
documents, or calculators.
C. Not Ideal for All Students – Practical projects may favor highly motivated students and
leave others behind.
D. School Limitations – Real-life accounting environments may not be accessible.
2.7. The Case Study Teaching Method (Applied to Accounting)
The case study teaching method uses real or simulated scenarios to help students observe,
analyze, record, implement, conclude, summarize, and recommend solutions. In accounting,
these cases often revolve around financial transactions, ethical dilemmas, business decisions,
or audit findings.
Students are given a pre-defined data set, financial scenario, or business situation along with
guiding questions. They must study the information, think critically, and present reasoned
conclusions. This method is highly participatory and discussion-based, encouraging students to
connect accounting theory to real-world application while building both critical thinking and
communication skills.
In accounting, case studies can cover:

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  Deciding how to account for a complex transaction (e.g., lease accounting treatment
under IFRS 16).
 Analyzing a company’s financial statements to assess solvency and profitability.
 Investigating variances in a manufacturing budget.
Types of Case Studies in Accounting
1. Directed Case
o Students work with a scenario followed by close-ended questions that can be answered
using accounting theory and course material.
o Example: Given a company’s trial balance, students are asked to identify adjusting
entries needed before preparing financial statements.
o Skills developed: Understanding fundamental accounting principles, accuracy in
record-keeping.
2. Dilemma or Decision Case
o Students face a problem that requires judgment or choice. After deciding, they are
shown the actual historical outcome.
o Example: An accounting manager must decide whether to disclose certain liabilities in
the notes to financial statements, knowing that the decision will affect investor
perception.
o Skills developed: Problem-solving, ethical decision-making, professional judgment.
3. Interrupted Case
o The case is revealed in parts, requiring decisions before moving to the next stage.
o Example: Students receive partial monthly accounting data, prepare interim reports, and
then receive new transactions that require adjusting the earlier work.
o Skills developed: Progressive analysis, adaptability, and attention to detail.
4. Analysis or Issue Case
o Students analyze a situation, review past decisions, and determine why certain
alternatives were or were not chosen.
o Example: Reviewing an accounting scandal (e.g., Enron) and identifying what
accounting controls failed and why.
o Skills developed: Analytical thinking, understanding of internal controls, and
evaluation of compliance with accounting standards.

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How to Apply the Case Study Method in Accounting Lessons
 Select cases aligned with syllabus topics (e.g., depreciation methods, partnership
accounts, cost allocation).
 Encourage students to take ownership—asking their own questions, proposing solutions,
and debating accounting treatments.
 Provide time for reflection, allowing students to consider what they learned and how
they applied it.
 Use both individual and group work to improve participation and peer learning.
Merits of Using Case Studies in Accounting
1. Transforms Observation into Practical Knowledge – Students analyze accounting
records or events and extract lessons that can be applied in future practice.
2. Turns Opinions into Facts – By working with real financial data, students verify claims
and base decisions on verifiable accounting evidence.
3. Relevance to All Learners – Students must make accounting decisions and defend those
using GAAP/IFRS standards.
Demerits of Using Case Studies in Accounting
1. Bias – Student interpretations can be influenced by personal or cultural biases, especially
in ethical accounting cases.
2. Time-Intensive – Analyzing a full set of financial records can take much longer than
traditional exercises.
3. Variable Participation – Some students may dominate the discussion while others
remain passive.
Example in Practice
 Case Topic: “Should ABC Ltd. Recognize Revenue Now or Later?”
 Scenario: Students are given ABC Ltd.’s contract details and financial statements. They
must apply IFRS 15 to decide when to recognize revenue and justify their decision.
 Guiding Questions:
1. What performance obligations are in the contract?
2. Is revenue recognized at a point in time or over time?
3. How will the decision affect the company’s net income?
 Expected Outcome: Students present their conclusion, defend it using IFRS rules, and

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 reflect on the real-life implications.
2.8. The Group Discussion Method
 The Group Discussion Method is an interactive teaching approach in which a group of
students, or an entire class, engages in a structured conversation on a particular topic,
problem, or set of facts. The goal is to foster active participation, exchange of ideas, and
collaborative problem-solving.
Forms of the Group Discussion Method
A. Prescribed Group Discussion Method
In this form, the teacher maintains strong control over the content and process.
 The teacher prescribes the ideas, content, and expected outcomes.
 Necessary interventions are made to ensure the discussion stays on track.
 The teacher summarizes the results at the end of the session.
This form is ideal for beginners who are unfamiliar with group discussions or when
dealing with complex topics that require structure.
B. Guided Group Discussion Method
In this approach, the teacher gives students key points to guide the discussion. Intervention is
minimal, but the teacher may step in if:
 The discussion drifts unnecessarily from the topic.
 Students skip essential discussion procedures.
 A heated or unproductive dialogue develops.
 Certain participants remain silent and need encouragement to share their views.
This method balances guidance and autonomy, making it suitable for moderately
experienced students.
C. Open Discussion Method
This is the most democratic and student-driven form.
 The group decides on titles and rules collectively.
 The teacher does not intervene except to uphold agreed-upon rules.
 The teacher may contribute viewpoints but does not control the discussion.
 Participants evaluate their own discussion results.
At the end, group representatives present the main points to the class for a unified
understanding.

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This method works best with advanced learners who can manage self-directed conversations
responsibly.

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