Title | FABM-1ST- Quarter- Edited-converted |
---|---|
Course | Accounting |
Institution | Cagayan State University |
Pages | 49 |
File Size | 1.7 MB |
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11 FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1 First Quarter
LEARNING ACTIVITY SHEETS
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COPYRIGHT PAGE Learning Activity Sheet in Fundamentals of Accountancy, Business and Management Grade 11 Copyright @ 2020 DEPARTMENT OF EDUCATION Regional Office No. 02 (Cagayan Valley) Regional Government Center, Carig Sur, Tuguegarao City, 3500 “No copy of this materials shall subsist in any work of the Government of the Philippines. However, prior approval of the government agency or office wherein the work is created shall be necessary for exploitation of such work for profit.” This material has been developed for the implementation of the K to 12 Curriculum through the Curriculum and Learning Management Division (CLMD). It can be reproduced for educational purposes and the source must be acknowledged. Derivatives of the work including creating an edited version, an enhancement of supplementary work are permitted provided all original works are acknowledged and the copyright is attributed. No work may be derived from the material for commercial purposes and profit.
Consultants: Regional Director Assistant Regional Director Schools Division Superintendent Assist. Schools Division Supt. Chief Educ. Supervisor, CLMD Chief Education Supervisor, CID Development Team Writers Content Editors
Focal Persons
ESTELA L. CARIŇO, EdD, CESO IV RHODA T. RAZON, EdD, CESO V MADELYN L. MACALLING, PhD, CESO VI EDNA P. ABUAN, PhD DANTE J. MARCEL, PhD, CESO VI OCTAVIO V. CABASAG, PhD RODRIGO V. PASCUA, EdD
: Richel A. Culam, Marcris T. Domingo,Brain Win L.Garcia, Fay P. Managuelod,Cyril M. Pacunana, and Carolyn M. Ramones : Inocencio T. Balag,EPS Math, SDO Isabela Cyril M. Pacunana, Claudine Sevilleja, Mary Mendoza : Inocencio T. Balag, Division EPS- Mathematics, Isabela Ma. Cristina Acosta, Division EPS-LR Isagani R. Duruin, PhD., Regional EPS- Mathematics Rizalino G. Caronan, Regional EPS- LRMDS Printed by DepEd Regional Office No. 02 Regional Center, Carig Sur, Tuguegarao City
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TABLE OF CONTENTS Competency
Page No.
Define Accounting
1
The Learner Describe the Nature of Accounting
7
The Learner Narrate the History/Origin of Accounting
11
Define External Users and Gives Examples Define Internal Users and Give Examples
16
Explain the Varied Accounting Concepts and Principles Solve Exercises on Accounting Principles as Applied in Various Cases
23
The Learners shall be Able to Illustrate the Accounting Equation Perform Operations Involving Simple Cases with the use of the Accounting Equation
28
Discuss the 5 Major Accounts
35
Prepare A Chart of Account
42
Illustrate the Format of a General and Special Journals
51
Illustrate the Format of a General and Subsidiary Ledger
59
Analyze Common Business Transactions Using the Rules of Debit And Credit
66
Solve Simple Problems and Exercises in the Analysis of Business Transactions
74
Describes the Nature of Transactions in A Service Business
86
Record Transactions of Service Business in the General Journal
92
Posts Transactions in the Ledger
118
Prepares a Trial Balance
146
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FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1 Name of Learner:
Grade Level:
Section:
Date:
LEARNING ACTIVITY SHEET Definition of Accounting Background Information for Learners: Accounting is the process of IDENTIFYING, RECORDING AND COMMUNICATING economic events of an organization to interested users. This involves selecting economic events that are relevant to a particular business transaction. The economic events of an organization are referred to transactions. Learning Competency with code: Define accounting. (ABM_FABM11-IIIa-1)
Activity I Directions: Explain the three process of accounting using the three highlighted words in the graphic:
IDENTIFICATION
4
RECORDING
COMMUNICATING References 1. Fundamentals of Accountancy, Business, and Management by: Joselito Florendo 2. https://drive.google.com/file/d/0B869YF0KEHr7dW04Xzd3UWRNZW8/view
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FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1 Name of Learner:
Grade Level:
Section:
Date:
LEARNING ACTIVITY SHEET Nature of Accounting Background Information for Learners: The five basic features of accounting are: 1. Accounting is a process. 2. Accounting is an art. 3. Accounting is an information system. 4. Accounting is a service activity. 5. Accounting is a means not an end. Learning Competency with code: The learner describes the nature of accounting. (ABM_FABM11-IIIa-2)
Activity I Direction: Describe the images in relation to nature of accounting. Write your brief description in the box provided
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Reference for learners: Fundamentals of Accountancy, Business & Management by Joselito G. Florendo, https://drive.google.com/file/d/0B869YF0KEHr7dW04Xzd3UWRNZW8/view
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FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1 Name of Learner:
Grade Level:
Section:
Date:
LEARNING ACTIVITY SHEET History of Accounting Background Information for Learners: Accounting is as old as the civilization itself. It has evolved in response to various social and economic needs of men. Accounting started as a simple recording of repetitive exchanges. The history of accounting is often seen as indistinguishable from the history of finance and business. Learning Competency with code: The learner narrates the history/origin of accounting (ABM_FABM11-IIIa-4) Activity I Direction: Answer what is being ask. Why do historians, consider the dissemination of the double-entry bookkeeping of Luca Pacioli in the fourteenth century the most important event in the accounting history?
