i
FUNDAMENTALS OF
ACCOUNTANCY,
BUSINESS,
AND
MANAGEMENT 1
Activity Sheets
ii
iii
Table of Contents
A. Cover Page
i
B. Title Page
ii
C. Copyright Page
iii
D. Table of Contents
iv-vi
E. Background Information
vii
F. Components of the Activity Sheets
Activity Sheets for Quarter 3, Week 1
Simple Activities
1-3
Moderate Activities
4-7
Challenging Activities
8
Enrichment Activities
9-12
Answer Key
13-16
Rubrics
17
Activity Sheets for Quarter 3, Week 2 & 3
Simple Activities
18-19
Moderate Activities
20-21
Challenging Activities
22-24
Enrichment Activities
25-26
Answer Key
27-30
Rubrics
31
Activity Sheets for Quarter 3, Week 4
Simple Activities
32-34
Moderate Activities
35-37
iv
Challenging Activities
38-40
Enrichment Activities
41-43
Answer Key
44-47
Activity Sheets for Quarter 3, Week 5
Simple Activities
48-50
Moderate Activities
51-52
Challenging Activities
53-55
Enrichment Activities
56-58
Answer Key
59-64
Rubrics
65
Activity Sheets for Quarter 3, Week 6
Simple Activities
66-67
Moderate Activities
68-70
Challenging Activities
71-73
Enrichment Activities
74-76
Answer Key
77-80
Activity Sheets for Quarter 3, Week 7-9
Simple Activities
81-82
Moderate Activities
83-84
Challenging Activities
85-87
Enrichment Activities
88-90
Answer Key
91-96
Activity Sheets for Quarter 4, Week 1-2
Simple Activities
97-98
v
Moderate Activities
99-100
Challenging Activities
101-105
Enrichment Activities
106-110
Answer Key
111-115
Activity Sheets for Quarter 4, Week 3-9
Simple Activities
116-119
Moderate Activities
120-122
Challenging Activities
123-125
Enrichment Activities
126-129
Answer Key
130-148
G. References
149
H. Back Cover
viii
vi
BACKGROUND INFORMATION
This Activity Sheets in Fundamentals of Accountancy, Business, and Management 1 is
designed as an Alternative Instructional Resources for learners in the Senior High School. It is
a supplementary learning tool provided for home–school activities. It covers different forms of
tests on fundamental theories for concepts and principles in Basic Accounting. It also includes
application of such accounting conceptual frameworks and standards through series of learning
activities in order to meet the learning competencies.
The objectives of this Activity Sheets are as follows: 1.) to appreciate the evolution of
Accounting, 2.) to enhance the learner’s ability in understanding fundamental accounting
concepts, 3.) learn on how to solve exercises on accounting principles as applied in various
cases, 4.) to illustrate the accounting equation, and perform operations involving simple cases
with the use of accounting equation, 5.) to classify the five major accounts and prepare chart of
accounts, 6.) to prepare journals and ledgers, 7.) to analyze common business transactions
using rules of debit and credit and solve simple problems and exercises in the analyses of
business transactions, 8.) to describe the nature of transactions in a service business, record
transactions of a service business in the general journal, post transactions in the ledger and
prepare the trial balance, 9.) to prepare adjusting entries and complete the accounting cycle,
and 10.) to describe the nature of transactions in a merchandising business; record transactions
of a merchandising business in the general and special journals; post transactions in the general
ledger and subsidiary ledgers; prepare trial balance; prepare adjusting entries; and complete the
accounting cycle of a merchandising business.
The authors hope that users of this Activity Sheets will be able to build good foundation on the
Basic Accounting which is very important specifically in the preparation of financial
statements. Wherein from this reports, users can decide well on how to allocate and use their
limited resources efficiently and effectively
vii
Republic of the Philippines
DEPARTMENT OF EDUCATION
Region I
San Fernando City
La Union
ACTIVITY SHEETS IN FUNDAMENTALS OF
ACCOUNTANCY, BUSINESS AND MANAGEMENT 1
(FABM 1), GRADE 11, 3rd QUARTER, WEEK 1
MELC: The learners define accounting; describe the nature of
accounting; narrate the history/origin of accounting; define external
users and give examples; and define internal users and give examples.
• K to 12 BEC CG: ABM_FABM11-IIIa-1, 2, 4, 7, 8
Objectives:
The learner shall be able to:
1.
2.
3.
Define accounting, describe the nature of accounting, explain the functions of
accounting in business, and narrate the history/origin of accounting.
Define external users and give examples and define internal users and give examples.
Identify the type of decisions made by each group of users and describe the type of
information needed by each group of users.
Prepared by:
MAUREEN P. ABULENCIA
MA. RITA D. GARCIA
Teacher III
Master Teacher I
LEONIDES L. GAVINA
Master Teacher 1
Name: _____________________________________________________ Date: __________
Grade/Section: _______________________________________________Score:__________
Title of the Activity: Getting to Know You
Most Essential Learning Competency: The learner defines accounting; describes the
nature of accounting; narrates the history/origin of accounting; defines external users
and gives examples; and defines internal users and give examples.
K to 12 BEC CG: ABM_FABM11-III-a-1, 2, 4, 7, 8
I. Finder’s Keepers: The following are jumbled letters, arrange them to form a word.
1. GNTIACNCOU
6. SACIOTNTRAN
2. GINYIFNTIED
7. FROAMNIOTIN
3. GINDORCER
8. SNOISICED
4. MANEAGENTM
9. KOOBINGPEEK
5. NOMUNCOMICITA
10. ECRIDSROT
II. True/False: Write the word True if the statement is correct otherwise write the word
False. Write your answer in the space provided.
_____1. Accounting is the process of identifying, measuring and communicating
economic decisions.
_____2. The accounting process are in the following order: recording,
identification and communicating.
_____3. Internal users are users within the business.
_____4. Accounting is an art, a service activity and also a process.
_____5. Example of an internal user of a Fast-food chain is manager of bank.
_____6. Luca Pacioli is the Father of Accountancy
1
_____7. The AICPA mentioned four phases of accounting in its definition
namely: recording, classifying, summarizing and communicating.
_____8. Accounting deals with financial statements and transactions.
_____9. Double -entry bookkeeping was introduced in the 19th Century.
_____10. Example of internal user of a Bookkeeping Company is the owner.
III. Ako na lang, Ako na lang uli: Choose the letter that best correspond to your answer
on the given statements. Write your answer in the space provided.
___1. It is an information system.
A. Accounting
B. Marketing
C. Finance
D. Economics
C. Management
D. Owners
___2. An example of an external user is:
A. Employees
B. Customers
___3. Accounting deals with transactions and what kind of information?
A. Entrepreneurial
B. Economical
C. Financial
D. Ethical
___4. This type of users makes use of general purpose financial statement.
A. Internal users
C. Outside users
B. External users
D. All of the above
___5. The nature of accounting follows, except
A. Accounting is a service activity.
C. Accounting is an art.
B. Accounting is a means and not an end. D. Accounting is a process.
___6. The definition of accounting by American Accounting Association
includes the following phases, EXCEPT
A. Identifying
B. Measuring
C. Summarizing
___7. Accounting is a/an
A. Legislative system
C. Business system
2
D. Communicating
B. Economic system
D. Information system
___8. Accounting is a service activity. Its function is to provide quantitative
information, primarily financial in nature, about economic entities, that is
intended to be useful in making __________ decisions.
A. Qualitative
B. Economic
C. Informative
D. Legislative
___9. Creditors, government, potential investors and _________ are examples of
external users
A. Managers
B. Stockholders
C. Customers
D. Employees
___10. They are individuals/organizations who/which does not manage or work
for a company but uses its financial information.
A. Internal users
B. External users
3
C. Local users
D. Foreign users
Name: _____________________________________________________ Date: __________
Grade/Section:_______________________________________________ Score:__________
Title of the Activity: Understanding Accounting
Most Essential Learning Competency: The learner defines accounting; describes the
nature of accounting; narrate the history/origin of accounting; defines external users
and gives examples; and defines internal users and gives examples.
K to 12 BEC CG: ABM_FABM11-III-a-1 , 2 , 4, 7, 8
I.
Identification: Identify what is referred to in each statement. Choose your answer
from the list given. Write your answer in the space provided.
Recording
Luca Pacioli
Financial
Means
Accounting
Identifying
Double-Entry Bookkeeping
Internal Users
Classifying
19th Century
Interpreting
External Users
Summarizing
__________1. It is the process of identifying, recording and communicating
economic events of an organization to interested users.
__________2. It is the process of accounting that involves the determination of
what economic transactions transpired.
