FABM 1- Lesson PLAN - a. Illustrate the accounting equation (ABM_FABM11- IIIb-c-17) b. Perform operations PDF

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Summary

a. Illustrate the accounting equation (ABM_FABM11- IIIb-c-17)
b. Perform operations involving simple cases with the use of accounting equation (ABM_FABM11-IIIb-c-18)...

Description

Detailed Lesson Plan in Fundamentals of Accountancy, Business and Management 1 I.

Objectives:

At the end of this lesson, the students should be able to: a. Illustrate the accounting equation (ABM_FABM11- IIIb-c-17) b. Perform operations involving simple cases with the use of accounting equation (ABM_FABM11-IIIb-c-18) II. a. b. c.

Subject Matter Topic: The accounting equation (First Quarter) Materials: module, power point, Kahoot application Reference: Fundamentals of Accountancy, Business and Management CG and LM by Mr. Wally Aranas, CPA

III.

Procedure

Teacher’s Activity A. Preliminary Activities 1. Opening Prayer Let us start our class with a prayer. Miss Xyra, please lead us the opening prayer.

Students’ Activity

: Dear Lord and Father of all, Thank you for today…..

2. Greetings Good morning, class!

: Good morning, Ma’am!

3. Attendance Checking and other Classroom Management Let’s check your attendance. Are there absents today?

: None, Ma’am.

That’s good! Now, please ready your modules in FABM and make your tables clean so that we can already start. 4.Review As our review of the previous topic, please click the link: mentimeter.com If you have opened the mentimeter, please give the different concepts about the topic: The different concepts and principles in accounting

Very good! All your answers are correct.

: (The students will ready their modules and make their tables clean.)

: (The students open the link and submit answers.) : Going Concern Concept, Business Entity Concept, Periodicity or Time Period Concept, Monetary Unit Concept, Objectivity Principle, Cost Principle, Accrual Principle, Revenue Recognition Principle, Matching Principle, Consistency Principle, Materiality, Adequate Disclosure Principle

B. Motivation Now, you will be grouped in 2 using our breakout rooms and will answer the given problem using this equation: Asset= Liabilities + Owner’s Equity. Asset Liabilities Owner’s Equity A 600,000 150,000 _________ B 940,000 ___________ 410,000 C ______ 173,700 299,300 D 383,500 ________ 236,500 E 624,000 237,000 _______

: Yes, Ma’am!

: (The students do the activity and go back to the main room after 5 minutes.)

After 5 minutes, we will solve the problem, and check if your answers are correct. You may start now. First Group, how much is the amount of Owner’s equity in Letter A and how di you get your answer.

: P450,000 ma’am. (Asset) 600,000 – (Liability) 150,000 = 450,000

Very Good! (The teacher calls the other groups.) C. Presentation and Discussion of the Lesson All your answers in the group activity are correct. You already have an idea what accounting equation is, and now we will discuss the different types of accounts involve in our accounting equation. Before I discuss our topic today, please read the objectives and everyone should remember them because we should accomplish them as we go on the lesson. Yes, Miss Cassandra. Thank you, Miss Cassandra! In a double entry system, for every debit, there must be a credit, and vice versa. This leads to the basic equation in accounting. The relationship of assets, liabilities and owner’s equity of a business enterprise is expressed in the accounting equation: ASSETS = LIABILITIES + OWNER’S EQUITY The equation shows that the ownership of the assets of the business is divided between the rights of the creditors and the rights of the owners of the business.

a. : Illustrate the accounting equation (ABM_FABM11- IIIb-c-17) b. Perform operations involving simple cases with the use of accounting equation (ABM_FABM11IIIb-c-18)

The creditors have first claim on the assets of the business. The accounting equation could be stated in another way to emphasize the residual interest of the owner over the assets of the business at the point of liquidation. ASSETS – LIABILITIES = OWNER’S EQUITY To include the income and expense as temporary accounts together with drawing, the accounting equation is expanded and restated as follows:

: Civil Rights, Respectable and Bias-free Mass Media, Equality before the law

: (The students listen to the discussion)

ASSETS = LIABILITIES + OWNER’S EQUITY (- Drawing + Income – Expense) Every time a transaction occurs, the elements of the accounting change, however, the basic equality remains. Before giving you an illustration, let us first define the elements of the accounting equation: Asset, Liability and Owner’s Equity. Miss Toni, what is Asset? Very Good!

Can you give an example of asset? Yes, Mr. Roi? Do you have any question? Very Good! (The teacher continues the discussion.) D. Application After gaining knowledge about accounting equation and its elements, open your FABM1 module on page 37. You are given 8 minutes to answer. Determination of Total Assets Using the data below, select the asset accounts and determine the total assets. Accounts Payable 50,000 Cash 150,000 Accounts Receivable 130,000 Land 550,000 Building 1,550,000 Rent Revenue 40,000 Lagayan, Capital 400,000 Equipment 375,000

: These are resources controlled by the enterprises as a result of past transactions or events and from which future economic benefits are expected to flow to the enterprise. : cash and petty cash fund ma’am.

Determination of Total Liabilities Using the data below, select the liability accounts and determine the total liabilities. Accounts Receivable 55,000 Rent Income 90,000 Notes Payable 160,000 Rent Expense 6,000 Land 30,000 Salaries Expense 30,000 Wages Payable 19,000 Accounts Payable 45,000 Let’s check your answers. Who wants to solve the first problem? : Accounts Receivable Cash Land Building Equipment

Yes, Miss Chelsea.

130,000 150,000 550,000 1,550,000 375,000 2,755,000

Great! Thank you, Miss Chelsea. (The teacher calls other student to solve the problem)

E. Generalization This time, please type your answer in our chat box, The Accounting Equation

A B C D E

Asset ______ 940,000 473,000 _______ 624,000

Liabilities 150,000 530,000 _______ 147,000 237,000

Owner’s Equity 450,000 _______ 299,300 236,500 _______

You have 5 minutes to answer. You may now solve and type your answer.

Your answers are correct! That’s great!

A. 600,000 B. 410,000 C. 173,700 D. 383,500 E. 387,000

IV.

Evaluation

Activity 12: The Accounting Equation a. A tailoring company has assets of P600,000 and owner’s equity of P450,000. b. A real estate agency has liabilities of P530,000 and owner’s equity of P410,000. c. A plumbing contractor has assets of P473,000 and liabilities of P173,700. d. An aerobatics company has liabilities of P147,000 and owner’s equity of P236,500. e. A movie theater has assets of P624,000 and liabilities of P237,000. Required: Identify at given element in balance sheet and compute the amount of the missing basic elements of balance sheet. V. Assignment The students will answer on the learning module the exercise on Elements of Accounting Equation.

Prepared by: Christian Mae G. Vino...