Reference for learners: 1. Fundamentals of Accountancy, Business, and Management by: Joselito Florendo 2. https://drive.google.com/file/d/0B869YF0KEHr7dW04Xzd3UWRNZW8/view
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FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1 Name of Learner:
Grade Level:
Section:
Date:
LEARNING ACTIVITY SHEET External and Internal Users of Financial Information Background Information for Learners: Accounting is called the language of business communicates accounting information to help many types of users. The user’s need for financial information depend upon the type of decisions to be made. Financial reports supply the information to the internal and external users in order for them to make decisions connected to the business.
Learning Competency with code: At the end of the activity the students should be able to: 1. Define external users and gives examples (ABM_FABM11-IIIa-7) 2. Define internal users and give examples (ABM_FABM11-IIIa-8) Procedure: Activity I Directions: Classify each of the following as either external user (E), or internal user (I). 1. Creditor 2.Employees 3. Academe 4.Government 5.Stockholder 6.Customer/Client 7.Potential Investor 8. Management 9.General Public 10.Owners Reference for learners: 1. Fundamentals of Accountancy, Business, and Management by: Joselito Florendo 2. https://drive.google.com/file/d/0B869YF0KEHr7dW04Xzd3UWRNZW8/view 9
FUNDAMENTALS OF ACCOUNTANCY, BUSINESS, AND MANAGEMENT 1 Name of Learner:
Grade Level:
Section:
Date:
LEARNING ACTIVITY SHEET The Accounting Concepts and Principles
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Background Information or Learners It seems that you already understood our previous topic. I am glad that you were able to accomplish all the activities in the previous lesson. Can you still differentiate the internal and external users of accounting? I’m sure you can. And I think we are now ready to proceed to the next topic. In this topic, please be reminded of the principles of accounting as written below before you answer the following activities. • • • • • • •
• • • •
Business Entity Principle- a business enterprise is separate and distinct from its owner or investor. Going Concern Principle- business is expected to continue indefinitely. Time Period Principle- financial statements are to be divided into specific time intervals. Monetary Unit Principle- amounts are stated into a single monetary unit. Objectivity Principle- financial statements must be presented with supporting evidence. Cost Principle- accounts should be recorded initially at cost. Accrual Accounting Principle- revenue should be recognized when earned regardless of collection and expenses should be recognized when incurred regardless of payment. On the other hand, the cash basis principle in which revenue is recorded when collected and expenses should be recorded when paid. Cash basis is not the generally accepted principle today. Matching Principle- cost should be matched with the revenue generated. Disclosure Principle- all relevant and material information should be reported. Conservatism Principle- also known as prudence. In case of doubt, assets and income should not be overstated while liabilities and expenses should not be understated. Materiality Principle- in case of assets that are immaterial to make a difference in the financial statements, the company should instead record it as an expense.
So, good luck and enjoy answering the activities!