__________3. He is the father of Accounting.
__________4. It is the language of business.
5. The__________ is the third phase in the Definition of Accounting by AICPA.
6. __________ are people within a business organization who use financial
information.
7. __________ is an information system.
8. Employees is one example of __________ users.
4
9. In the 14th century Luca Pacioli described the system __________ used by
Venetian merchants in his Summa de Arithmetica, Geometria, Proportioni et
Proportionalita.
10. Accounting is a ___________ and not an end.
11. Potential investors is one example of __________.
12. Accounting deals with _________ information and transactions.
13. ___________ the beginning of Modern Accounting in Europe and America
14. ___________ are those entities interested in the financial results of a
business, but who take no part in operating the entity.
15. __________ is a service activity.
16. Accounting is the art of ___________, (17)__________, (18)___________
in a significant manner and in terms of money, transactions and events which
are in part at least of a financial character and (19)___________ the results
thereof.
20. __________ user include owners/stockholders.
5
II. Matching Type: Match descriptions in Column B with appropriate terms in Column A.
Write your answer in the space provided.
Column A
Column B
_____1. Communication
A. Journals and ledgers are used in this process as well as
_____2. Identification
_____3. Recording
classifying and summarizing
B. Financial Statements are analyze and interpreted by users
to make economic decisions
_____4. Luca Pacioli
C. By looking or referring into the Business Documents, one
_____5. Accounting
know what transactions transpired
_____6. Accounting
D. It is referred to as a service activity
_____7. Accounting
E. Known as the Father of Accounting
Standards
Council (ASC)
_____8. Summarizing
F. Sees accounting as a service activity
G. Reports prepared as a bases for making economic
decisions
_____9. External users
H. Recording, Classifying, Summarizing and Interpreting
_____10. Phases of
Accounting
I. Suppliers, Creditors, Prospective investors
J. Involves preparation of financial reports
6
III. Fill in the Blanks: Fill in the missing words in the blank provided.
A) Accounting as defined by AICPA is the art of (1)________,(2) ______,(3) _____, in a
significant manner and in terms of (4) ________, (5)________ and (6)_______ which are
in part at least of a (7)________ character and (8)_________ the results thereof.
B) Accounting as defined by American Accounting Association is the process of
(9)__________,(10)_________ and(11)_________economic information to permit
informed judgement and decision by (12)_________ of the information.
C) The nature of accounting follows: it is a (13) ___________ activity. It is a (14)
_________. It is an (15)________. It deals with (16)__________information and
transactions. It is a (17)_________ not an end. It is an (18)__________ system.
D) External users include: (19) __________, (20)___________, (21)___________, and
(22)__________.
E) Internal Users include: (23)__________, (24)___________ and (25)__________.
7
Name: ___________________________________________________ Date: _____________
Grade/Section:____________________________________________ Score:_____________
Title of the Activity: Essay
Most Essential Learning Competency: The learners define accounting; describe the
nature of accounting; narrate the history/origin of accounting; define external users and
give examples; and define internal users and give examples.
K to 12BEC CG:ABM_FABM11-III-a-1,2,4,7,8
I.
Direction: Illustrate the connectivity of the four (4) phases of Accounting and state
a concise explanation for each phase.
II.
Direction: Differentiate internal users from external users and cite examples under
each type.
III.
Direction: Discuss briefly the history/origin of Accounting.
8
Name: ___________________________________________________ Date: _____________
Grade/Section:_____________________________________________ Score:____________
Title of the Activity: Let us Review
Most Essential Learning Competency: The learner define accounting; describe the
nature of accounting; narrate the history/origin of accounting; define external users and
give examples; and define internal users and give examples.
K to 12BEC CG: ABM_FABM11-III-a-1, 2, 4, 7, 8
I. True/False: Write the word True if the statement is correct otherwise write the word
False in the space provided and underline the word/s that make the statement incorrect.
_____1. There are four (4) phases of accounting which are found in the definition
given by the AICPA namely: recording, classifying, summarizing, and
interpreting.
_____2. 14th Century was the beginning of Modern Accounting in Europe and
America.
_____3. Accounting deals with Economic information and transactions.
_____4. Summarizing phase of accounting usually involve the preparation of
financial reports.
_____5. Interpreting is the phase of accounting wherein only the owner use
financial statements to make an economic decision.
_____6. One function of accounting is to support the monthly operations of the
business.
_____7. Accounting is an end and not the means.
_____8. External users are stakeholders like owners/stockholders.
_____9. Double-entry bookkeeping was made known in the Modern times.
9
_____10. Accounting is a service activity wherein its function is to provide
qualitative information.
_____11. Accounting is an information dissemination.
_____12. Internal users include: management, employees, and creditors.
_____13. The Father of Accountants is Luca Pacioli.
_____14. Prospective investors are considered internal users.
_____15. Bookkeeping is an information system.
II. Multiple Choice: Choose and write the letter that best correspond to your answer on
the statements given in the space provided.
___1. It is an information system.
A. Accounting
B. Recording
C. Communicating
D. Identifying
___2. The following are examples of internal users EXCEPT:
A. Employees
B. Customers
C. Management
D. Owners
___3. Accounting deals with transactions and what kind of information?
A. Managerial
B. Governmental
C. Financial
D. Individual
___4. This type of users makes use of special purpose financial statement.
A. Internal users B. External users
C. Outside users
D. All of the above
___5. The nature of accounting follows, EXCEPT
A. Accounting is a service activity.
C. Accounting is an art.
B. Accounting is a means and not an end.
D. Accounting is a process.
___6. The definition of accounting by AICPA includes the following phases,
EXCEPT
A. Recording
B. Classifying
10
C. Summarizing
D. Informing
___7. Accounting is a/an
A. Recording system
C. Classifying system
B. Summarizing system
D. Information system
___8. Accounting is a service activity. Its function is to provide ________
information, primarily financial in nature, about economic entities, useful
in making economic decisions.
A. Qualitative
B. Quantitative
C. Informative
D. Legislative
___9. Creditors, government, and potential investors are examples of
A. Internal users
B. External users
C. Local users
D. Foreign users
___10. They are person within business firm who use financial information.
A. Internal users
B. External users
C. Local users
D. Foreign users
III. Identification: Identify what is being asked for. Write your answer in the space
provided.
_______1. It deals with financial information and transactions.
_______2. This includes recording, classifying, summarizing and interpreting.
_______3. It has been perceived as the language of business.
_______4. The accounting process wherein financial statements are analyzed
and interpreted by users to make economic decisions.
_______5. These users include: suppliers, lenders, prospective investors and
customers.
_______6. It is a service activity, a process and also an art.
_______7. Accounting process whereby looking/referring into the business
documents one knows what transactions transpired.
_______8. These are reports prepared as bases for making economic decisions
11
_______9. Accounting process which involve keeping systematic record of
business transactions.
_______10. He is considered the Father of Accounting/Accountancy.
12
Answer Key:
Simple Activities
Test I.
1. ACCOUNTING
6. TRANSACTION
2. IDENTIFYING
7. INFORMATION
3. RECORDING
8. DECISIONS
4. MANAGEMENT
9. BOOKKEEPING
5. COMMUNICATION
10. CREDITORS
Test II.
1. TRUE
6. TRUE
2. FALSE
7. FALSE
3. TRUE
8. FALSE
4. TRUE
9. FALSE
5. FALSE
10. TRUE
Test III.
1.
A
6. D
2.
B
7. B
3.
C
8. B
4.
B
9. C
5.
B
10.B
Moderate Activities
Test I.
1. Accounting
11. External users
2. Identifying
12. Financial
3. Luca Pacioli
13. 19th century
4. Accounting
14. External users
5. Summarizing
15. Accounting
13
6. Internal users
16. Recording
7. Double-entry bookkeeping
17. Classifying
8. Internal users
18. Summarizing
9. Double-entry bookkeeping
19. Interpreting
10. Means
20. Internal Users
Test II.
1. B
6. F
2. C
7.G
3. A
8. J
4. E
9. I
5. D
10. H
Test III.
1. Recording
15. Art
2. Classifying
16. Financial
3. Summarizing
17. Means
4. Money
18. Information
5. Transactions
19. Customers
6. Events
20. Creditors
7. Financial
21. Prospective investors
8. Interpreting
22. Suppliers
9. Identifying
23. Management
10. Recording
24. Owners/Stockholders
11. Communicating
25. Employees
12. Users
and other answers for 21 – 23
13. Service
Creditors
14. Process
Government agencies
15. Art
Customers
14
Challenging Activities
Test I.
Recording
Classifying
Summarizing
Interpreting
Test II.
External users are those individuals or organization who do not manage or work for
a company but uses its financial statements. Example - owners/stockholders, managers,
employees, while Internal users are people within a business organization who use
financial information. Example - creditors, suppliers, government agencies like BIR,
customers.
