A DEMONSTRATION LESSON PLAN IN ACCOUNTING FOR NONACCOUNTANTS
I.
II.
III.
Objectives
At the end of the 60-minute period, 85% of the students should be able to:
a. To identify the overall objective of accounting
b. To know the meaning of generally accepted accounting principles
c. To know the meaning of IFRS
Subject- Matter
Topic: The Purpose of Accounting
References: Valix |Peralta |Valix, Conceptual Framework and Accounting Standards,
1st ed.,
pp. 6-17
Materials: TV Monitor, Laptop, Powerpoint Presentations and Excel
Procedure (Lecture-Cum Demonstration Method)
A. Planning and Preparation
1. Apperception
Ask the students to discuss what they have learned from the previous lesson
Give some exercise items as part of board work in order to gauge retention
2. Unlocking of Difficulties
The teacher ask the students if they have knowledge on the following terms and
defines these words as used in Accounting.
o Accounting
o Accounting Standards
o GAAP
o Financial Accounting
o Managerial Accounting
3. Motivation
Ask the students if they have an idea of what is the purpose of accounting.
How does accounting affects one business?
Why do business establishment, big or small need accounting?
B. Introduction of the Lesson
This unit starts by discussing the definition of accounting. In this lesson, it is needed
to for you students to know why accountancy is considered an art of recording,
classifying and summarizing a significant manner. I’ll be teaching you today on
what’s, how’s and why’s of accounting. For us to understand the essence, purpose
and importance of accounting, we need to analyze and understand the true use of
this art.
But for today, we will study first what underlies the meaning of Accounting.
C. Presentation
Let us look at the theories behind the accounting profession and its importance.
D. Performance Procedure or Problem Presentations
1. Identifying events if it is accountable
This accounting process is the recognition or non-recognition of business activities
as “accountable events” events. Not all events are accountable or journalized.
EXTERNAL AND INTERNAL TRANSACTIONS
A. External transactions or exchange transactions are those economic events
involving one entity and another entity.
B. Internal transactions are economic events involving the entity only.
 Identify if the events are external or internal transactions
Transactions
Possible answer
Purchase of goods from supplier
External Transaction
Borrowing money from bank
External Transaction
Production of goods
Internal Transaction
Sale of goods to customer
External Transaction
Payment of salaries to employees
External Transaction
Casualty loss
Internal Transaction
Payment of tax to the government
External Transaction
2. Measuring
If accounting information is useful, it must be expressed in terms of common
financial denominator.
 Historical Cost- original acquisition cost and the most common measurement
of financial transactions.
 Current Value- includes fair value, value in use, fulfillment value and current
cost.
3. Communicating
The process of preparing and distributing accounting reports to potential users of
accounting information.

Recording transactions
Eliza Diaz established her wedding consultancy with initial investment of
P250,000 on May 1.
JOURNAL ENTRY
DATE
ACCOUNT TITLE
MAY 1 Cash
Diaz, Capital


DEBIT
CREDIT
250,000
250,000
Classifying
Sorting or grouping if similar and interrelated economic transactions after
they have identified and measured.
Summarizing
Preparation of the following:
- Statement of financial position
- Statement of financial performance
- Statement in changes in equity
- Statement of cash flows
- Other comprehensive income
- Notes to financial statement
E. Blackboard Summary (Exercises)
Ask the student to summarize what they learned.
Give the students more exercises in the form of board work.
IV.
V.
F. Supervision (Self-Activity)
Give more activities as part of making the concept retained among students.
Evaluation
Students will be given a short quiz.
Assignment
Make an advanced reading of the Qualitative Characteristics of Useful Financial
Information and answer the following events if accountable or not accountable.
Jackielyn Magpantay organized Eternal Images, a photography and portrait studio, on July
1, 2021. The studio completed the following transactions during the month:
July 1
3
5
7
8
10
Deposited P350,000 in a back account in the name of the business.
Paid two month’s rent deposit and one month-advance, P40,500.
Transfer to the business personal photography equipment valued P129,000.
Ordered additional photography equipment, P75,000.
Purchased office equipment for cash, P54,000.
Received and paid for the photography equipment on July 7, P75,000.
12
13
17
19
25
26
28
29
30
31
Purchased photography supplies on credit, P21,000.
Received cash for the previously unbilled portraits, P11,400.
Billed customers for portraits , P22,500.
Paid 50% of the supplies purchased on July 12, P10,500.
Paid electricity bill for July, P3,600.
Paid telephone bill for July, P2,100.
Received payments from the customers billed on July 17, P7,500.
Paid salaries to personnel, P12,000.
Received in advance payment from customer, P1,500.
Withdrew P16,000 from the business for personal emergency.
Prepared by:
CHRISVIE MARIE FELIPE
Instructor