LEARNING COMPETENCY Explain the varied accounting concepts and principles (ABM_FABM11-IIIb-c-15), solve exercises on accounting principles as applied in various cases (ABM_FABM11-IIIb-c-16)
Activity 1: Spot the Difference The New Munoz Bakeshop Jeniffer Garcia opened her new bakeshop named The New Munoz Bakeshop. She opened a bank account for her business amounting to P600,000. Her business earned P50,000 but she had doubts with the recorded expense of P60,000. The list of expenses is as follows: 11
Rent Expense 10,000 Salary Expense Utilities Expense (at Home) 15,000 Utilities Expense (at the Store) Insurance Expense Withdrawals TOTAL
20,000 10,000 5,000 10,000 60,000
Guide Question: In the situation stated above, what do you think should NOT be included as EXPENSES? Write INCLUDED or NOT INCLUDED on the space provided then explain your answers. 1. 2. 3. 4. 5. 6.
Rent Expense: Salary Expense: Utilities Expense (at Home): Utilities Expense (at the Store): Insurance Expense: Withdrawals: Closure
In case where application of one accounting concept or principle leads to a conflict with another accounting concept or principle, accountants must consider what is best for the users of the financial information. An example of such a case would be the trade off between relevance and reliability. Information is more relevant if it is disclosed timely. However, it may take more time to gather reliable information. Whether reliability of information may be compromised to ensure relevance of information is a matter of judgment that ought to be considered in the interest of the users of the financial information.
References for Learners Fundamentals of Accountancy, Business and Management 1, P.B. Liquanan, E. B. Ogena, M.A.C. Montealegre, R.V. Diaz, M.C.R.B. Bautista, B.F. Nebres, C.C. Oracion, G. Price, S. Bevins https://www.accountingcoach.com/accounting-principles/explanation https://accounting-simplified.com/financial-accounting/accounting-concepts-andprinciples/
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FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1 Name of Learner:
Grade Level:
Section:
Date:
LEARNING ACTIVITY SHEET The Accounting Equation
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Background Information for
Learners
I am glad that you were able to accomplish all the activities in the previous lesson. Can you still identify the principles of accounting? I’m sure you can. And I think we are now ready to proceed to the next topic. In this lesson, let us consider the accounting equation which is written as: ASSETS = LIABILITIES + EQUITY TAKE NOTE: • That for every transaction, the accounting equation should always be balanced. • That Assets are resources owned by the business. Example: Cash • That Liabilities are obligations by the business. Example: Loans • That Equity is the residual interest of the owner of the business. Meaning, any assets left after paying liabilities is the right of the owner of the business. Example: Capital 4 Elements That Affect Equity 1. Investment 2. Withdrawals 3. Revenue 4. Expenses For further explanation of this topic, let us consider the following example. DATE JULY 1
TRANSACTION Paolo Reyes started a delivery service on July 1, 2019. The following transactions occurred during the month of July. He invested PHP800,000 cash and Cars amounting to PHP200,000 Reyes borrowed PHP100,000 cash from PNB for use in his business.
2 Bought tables and chairs from Orocan and paid PHP45,000 cash 7
Various equipment were purchased on account from Fortune for PHP55,000
15 Reyes made a cash withdrawal of PHP5,000 for personal use 18
The account due to Fortune was paid in cash
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DATE
ASSETS Furniture
LIABILITIES
July
Cash
Cars
Equipment
1 2 Balances 7 Balances 15 Balances 18 Balances 20 Balances
800,000 100,000 900,000 (45,000) 855,000
200,000
200,000
45,000 45,000
855,000 (5,000) 850,000 (55,000) 795,000
200,000
45,000
55,000 55,000
200,000
45,000
55,000
200,000
45,000
55,000 1,095,000
200,000
Loans Payable
Accounts Payable
OWNER’S EQUITY Reyes, Withdrawals
Reyes, Capital
100,000
1,000,000
100,000
1,000,000
100,000 100,000 100,000 100,000 1,095,000
1,000,000 55,000 55,000 (55,000) 0
(5,000)
1,000,000
(5,000)
1,000,000
(5,000)
1,000,000
From the table above, we can notice that the amount of Assets is equal to the sum of Liabilities and Owner’s Equity. It means that the equation is balanced. The table is used to classify the status of the transactions. As you can see, it is organized according to the order of dates. Cash, cars, furniture, and equipment are the identified elements under Assets. Loans payable and accounts payable are obviously under Liabilities, while Reyes, withdrawals and Reyes, capital are under Owner’s Equity. TAKE NOTE: If the transaction pertains to CASH-OUT, it is written with open and close parenthesis. Example: (45,000)
Learning Competency The learners shall be able to illustrate the accounting equation (ABM_FABM11-IIIb-c8); perform operations involving simple cases with the use of the accounting equation (ABM_FABM11-IIIb-c-9) Activity 1: Increase/ Decrease For each transaction, tell whether the Assets (A), Liabilities (L) and Equity (E) will increase (I), decrease (D) or is not affected (NE). A L E 1. The owner invests personal cash in the business. 2. The owner withdraws business assets for personal use. 3. The company receives cash from a bank loan. 4. The company repays the bank that had lent money. 5. The company purchases equipment with its cash.