Test III.
History/origin
Enrichment Activities
Test I.
1. True
2. False
14th
3. False
economics
4. True
5. False
only
6. False
monthly
7. False
end/means
8. False
external
9. False
modern time
10. False
qualitative
11. False
dissemination
12. False
creditors
13. False
accountants
14. False
external
15. False
bookkeeping
15
Test II.
1. A
6. D
2. B
7. D
3. C
8. B
4. A
9. B
5. B
10.A
Test III.
1. Accounting
6. Accounting
2. Phases of Accounting
7. Identifying
3. Accounting
8. Financial statement
4. Communicating
9. Recording
5. External
10. Luca Pacioli
16
Rubrics
Challenging Activities
Test I-III.
Descriptors
Criteria
5
3
Content
Answer given is based on an Answer is unrealistic, lacking
actual or real-world situation that relevant context and cannot be
can be linked to the topic.
linked to the topic.
Grammar
The answer contains only 1 or 2 The answer contains many spelling
spelling errors. The answer errors. The answer contains many
contains only 1 or 2 grammatical grammatical errors.
errors.
17
Republic of the Philippines
DEPARTMENT OF EDUCATION
Region I
San Fernando City
La Union
ACTIVITY SHEETS IN FUNDAMENTALS OF
ACCOUNTANCY, BUSINESS, AND MANAGEMENT 1
(FABM 1), GRADE 11, QUARTER 3, WEEK 2 & 3
MELC: The learners explain the varied accounting concepts and
principles, solve exercises on accounting principles as applied in
various cases, illustrate the accounting equation, and perform
operations involving simple cases with the use of accounting equation.
• K to 12 BEC CG: ABM_FABM11-IIIb-c-15 to
ABM_FABM11-IIIb-c-18
Objectives:
The learner shall be able to:
1. Define and understand the different accounting concepts and principles and
identify the accounting concepts and principles as applied in various cases /
real-life situations.
2. Illustrate the accounting equation.
3. Solve exercises with the use of the accounting equation and the expanded
accounting equation.
Prepared by:
MAUREEN P. ABULENCIA
Teacher III
MA. RITA D. GARCIA
Master Teacher I
LEONIDES L. GAVINA
Master Teacher
Name: _____________________________________________________ Date: ___________
Grade/Section: _______________________________________________ Score:__________
Title of the Activity: Identification and Classification
Most Essential Learning Competency: The learners explain the varied accounting
concepts and principles, solve exercises on accounting principles as applied in various
cases, illustrate the accounting equation, and perform operations involving simple cases
with the use of accounting equation.
K to 12 BEC CG: ABM_FABM11-IIIb-c-15 to ABM_FABM11-IIIb-c-18
Directions: Identify or classify the concept being referred to.
I.
Unscramble the letters to answer the questions.
1.
This principle expresses that a company may violate another accounting
principle if the amount in question is small enough that the decision of a user of
financial statement will not be affected. MTAIYALTREI
2.
It assumes that all of the business transactions are separate from the business
owner’s personal transactions. MECONCIO ETYNTI
3.
This principle requires business transactions to have some form of impartial
supporting evidence or documentation. BTICJVIYTEO
4.
In the absence of contrary information, a business entity is assumed to remain in
existence for an indeterminate period of time. NIGGO CRONCEN
5.
It requires that all business transactions and other events are recognized in the
accounting records when they occur, rather than when the cash or equivalent is
received or paid. CARLCUA
6.
The life of an economic entity can be divided into artificial time periods for the
purpose of providing periodic reports on the economic activities of the entity.
IMEPE-TODIR
7.
Economic activities of a Philippine entity are measured and reported in
Philippine peso. EMROTYAN INTU
8.
It leads accountants to anticipate or disclose losses, but it does not allow a
similar action for gains. VASCOSIERTN
18
9.
This principle states that amount shown in the financial statements should be at
its historical cost. COTS
10.
II.
Another word for conservatism. RUPEEDNC
Identify component of the accounting equation being described. Choose from the items
below.
A. Assets
C. Owner’s Equity
B. Liabilities
D. Revenue
E. Expenses
1.
It refers to the residual claims or net assets of the owners of an entity.
2.
These are the costs incurred by the business in generating revenues.
3.
These are the resources controlled by the business as a result of past transactions and
events and from which future economic benefits are expected to flow to the business.
4.
These are the earnings of a business from its main operations.
5.
It refers to the present obligations of an entity arising from past transactions or events,
the settlement of which is expected to result in an outflow from the business of
resources embodying economic benefits.
III.
Classify the words in the box as ASSETS, LIABILITIES, or OWNER’S EQUITY.
Accounts Payable
Unearned Revenue
Sales
ASSETS
Cash on Hand
Notes Payable
Capital
Utilities Expense
Land
Equipment
LIABILITIES
19
OWNER’S EQUITY
Name: _____________________________________________________ Date: ___________
Grade/Section: _______________________________________________Score: __________
Title of the Activity: From Concepts to Application
Most Essential Learning Competency: The learners explain the varied accounting
concepts and principles, solve exercises on accounting principles as applied in various
cases, illustrate the accounting equation, and perform operations involving simple cases
with the use of accounting equation.
K to 12 BEC CG: ABM_FABM11-IIIb-c-15 to ABM_FABM11-IIIb-c-18
Directions: Below are situational problems. Provide what is being asked for.
I.
Below are accounting assumptions, match each case or situation to the correct
accounting assumption.
Economic Entity
Monetary Unit
1.
Accrual Basis
Time Period
Going Concern
Company X gives salaries to its employees every Friday. If June 30 falls on
a Tuesday then Company X must recognize a liability to its employees of
two days salary.
2.
Corporation A issues financial statements to its stockholders every year so
that the stockholders will have an idea on how the company performed for a
particular year.
3.
Ben has a sari-sari store. One time, he was so busy that he forgot to cook
food for lunch so he got a can of sardines which he has to pay although he
owns the sari-sari store.
4.
Jollibee should report their financial statements in Philippine pesos though
they have a store in the United Sates.
20
II.
Below are accounting principles, match each case or situation to the correct
accounting principle.
Cost
Materiality
1.
Full Disclosure
Conservatism
Revenue Recognition
Matching
Objectivity
When a customer pays for the goods he/she bought from CSI, CSI must
have a copy of the receipt to represent as evidence for the goods it sold.
2.
When Harvent School buys a laptop for school use, it should be recorded at
the price it was bought.
3.
A school purchases a calculator with an estimated useful life of three years.
Since a calculator is immaterial relative to the schools assets, it should be
recorded as an expense.
4.
When a beautician at E-Mix Salon has already finished rebonding the hair of
a customer it should be recorded as revenue eventhough the customer has
not yet paid e-mix salon.
5.
Danny is car salesman in Toyota. He has sold a car to one of his customers.
The sale of the car and the commission that Danny will receive from Toyota
should be recorded at the same accounting period.
III.
Supply the missing amounts to satisfy the basic accounting equation.
Assets
Liabilities
Owner’s Equity
A
?
₱12,500
₱50,000
B
₱225,550
?
₱185,000
C
₱150,125
₱40,550
?
D
₱572,000
?
₱286,000
E
?
₱150,000
₱75,000
21
Name: ______________________________________________________Date: __________
Grade/Section: _______________________________________________ Score:__________
Title of the Activity: Real Life Situations
Most Essential Learning Competency: The learners explain the varied accounting
concepts and principles, solve exercises on accounting principles as applied in various
cases, illustrate the accounting equation, and perform operations involving simple cases
with the use of accounting equation.
K to 12 BEC CG: ABM_FABM11-IIIb-c-15 to ABM_FABM11-IIIb-c-18
Directions: Provide what is being asked for.
I.
Indicate which accounting concept or principle is violated for each situation.
A.
What accounting assumption is being violated?
1.
The owner of JB’s Bagoong bought a car for personal use. The invoice
was given to the accountant who recorded it as an asset of the business.
2.
Magic Club Incorporated bought 1,000 pieces of Pocky chocolate
coated biscuit sticks from Japan for 69,975 Japanese Yen. It was
reported at that amount in the statement of financial position while all
the other assets were reported in Philippine pesos.
3.
No financial statements were being prepared by La Union Bakery for
their business. They explained that they will prepare the financial
statements when they close the business, which they predicted to be
after 25 years.
B.
What accounting principle is being violated
1.
Kuripot Ak Construction Company purchased a hammer at a cost of
₱550. This was recorded as an asset. Depreciation expense to decrease
its value by ₱55 per year for 10 years.
2.