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6. The owner contributes her personal truck to the business. 7. The company purchases supply on credit. 8. The company purchases land by paying half in cash and signing a note. 9. The owner withdraws cash for personal use. 10. The company repays the suppliers. Activity 2: Describe the Table In this activity, instead of giving the transaction, the activity below is in reverse. You are going to describe the given transaction. The table is given, study the elements and write down thetransaction of the given table. DATE April Balance 1 2 3 4 5 6 7
ASSETS Cash 60,000 150,000 (20,000) (112,500)
Supplies 7,500
LIABILITIES Equipment 300,000
75,000
OWNER’S EQUITY 292,500 150,000
20,000 (112,500) 5,000
(15,000) (53,000)
5,000 (15,000) (53,000)
(8,000)
(8,000)
Are you ready to write down the transactions? I will do the first and last statement for your basis. 1. The owner invested cash of PHP150,000 or the business earned PHP150,000 cash from providing services. 2. 3. 4. 5. 6. 7. The owner withdrew supplies worth P8,000 or the business used supplies worth P8,000. References For Learners Fundamentals of Accountancy, Business and Management 1, P.B. Liquanan, E. B. Ogena, M.A.C. Montealegre, R.V. Diaz, M.C.R.B. Bautista, B.F. Nebres, C.C. Oracion, G. Price, S. Bevins https://www.investopedia.com/terms/a/accounting-equation.asp#:~:text=The%20 accounting%20equation%20whereby%20assets,total%20assets%20for%20the %20period) 16
FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND MANAGEMENT 1 Name of Learner:
Grade Level:
Section:
Date:
LEARNING ACTIVITY SHEET Five Major Accounts
Background Information for Learners The expanded accounting equation is composed of five elements. Every time a transaction occurs, we analyze the transaction whether it has a financial effect in the elements of the accounting equation. These elements that we are referring to under the expanded accounting equation are the five major classification of accounts – assets, liabilities, owner’s equity, revenuesand expenses. Learning Competency with Code: Discuss the 5 major accounts. (ABM_FABM11-III-d-e-19) ACTIVITY 1 Indicate the classification of the accounts listed below as an ASSET, LIABILITY, EQUITY, INCOME, or EXPENSE account under Column A and as either a Statement of Financial Position account or an Income Statement account under Column B. Accounts Titles
Column A
Column B
1. Accounts Receivable 2. Building 3. Notes Payable 4. Rent Expense 5. Owner’s Equity 6. Prepaid Expense 7. Inventories
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8. Interest Income 9. Cash 10. Computer Equipment 11. Utilities Payable 12. Rent Income 13. Unearned Income 14. Land 15. Sales
Activity 2 Given the following transactions of GD Law Services, determine what accounting element is affected. Write your answer in a sheet of paper. 1. Gina Dy put up her law and notarial office. She invested P200,000.00 as initial investment. 2. She paid P12,000 for stall rent applicable for one year. 3. She purchased a computer equipment worth P30,000. 4. She purchased a laptop and a printer worth P40,000 and P10,000, respectively. She paid P30,000, the balance to be paid after 60 days. 5. She purchased office supplies amounting to P3,000. 6. She received consultancy fee from various clients, P15,000. 7. She received professional fee amounting to P30,000. 8. She paid business taxes amounting to P4,650 during the month. 9. She paid P2,000 electricity expense during the month. 10. She paid P12,000 for the salary of her assistant. Procedures:
1. Read each transaction carefully. 2. Analyze the transaction. 3. Determine what specific element of the expanded accounting equation is affected in each transaction. References: Financial Accounting and Reporting 2nd ed., 2019, Millan, Z., pp. 104-125 18
Basic Accounting 4th edition, E. Valencia & G. Roxas., 2014, pp.89-120 Financial Accounting a...