A gasoline boy from Shell Gasoline Station forgot to issue a receipt to a
tricycle driver after it has sold ₱200 worth of gasoline.
22
II.
III.
Give examples of how we can apply the following accounting assumptions or
principles.
1.
Objectivity Principle
2.
Economic Entity Assumption
3.
Cost Principle
4.
Matching Principle
5.
Monetary Unit Assumption
Record transactions using the table provided.
In June of 20XX, P Lakukaracha established a photocopying business. Transactions
completed during the month follow:
1.
Deposited ₱200,000 in a bank named Lakukaracha Photopying Center.
2.
Paid store rent for the month ₱10,000
3.
Bought photocopying supplies consisting of bond papers, staple wires,
staplers, and the like for cash, ₱25,000.
4.
Bought 2 photocopying equipment for ₱75,000 each on account from Office
Warehouse.
5.
Received cash for photopying services earned for ₱42,800.
6.
Paid ₱50,000 to Office Warehouse as partial payment to the photocopying
equipment.
7.
Received and paid the bill for water and electricity, ₱7,400.
8.
Paid monthly salary of employees ₱13,300.
23
Note: Check the equality of the accounting equation.
Assets
Cash
Supplies
Liabilities
Equipment
Accounts
Payable
24
Owner’s Equity
L, Capital
Revenue
Expenses
Name: ______________________________________________________Date: __________
Grade/Section: ________________________________________________Score: _________
Title of the Activity: Enrichment Activities
Most Essential Learning Competency: The learners explain the varied accounting
concepts and principles, solve exercises on accounting principles as applied in various
cases, illustrate the accounting equation, and perform operations involving simple cases
with the use of accounting equation.
K to 12 BEC CG: ABM_FABM11-IIIb-c-15 to ABM_FABM11-IIIb-c-1
Directions: If you were not able to get a passing score for the first activities,
answer the succeeding activities below.
I.
Write True if the statement is correct otherwise write False.
_____1. The concept of materiality may justify departure from other
generally accepted accounting principles in accounting for a
particular transaction.
_____2. Cost principle concept states that assets should be reported at their
acquisition cost even if they may have a substantially higher
current value.
_____3. Under the accrual method of accounting, collection of cash in 2020
in payment of services rendered in 2019 leads to recording of
revenue in 2020.
_____4. The time period assumption states that the life of an entity can be
divided into time periods for purposes of reporting its economic
activities.
_____5. The going concern assumption states that even if strong evidence
exists to the contrary, it is assume that the business entity will
continue operations into the indefinite future.
II.
Classify the following accounts as Assets, Liabilities, or Owner’s Equity
1.
Accounts Payable - _________________________
2.
Accounts Receivable - _______________________
3.
Building - ___________________________
25
III.
4.
Cash - __________________________
5.
Interest Expense - ____________________
6.
Office Supplies - ________________________
7.
Sales - ___________________________
8.
Service Revenue - ________________________
Record Transactions in the table provided below.
During the month of November, 20XX, Jack Water Refilling Station had the
following transactions:
1.
Jack invested ₱300,000 cash into the newly formed business.
2.
Paid rent amounting to ₱20,000.
3.
Bought water distilling equipment worth ₱150,000. Paid ₱25,000 cash and
the rest on account.
4.
Purchased ₱21,800 worth of supplies.
5.
Paid ₱3,000 for business permits and other fees.
6.
Received ₱45,000 for distilled water sold to clients.
7.
Paid ₱25,000 as partial payment for water distilling equipment.
8.
Paid salary of two helpers ₱12,000.
9.
Paid Utility bill for the month ₱5,500.
Assets
Cash
Supplies
Liabilities
Equipment
Accounts
Payable
26
Owner’s Equity
L, Capital
Revenue
Expenses
Answer Key:
Simple Activities
Test I.
1.
MATERIALITY
2.
ECONOMIC ENTITY
3.
OBJECTIVITY
4.
GOING CONCERN
5.
ACCRUAL
6.
TIME PERIOD
7.
MONETARY UNIT
8.
CONSERVATISM
9.
COST
10.
PRUDENCE
1.
C
2.
E
3.
A
4.
D
5.
B
Test II.
Test III.
Assets
Liabilities
Owner’s Equity
Cash on Hand
Accounts Payable
Sales
Land
Unearned Revenue
Capital
Equipment
Notes Payable
Utilities Expense
27
Moderate Activities
Test I.
1. Accrual Basis
2. Time Period
3. Economic Entity
4. Monetary Unit
Test II.
1.
Objectivity
2.
Cost
3.
Materiality
4.
Revenue Recognition
5.
Matching
Test III.
Assets
Liabilities
Owner’s Equity
A
₱62,500
₱12,500
₱50,000
B
₱225,550
₱40,550
₱185,000
C
₱150,125
₱40,550
₱109,575
D
₱572,000
₱286,000
₱286,000
E
₱225,000
₱150,000
₱75,000
Challenging Activities
Test I.
A. Accounting Assumption
1.
Economic Entity Assumption
2.
Monetary Unit Assumption
3.
Time-Period Assumption
B. Accounting Principle
28
4.
Materiality Principle
5.
Objectivity Principle
Test III.
Assets
Cash
Supplies
Owner’s Equity
Liabilities
Equipment
Accounts
Payable
₱200,000
L, Capital
Revenue
₱200,000
-₱10,000
-₱25,000
Expenses
-₱10,000
₱25,000
₱150,000
₱150,000
₱42,800
₱42,800
-₱50,000
-₱50,000
-₱7,400
-₱7,400
-₱13,300
-₱13,300
₱137,100
₱25,000
₱150,000
₱100,000
₱312,100
₱200,000
₱42,800
₱312,100
Enrichment Activities
Test I.
1.
True
2.
True
3.
False
4.
True
5.
False
1.
Liability
2.
Asset
3.
Asset
4.
Asset
Test II.
29
-₱30,700
5.
Owner’s Equity
6.
Asset
7.
Owner’s Equity
8.
Owner’s Equity
Test III.
Assets
Cash
Supplies
Owner’s Equity
Liabilities
Equipment
Accounts
Payable
₱300,000
L, Capital
Revenue
₱300,000
-₱20,000
-₱20,000
-₱25,000
-₱21,800
Expenses
₱150,000
₱125,000
₱21,800
-₱3,000
-₱3,000
₱45,000
₱45,000
-₱25,000
-₱25,000
-₱12,000
-₱12,000
-₱5,500
-₱5,500
₱232,700
₱21,800
₱150,000
₱100,000
₱404,500
₱300,000
₱45,000
₱404,500
30
-₱40,500
Rubrics
Challenging Activities
Test II.
Descriptors
Criteria
5
4
Realism
Example given is based on an
Example is unrealistic, lacking
actual or fictionalized real-world relevant context and cannot be
situation that can be linked to the linked to the topic.
topic.
Grammar
The example contains only 1 or 2 The example contains many spelling
spelling errors. The example
errors. The example contains many
contains only 1 or 2 grammatical grammatical errors.
errors.
31
Republic of the Philippines
DEPARTMENT OF EDUCATION
Region I
San Fernando City
La Union
ACTIVITY SHEETS IN FUNDAMENTALS OF
ACCOUNTANCY, BUSINESS, AND MANAGEMENT 1
(FABM 1), GRADE 11, QUARTER 3, WEEK 4
MELC: Discuss the five major accounts and prepare chart of
accounts.
• K to 12 BEC CG:
ABM_FABM11- IIId-e-21
ABM_FABM11-IIId-e-19 and
Objectives:
The learner shall be able to:
1. Identify and define the five major accounts.
2. Cite examples of each type of account.
3. Prepare chart of accounts.
Prepared by:
MAUREEN P. ABULENCIA
Teacher III
MA. RITA D. GARCIA
Master Teacher I
LEONIDES L. GAVINA
Master Teacher 1
Name: _____________________________________________________ Date: ___________
Grade/Section:________________________________________________________ Score:___________
Title of the Activity: Guess Me: “MISSING – X”
Most Essential Learning Competencies: Discuss the five (5) major accounts and
prepare chart of accounts.
K to 12 BEC CG: ABM_FABM11- IIId-e-19 and ABM_FABM11- IIId-e-21
Directions: Answer Test I, II, and III by the specified directions.
I. Jumbled letters: Arrange the jumbled letters below to form a word. Please write your
answer in the space provided.
1. SOSL - __________
2. IANG -__________
3. SSEAT -__________
4. YTLIILIBA -__________
5. EIONCM -__________
6. PENSSEEX -__________
7. YTIUEQ -__________
8. SOUNTACC -__________
9. EALR -__________
10. LANINOM -__________
32
II. Matching Type
Select your answer from SET A. Write the answer of your choice in the space
provided in SET B.
SET A.
Gain
Owner’s Equity
Account Account
RevenueGain
Owner’sReal
Equity Real
NominalNominal
ExpressExpense
Income Income evenue Gain
Assets Liabilities
Liabilities
SETAssets
B. Definitions/Descriptions
Owner’s Equity Real
SET B.
Assets
Account
Liabilities
Nominal
Expense Income
_______________1. Withdrawal is an example of this account.
_______________2. These are accounts that can be found in the Statement of Financial
Position.
_______________3. Amount owed by the business.
_______________4. Resources owned by the business which can be used for future
economic benefits.
_______________5. It is the difference when you deduct liabilities from assets.
_______________6. It is an income that may or may not arise in the ordinary course of
business.
_______________7. Depletions of assets that result in decreases in equity.
_______________8. Improvements of assets that result in increases in equity.
_______________9. The basic summary device of accounting.
_______________10. It is an income that arises in the ordinary course of business.
33
III. Fill in the blanks
Identify the letter in the space provided
_,I,_,_,I,_,_,TY 1. It is an obligation of the entity to outside parties.
_,_,UI,_,_
2. The difference between total assets and total liabilities.
_,_,_,E,T
3. This is an important commodity that is owned by an enterprise.
_,_,C,_,M,_
4. It includes both revenue and gains.
_,_,_,E,_,S,E,_ 5. Depreciation, depletion, and amortization are examples of this
account.
34
Name: ___________________________________________________Date: _____________
Grade/Section:____________________________________________________Score:____________
Title of the Activity: Choose Me.
Most Essential Learning Competencies: Discuss the five major accounts and prepare
chart of accounts
K to 12 BEC CG: ABM_FABM11- IIId-e-19 and ABM_FABM11- IIId-e-21
Directions: Answer Test I, II, and III by the specified directions.
I.
TRUE or FALSE: Write True if the statement is correct and if not, write False.
_____1. Expenses represent the amount paid for buying goods or services.
_____2. Selling of vehicles which is not a part of the ordinary course of business can
be categorized in income account.
_____3. When you add total liabilities from owner’s equity, you can get total assets.
_____4. Withdrawal can be classified as an expense account.
_____5. Your physical attributes can be classified as assets.
_____6. Total expenses will increase if you will withdraw an asset account.
_____7. When your carabao was impaired, you need to recognize a loss.
_____8. Liability is not an important account, so you need to delete from the list of
accounts even though you are liable to someone.
_____9. Cost of goods sold is an asset account.
_____10. If you can easily attract customers, then that is an example of your asset.
35
II. Multiple Choice: Encircle the letter which bears the right answer.
1. It is a component of Statement of Financial Position.
A. Liabilities
B. Income
C. Expenses
D. Revenue
2. Income can be found in this financial statement.
A. Balance Sheet
B. Statement of Cash Flows
C. Income Statement
D. Changes in Equity
3. All of the following belong to Income Statement. Which one is incorrect?
A. Liabilities
B. Income
C. Expenses
D. Revenue
4. All of the following affect the owners’ equity account except?
A. Income
B. Withdrawal
C. Investment
D. Liability
5. Which of the following is a liability of an enterprise?
A. Cash in the office drawer
B. Building owned by the enterprise
C. Services earned
D. Money borrowed from a bank
6. This is an account deducted to property, plant, and equipment.
A. Land
B. Depreciation Expense
C. Accumulated Depreciation
D. Liabilities
7. All of the following are contra accounts EXCEPT?
A. Freight In
B. Sales Discount
C. Sales Returns
D. Accumulated Depreciation
8. A principal from notes receivable that is to be received within one year of the balance
sheet date is reported as?
A. Current Liabilities
B. Noncurrent Liabilities
C. Current Assets
D. Liabilities
9. Any portion of the notes receivable that is not due within one year of the balance
sheet date is reported as?
A. Current Liabilities
B. Noncurrent Assets
36
C. Current Assets
D. Liabilities
10. Inventory can be classified as?
A. Current Liabilities
B. Noncurrent Liabilities
C. Current Assets
D. Liabilities
III. Identification: What major account is being referred to?
_______________1. Revenues earned by performing services to a client.
_______________2. Revenues earned as a result of sale of merchandise inventory.
_______________3. Materials or supplies which are being consumed in the
production process or rendering of services.
_______________4. These are assets which are held for sale in the ordinary course of
business.
_______________5. Cost of sales
37
Name: __________________________________________________ Date: _____________
Grade/Section:_____________________________________________________ Score:_____________
Title of the Activity: Learn from Me.
Most Essential Learning Competencies: Discuss the five major accounts and prepare
chart of accounts.
K to 12 BEC CG: (ABM_FABM11- IIId-e-19 and ABM_FABM11- IIId-e-21)
Directions: Answer Test I, II, and III by the specified directions.
I. True/False: Write True if the statement is correct and False if it is not. Write your
answer in the space provided.
_____1. Operating revenues and expenses can be categorized by business function
such as producing, selling, administrative and financing.
_____2. All companies have the same chart of accounts.
_____3. There is a possibility that an account must have a subsidiary ledger.
_____4. Chart of accounts is a listing of accounts having balances in the general
ledger.
_____5. Accounts that are available for recording transactions should be in the chart
of accounts.
_____6. Liabilities account have sub-accounts.
_____7. Chart of accounts is not subject for change.
_____8. Income has no sub-accounts.
_____9. Cost of goods sold is an asset account.
_____10. You can use an account title which is NOT reflected in the chart of accounts.
38
II. Identify the following terms as Debit or Credit. Write D for (debit) & C for (credit).
_______________1. Gain on sale of vehicle
_______________2. Interest Revenue
_______________3. Loss on sale of building
_______________4. Office equipment
_______________5. Rent Expense
_______________6. Unearned Income
_______________7. Prepaid Rent
_______________8. Accrued liabilities
_______________9. Withdrawal
_______________10. Capital
III. Formulating the Chart of Accounts: Prepare a chart of accounts based on the given
format.
ABM COMPANY
Chart of Accounts
Balance Sheet Accounts
Account Number
Balance Sheet Accounts
Account Title
Account Number
Assets
Account Title
Income
1
1
2
2
3
Expenses
4
1
5
2
Liabilities
3
1
4
2
5
39
3
6
Owner's Equity
7
1
8
2
40
Name: ____________________________________________________Date:_____________
Grade/Section:____________________________________________________Score:____________
Title of the Activity: Think for me.
Most Essential Learning Competencies: Discuss the five major accounts and prepare
a chart of accounts.
K to 12 BEC CG: BM_FABM11- IIId-e-19 and ABM_FABM11- IIId-e-21
Directions: Answer Test I, II, and III by the specified directions.
I. Identify the missing word/words in the space provided.
1. A ________ of accounts is a listing of the accounts to which transaction can be
posted.
2. _____________ balances are NOT part of a chart of accounts.
3. Asset account has a ___________ normal balance.
4. __________________would be used to accumulate the depreciation taken on assets.
5. Discount on bonds payable is an example of ____________.
6. New accounts can be __________ to the chart of accounts.
7. In every transaction, there are ________ minimum accounts that can be affected.
8. ______________ is a revenue that has not yet earned.
9. Advance payment of the customer is an example of _______________.
10. ______________ is an asset account which is being used in small expenditures.
41
Test II. Enumerate the following on the space provided.
1-5- Current Assets
6-10- Noncurrent Assets
1.________________________________
2.________________________________
3.________________________________
4.________________________________
5.________________________________
6.________________________________
7.________________________________
8.________________________________
9.________________________________
10.________________________________
42
III. Setting up of Chart of Accounts
You need to make a chart of accounts based on the given format.
ABM COMPANY
Chart of Accounts
Balance Sheet Accounts
Account
Number
Account Title
Normal Side
Current Assets
1
2
3
Noncurrent Assets
4
5
6
Current Liabilities
1
2
3
Noncurrent Liabilities
4
5
6
Owner's Equity
1
2
3
43
Description/ Explanation of Account
Answer Key
Simple Activities
Test I.
1. Loss
2. Gain
3. Asset
4. Liability
5. Income
6. Expense
7. Equity
8. Accounts
9. Real
10. Nominal
2. Real
3. Liabilities
4. Assets
5. Owner’s Equity 6. Gain
7. Expense
8. Income
3. Asset
4. Income
Test II.
1. Nominal
9. Account
10. Revenue
Test III.
1. Liability
2. Equity
Answer Key
Moderate Activities
Test I.
1. False 2. True
3. True
4. False
5. True
6. False 7. True
8. False
9. False
10. True
Test II.
1. A
2. C
3. A
4. D
5. D
6. C
7. A
8. C
9.B
10. C
Test III.
1. Income
2. Income
3. Asset
4. Asset
44
5. Expense
5. Expenses
Answer Key
Difficult Activities
Test I.
1. True
2. False
3. True
4. False
5. True
6. True
7. False
8. False
9. False
10. False
1. Credit
2. Credit
3. Debit
4. Debit
5. Debit
6. Credit
7. Debit
8. Credit
9.Debit
10. Credit
Test II.
Test III.
Sample Answers
ABM COMPANY
Chart of Accounts
Balance Sheet Accounts
Balance Sheet Accounts
Account Number
1
2
3
4
5
1
2
3
1
2
Account Title
Assets
101 Cash
102 Accoounts Receivable
103 Inventory
104 Building
105 Land
Liabilities
201 Accounts Payable
202 Notes Payable
203 Bonds Payable
Owner's Equity
301 ABM Capital
302 ABM Withdrawal
45
1
2
1
2
3
4
5
6
7
8
Account Number Account Title
Income
401 Sales
402 Service Revenue
Expenses
501 Salaries Expense
502 Utilities Expense
503 Repair Expense
504 Supplies Expense
505 Rent Expense
506 Travel Expense
507 Tax Expense
508 Interest Expense
Answer Key
EnrichmentActivities
Test I.
1. Chart
2. Account
3. Debit
4. Accumulated Depreciation
5. Contra Account
6. Added
7. Two
8. Deferred Revenue
9. Liability
10. Petty Cash Fund
Test II.
Sample Answers
Current Assets
1. Cash 2. Accounts Receivable 3. Prepaid Expense 4. Inventory
5. Supplies
Noncurrent Assets
6. Vehicles
7. Office Equipment
9. Land
10. Building
8. Furniture and Fixtures
Test III.
Sample Answers
ABM COMPANY
Chart of Accounts
Balance Sheet Accounts
Account
Number
Account Title
Current Assets
Normal
Side
Description/ Explanation of Account
1
101 Cash
Debit
2
102 Accounts Receivable
Debit
3
103 Merchandise Inventory
Noncurrent Assets
104 Building
105 Land
106 Vehicle
Current Liabilities
Debit
Checking account balances, coins, and
other related to the accounts.
Amounts owed by the customer for
services performed or goods sold.
Goods that have been sold to the
customers.
Debit
Debit
Debit
Cost to construct or buy a building.
Cost to buy a land.
Cost to buy vehicle.
Credit
Amounts owed to other company for
services performed or goods sold.
4
5
6
1
201 Accounts Payable
46
2
202 Interest Payable
Credit
3
Credit
4
203 Salaries Payable
Noncurrent Liabilities
204 Bonds Payable
5
205 Long Term Debt
Credit
6
Credit
1
2
206 Mortgage Payable
Owner's Equity
301 ABM Capital
302 ABM Withdrawals
3
303 Income Summary
Credit
Credit
Credit
Debit
47
Interest that has not yet paid by the
company.
Salaries that has not yet paid by the
company.
Company obtain fund by issuing bonds.
Long-term debt that will not fall under
bonds and mortgage payables.
Long-term debt of the business with a
certain asset as security to it.
Amount invested by the owner.
Amount withdrawn by the owner.
Temporary accounts being used at end of
the accounting period.
Republic of the Philippines
DEPARTMENT OF EDUCATION
Region I
San Fernando City
La Union
ACTIVITY SHEETS IN FUNDAMENTALS OF
ACCOUNTANCY, BUSINESS, AND MANAGEMENT 1
(FABM 1), GRADE 11 QUARTER 3, WEEK 5
MELC: The learners illustrate the format of general and special
journals, and illustrate the format of general and subsidiary ledgers.
•
K to 12 BEC CG:
ABM_FABM11-IIIf-24
ABM_FABM11-IIIf-23
to
Objectives:
The learners shall be able to:
4. Define and know the use of a journal and a ledger, differentiate general journal from
special journals, differentiate general ledger from subsidiary ledgers and know the
types and use of special journals and subsidiary ledgers.
5. Learners illustrate general and special journal, and illustrate general and subsidiary
ledgers.
6. Learners post entries from general journal to ledger.
Prepared by:
MAUREEN P. ABULENCIA
MA. RITA D. GARCIA
Teacher III
Master Teacher I
LEONIDES L. GAVINA
Master Teacher I
Name: _____________________________________________________ Date: ___________
Grade/Section: _______________________________________________Score:__________
Title of the Activity: Classify and Identify
Most Essential Learning Competency: The learners illustrate the format of general
and special journals, and illustrate the format of general and subsidiary ledgers.
K to 12 BEC CG: ABM_FABM11-IIIf-23 to ABM_FABM11-IIIf-24
Directions: Identify or classify the concept being referred to.
I.
Fill in the blanks with the word journal or ledger.
1. Accounts Receivable Subsidiary __________________
2. Cash Receipts ___________________
3. Purchases ___________________
4. Accounts Payable Subsidiary ___________________
5. Cash Payments ___________________
6. Sales ____________________
II.
Identify what books of accounts is being asked for.
General Journal
General Ledger
Sales Journal
Cash Receipts Journal
Purchases Journal
Cash Payments Journal
Accounts Receivable Subsidiary Ledger
Accounts Payable Subsidiary Ledger
1. Journal used to record all business transactions not recorded in the special
journals.
2. Journalizing all cash paid (including cash purchases).
3. Tracking individual accounts payable balances of company’s creditors.
4. Journalizing all purchases of merchandise on account.
5. Journalizing all sales of merchandise on account.
6. Grouping of all accounts of a company showing its respective outstanding
balances.
7. Tracking individual accounts receivable balances of company’s customers
48
8. Journalizing all cash received (including cash sales).
III.
Identify the book of accounts being shown on the left of the table.
General Journal
General Ledger
Sales Journal
Cash Receipts Journal
Purchases Journal
Cash Payments Journal
Accounts Receivable Subsidiary Ledger
Accounts Payable Subsidiary Ledger
Book of Accounts
What Books of Account?
1.
2.
3.
4.
49
5.
6.
7.
8.
50
Name: _____________________________________________________ Date: ___________
Grade/Section: _______________________________________________Score: __________
Title of the Activity: Understanding Concepts
Most Essential Learning Competency: The learners illustrate the format of general
and special journals, and illustrate the format of general and subsidiary ledgers.
K to 12 BEC CG: ABM_FABM11-IIIf-23 to ABM_FABM11-IIIf-24
Directions: Read the items very carefully and provide what is being asked
for.
I.
True or False: Write T if the statement is true, if not write F.
___1. Cash sales is recorded in the sales journal.
___2. Accounts are alphabetically arranged in the general ledger.
___3. The number of entries that maybe recorded on each ledger account is
limited to 15.
___4. The Sales Journal records all sales of goods and services on credit but not
including sales for cash.
___5. The Cash Payment Journal records all purchases of goods whether in cash
or credit.
___6. A schedule of Accounts Payable is arranged before all entries in a journal
are journalized.
___7. Totals of the Accounts Receivable Subsidiary Ledger and the balance of
Accounts Receivable in the General Ledger are reconciled to check for
errors.
___8. The credit to Accounts Receivable in the Cash Receipts Journal is posted
in the Accounts Receivable Subsidiary Ledger.
___9. Posting refers to journals while journalizing refers to ledgers.
___10. Sales for cash are recorded in the Sales Journal.
51
II.
Write “J’ if the statement refers to the use of a journal and “L” if it refers to the
use of a ledger.
1. The manager wants to look at the total revenues of the business.
2. An employee wants to check the purchase of an air conditioning unit.
3. An accountant wants to look at the invoice of a laptop purchased 3 years ago.
4. Ensures that double-entry bookkeeping system is observed when recording
transactions.
5. Assists in tracking the flow of expenses for the year.
6. Provides adequate explanation for each entry.
7. Systematic record of transactions.
8. This is where you can find the supporting evidences for each transaction.
9. Provides information about the results of business operation.
10. Detailed information about the specific assets, liabilities, and owner’s equity of
the business.
III.
Draw a Venn Diagram to compare journal and ledger.
Journal
Ledger
52
Name: _____________________________________________________Date: ___________
Grade/Section: _______________________________________________Score:__________
Title of the Activity: Learn to Illustrate
Most Essential Learning Competency: The learners illustrate the format of general
and special journals, and illustrate the format of general and subsidiary ledgers.
K to 12 BEC CG: ABM_FABM11-IIIf-23 to ABM_FABM11-IIIf-24
Directions: Provide an illustration of journals and ledgers.
I.
Using a pencil or ballpoint pen draw an example of a general journal and general
ledger.
a. Draw a general journal
b. Draw a general ledger
53
II.
Using Microsoft Excel or any worksheet in your cell phone or computer illustrate a:
1. Sales Journal
2. Purchases Journal
3. Cash Receipts Journal
4. Cash Payments Journal
54
III.
Post the following transactions to the ledger and prepare the trial balance.
Particulars
Debit
100,000
Cash
Ramos, Capital
To record initial investment of capital
Credit
100,000
Rent Expense
Cash
Paid rent for the month
8,000
Office Supplies
Cash
Bought office supplies for cash
3,500
Laptop
Accounts Payable
Bought laptop on account
42,500
Cash
42,800
8,000
3,500
42,500
Service Revenue
Cash received for services rendered
42,800
Accounts Payable
Cash
Paid laptop bought on account
22,500
Utilities Expense
Cash
Paid utilities for the month
4,500
Salaries Expense
Cash
Paid monthly salary of employee
10,000
22,500
4,500
10,000
55
Name: _____________________________________________________Date: ___________
Grade/Section: ______________________________________________Score: ___________
Title of the Activity: Enrichment Activities
Most Essential Learning Competency: The learners illustrate the format of general
and special journals, and illustrate the format of general and subsidiary ledgers.
K to 12 BEC CG: ABM_FABM11-IIIf-23 to ABM_FABM11-IIIf-24
Directions: If you were not able to get a passing score for the first activities,
answer the succeeding activities below.
I.
Read the statements below and write the letter of your choice.
A. Sales Journal
B. Cash Receipts Journal
C. Purchases Journal
D. Cash Payments Journal
In what special journal do you record?
1. The cash sales of a business?
2. The purchases paid for in cash by the business?
3. The sales made on account of a business?
4. The purchases made on account by the business?
5. Payment of accounts payable of a business?
6. Initial invest of an owner?
7. Receipt of payment from customers?
8. Payment of water and electricity?
9. Payment of the salaries of your employees?
10. Receipt of interest from the bank.
56
II.
Identify the errors reflected in the Cash Receipts Journal and encircle it with a red
ballpen. Write a short explanation of why it is wrong.
CASH RECEIPTS JOURNAL
III.
Post the following transactions to the ledger and prepare the trial balance to check
your work. Write your answers on a ledger.
Particulars
Debit
150,000
Cash
XYZ, Capital
To record initial investment of capital
Cash
Credit
150,000
50,000
Loan Payable
Cash loan from the bank
50,000
Office Supplies
Cash
Bought office supplies for cash
5,375
Laptop
Accounts Payable
Bought laptop on account
33,500
Cash
42,800
5,375
33,500
Service Revenue
Cash received for services rendered
42,800
Accounts Payable
Cash
Partial payment for laptop bought on account
16,750
Utilities Expense
3,225
57
16,750
Cash
Paid utilities for the month
3,225
Salaries Expense
Cash
Paid monthly salary of employee
9,500
9,500
58
Answer Key:
Simple Activities
Test I.
1. Ledger
2. Journal
3. Journal
4. Ledger
5. Journal
6. Journal
Test II.
1. General Journal
2. Cash Payments Journal
3. Accounts Payable Subsidiary Ledger
4. Purchases Journal
5. Sales Journal
6. General Ledger
7. Accounts Receivable Subsidiary Ledger
8. Cash Receipts Journal
Test III.
1. Accounts Receivable Subsidiary Ledger
2. Purchases Journal
3. General Journal
4. Sales Journal
5. Accounts Payable Subsidiary Ledger
6. Cash Payments Journal
7. Cash Receipts Journal
8. General Ledger
Moderate Activities
Test I.
1. False
2. False
3. False
4. True
5. False
Test II.
1. L
2. J
3. J
4. J
5. L
6. False
7. True
8. True
9. False
10. False
6. J
7. J
8. J
9. L
10. L
59
Challenging Activities
Test III.
TOTAL DEBIT
DEBIT BALANCE
Cash
Debit
Explanation
100,000 Paid rent
42,800 Bought office supplies
Paid A/P laptop
Paid utilities
Paid salary
142,800 TOTAL CREDIT
94,300
Explanation
Bought office supplies
TOTAL DEBIT
DEBIT BALANCE
Office Supplies
Debit
Explanation
3,500
3,500
3,500
Explanation
Initail investment
Services rendered
Credit
8,000
3,500
22,500
4,500
10,000
48,500
Credit
Laptop
Explanation
Bought laptop
TOTAL DEBIT
DEBIT BALANCE
Debit
42,500
42,500
42,500
Explanation
Paid A/P laptop
TOTAL CREDIT
Accounts Payable
Debit
Explanation
22,500 Bought laptop on account
22,500 TOTAL CREDIT
CREDIT BALANCE
Credit
42,500
42,500
20,000
Ramos, Capital
Debit
Explanation
Initial investment
TOTAL CREDIT
CREDIT BALANCE
Credit
100,000
100,000
100,000
Service Revenue
Debit
Explanation
Services rendered
TOTAL CREDIT
CREDIT BALANCE
Credit
42,800
42,800
42,800
Explanation
Explanation
60
Explanation
Credit
Explanation
Paid Rent
TOTAL DEBIT
DEBIT BALANCE
Rent Expense
Debit
Explanation
8,000
8,000
8,000
Explanation
Paid utilities
TOTAL DEBIT
DEBIT BALANCE
Utilities Expense
Debit
Explanation
4,500
4,500
4,500
Explanation
Paid salaries of employees
TOTAL DEBIT
DEBIT BALANCE
Salaries Expense
Debit
Explanation
10,000
10,000
10,000
TRIAL BALANCE
Explanation
Cash
Office Supplies
Laptop
Accounts Payable
Ramos, Capital
Service Revenue
Rent Expense
Utilities Expense
Salaries Expense
TOTAL
Debit
94,300
3,500
42,500
Credit
Credit
Credit
20,000
100,000
42,800
8,000
4,500
10,000
162,800
Enrichment Activities
Test I.
1. Cash Receipts Journal
2. Cash Payments Journal
3. Sales Journal
4. Purchases Journal
5. Cash Payments Journal
Credit
6. Cash Receipts Journal
7. Cash Receipts Journal
8. Cash Payments Journal
9. Cash Payments Journal
10. Cash Receipts Journal
61
162,800
Test II.
1. In a Cash Receipts Journal when we receive cash it is from accounts receivable
not from accounts payable.
2. Sales Accounts should be credited not debited.
3. Transportation expense or any other expense is not part of cash receipts journal.
4. Transportation expense should not affect sales.
5. Payment from a customer should affect accounts receivable and not other
accounts.
Test III.
Explanation
Initial investment
Cash proceeds from bank
loan
Services rendered
Cash
Debit
Explanation
150,000 Bought office supplies
50,000 Paid A/P laptop
TOTAL DEBIT
DEBIT BALANCE
42,800 Paid utilities
Paid salary
242,800 TOTAL CREDIT
207,950
Explanation
Bought office supplies
TOTAL DEBIT
DEBIT BALANCE
Office Supplies
Debit
Explanation
5,375
5,375
5,375
Credit
5,375
16,750
3,225
9,500
34,850
Credit
Laptop
Explanation
Bought laptop
TOTAL DEBIT
DEBIT BALANCE
Debit
33,500
33,500
33,500
62
Explanation
Credit
Explanation
Paid A/P laptop
TOTAL CREDIT
Explanation
Explanation
Explanation
Accounts Payable
Debit
Explanation
16,750 Bought laptop on account
16,750 TOTAL CREDIT
CREDIT BALANCE
Credit
33,500
33,500
16,750
Loans Payable
Debit
Explanation
Cash loan from bank
TOTAL CREDIT
CREDIT BALANCE
Credit
50,000
50,000
50,000
XYZ, Capital
Debit
Explanation
Initial investment
TOTAL CREDIT
CREDIT BALANCE
Credit
150,000
150,000
100,000
Service Revenue
Debit
Explanation
Services rendered
TOTAL CREDIT
CREDIT BALANCE
Credit
42,800
42,800
42,800
Explanation
Paid Utilities
TOTAL DEBIT
DEBIT BALANCE
Utilities Expense
Debit
Explanation
3,225
3,225
3,225
Explanation
Paid salaries of employees
TOTAL DEBIT
DEBIT BALANCE
Salaries Expense
Debit
Explanation
9,500
9,500
9,500
63
Credit
Credit
TRIAL BALANCE
Explanation
Cash
Office Supplies
Laptop
Accounts Payable
Loans Payable
Ramos, Capital
Service Revenue
Utilities Expense
Salaries Expense
TOTAL
Debit
207,950
5,375
33,500
Credit
16,750
50,000
150,000
42,800
3,225
9,500
259,550
64
259,550
Rubrics
Moderate Activities
Test III.
Criteria
Concept
Arrangement
Content
Presentation
Descriptors
5
3
Each section of the diagram Each section of the diagram contains
contains 3 facts easily identified. very few facts that are not easily
identified.
Reflects factual information that Contains no factual information and
corresponds with the appropriate does not correspond to the
section of the diagram.
appropriate section of the diagram.
Clean, neat, and well organized
Messy and unorganized. Not well
put together.
Challenging Activities
Test I.
Descriptors
Criteria
Knowledge
Neatness
5
The drawing represents a clear
illustration of what is being asked
for and the details are complete.
The drawing has very minimal
erasures and the drawing was
done carefully.
3
The drawing is not representative of
what is being asked for.
The drawing has many erasures and
it was done with haste.
Test II.
Descriptors
Criteria
Knowledge
5
3
The student does not know how to
use electronic spreadsheet and the
drawing is not representative of
what is being asked for.
The student has a clear
understanding of what needs to
be illustrated using electronic
spreadsheet and the illustration
represents what is being asked
for.
Format/Appearance The elements in the illustration The elements in the illustration are
are organized and pleasing to the generally unorganized and not
eye.
pleasing to the eye.
65
Republic of the Philippines
DEPARTMENT OF EDUCATION
Region I
San Fernando City
La Union
ACTIVITY SHEETS IN FUNDAMENTALS OF
ACCOUNTANCY, BUSINESS AND MANAGEMENT 1
(FABM 1), GRADE 11, 3RD QUARTER, WEEK 6
MELC: The learners analyze common business transactions using
Rules of Debit and Credit and solve simple problems and exercises in
the analyses of business transactions.
•
K to 12 BEC CG: ABM_FABM11-IIIg-j-27, 28
Objectives:
The learners shall be able to:
7. Identify the Rules of Debit and Credit.
8. Analyze common business transactions using the Rules of Debit and Credit.
9. Solve exercises analyzing the business transactions.
Prepared by:
MAUREEN P. ABULENCIA
MA. RITA D. GARCIA
Teacher III
Master Teacher I
LEONIDES L. GAVINA
Master Teacher 1
Name: _____________________________________________________Date: ___________
Grade/Section:_______________________________________________Score:___________
Title of the Activity: Rules of Thumb
Most Essential Learning Competency: The learners analyze common business
transactions using Rules of Debit and Credit and solve problems and exercises in the
analyses of business transactions.
K to 12 BEC CG: ABM_FABM11-IIIg-j-27, 28
I. Directions: Fill in the blanks. Write your answer in the space provided.
1. Debit increase in Assets and Credit Decrease in __________.
2. Debit decrease in __________ and Credit increase in Liabilities.
3. Debit decrease in __________ and Credit increase in Owner’s Equity.
4. ____________ and (5). ___________ increases Owner’s Equity.
6. ____________ and (7). _________ decreases Owner’s Equity.
II. Directions: Indicate whether the accounts have a Debit or Credit balance. Put a check
(✓) in the corresponding column.
ACCOUNT
DEBIT
1. Assets
2. Liabilities
3. Owner’s, Capital
4. Owner’s, Withdrawal
5. Revenues
6. Expenses
66
CREDIT
III. Directions: Using the Rules of Debit and Credit analyze the transactions below
and indicate (+) if the account increase, (-) if the account decrease, and (0) if the
account is not affected.
TRANSACTION
ASSETS
LIABILITIES
OWNER’S
EQUITY
1. You invested cash in the business.
2. Paid Taxes and Licenses.
3. Bought supplies on cash.
4. Bought Equipment on account.
5. Bought furniture on credit.
6. Rendered service on cash.
7. Paid salaries & wages to
employees.
8. Paid the account to creditors.
9. Withdrew cash for personal use.
10. Rendered service to credit
customer.
67
Name: _____________________________________________________Date: ___________
Grade/Section:_______________________________________________Score:___________
Title of the Activity: Rule of Thumb
Most Essential Learning Competency: The learners analyze common business
transactions using Rules of Debit and Credit and solve simple problems and exercises in
the analyses of business transactions.
K to 12 BEC CG: ABM_FABM1-111g-j-27-28
I.
Directions: Analyze the following transactions and apply the Rules of Debit and
Credit. Write your answer in the space provided.
As a graduate of ABM Strand, you decided to open a Beauty Shop business. The
following transactions transpired during the first month of your business operation:
1. You invested ₱20,000 cash in your business.
_____________________________________________________________
2. You paid taxes and licenses, ₱1,500.
_____________________________________________________________
3. Bought furniture and fixtures on credit ₱3,000.
_____________________________________________________________
4. Bought supplies, ₱1,200 on cash.
_____________________________________________________________
5. Paid the account due to creditors.
_____________________________________________________________
6. Received ₱5,000 from various customers for services rendered.
_____________________________________________________________
7. You withdraw ₱2,500 cash for personal use.
_____________________________________________________________
8. Billed a customer for ₱1,500 for services rendered.
_____________________________________________________________
68
9. Paid salaries and wages to employees, ₱1,200.
_____________________________________________________________
10. Collected the full amount due from an account customer.
_____________________________________________________________
II. Directions: Analyze the following transactions. Apply the Rules of Debit and
Credit and indicate the specific asset, liability and owner’s equity (__, Capital, __,
Withdrawal,
Revenue,
Expenses)
affected.
Example:
Debit
increase
in
Asset-Accounts Receivable, and Credit increase in Owner’s Equity-Repair Revenue.
Write your answer in the space provided.
As a graduate of ABM Strand, you decided to open a Repair Shop business. The
following transactions transpired during the first month of operating your business:
Jan. 2
You invested ₱50,000 in the business of which ₱30,000 was deposited in
the bank.
_________________________________________________________
5
Purchased supplies worth ₱3,000 out of cash on hand.
_________________________________________________________
6
Issued a check for ₱4,000 in payment for furniture acquired.
_________________________________________________________
7
Purchased equipment for ₱8,000 on account.
_________________________________________________________
8
Received ₱6,000 from various customers for services rendered.
_________________________________________________________
9 Received a check from a customer in payment for repair service
rendered, ₱2,500.
_________________________________________________________
10 Deposit ₱8,500 in the bank.
_________________________________________________________
12 Draw a check for ₱5,000 against the business account for a personal use.
_________________________________________________________
15 Paid Taxes and licenses out of cash on hand, ₱800.
69
_________________________________________________________
20 Issued check for partial payment to a creditor, ₱4,000.
_________________________________________________________
III. Analyze the following transactions and indicate what specific accounts are
affected under the column Debit and Credit.
As a graduate of ABM Strand, you decided to open a Beauty Shop business. The
following transactions transpired during the first month of operating your business:
TRANSACTION
DEBIT
1. You invested ₱20,000 cash in your business.
2. Paid taxes and licenses, ₱1,500.
3. Purchased furniture and fixtures on credit,
₱3,000.
4. Purchased supplies, ₱1,200 on cash.
5. Paid the account due to creditors.
6. Received ₱5,000 from various customers for
services rendered.
7. You withdrew ₱2,500 cash for personal use.
8. Billed a customer for ₱1,500 for services
rendered.
9. Paid salaries and wages to employees.
10. Collected the full amount due from account
customer.
70
CREDIT
Name:___________________________________________________Date: ______________
Grade/Section: ____________________________________________Score: _____________
Title of the Activity: Rule of Thumb
Most Essential Learning Competency: The learners analyze common business
transactions, and solve simple problems and exercises in the analyses of business
transactions.
K to 12 BEC CG: ABM_FABM11-IIIg-j-27, 28
I.
Directions: Create your own (10) service business transactions on the first month of
operation, and analyze and apply the Rules of Debit and Credit. Write your answer in
the space provided.
You are about to start a business. Create your own (10) service business transactions
on the first month of operation, and analyze by applying the Rules of Debit and Credit.
TRANSACTION
DEBIT
CREDIT
Example: Paid advertising
Advertising
Cash
Expense
1.
2.
3.
4.
5.
6.
7.
8.
9.
71
10.
II. Create a simple service business transaction based on the effects on the Rules of Debit
and Credit. Write your answer in the space provided.
1. Increase in asset and increase in owner’s equity.
________________________________________________________________
2. Increase in asset and increase in liability.
________________________________________________________________
3. Decrease in assets and decrease in owner’s equity.
________________________________________________________________
4. Increase in liability and decrease in owner’s equity.
________________________________________________________________
5. Decrease in asset and decrease in liability.
________________________________________________________________
6. Increase in one asset and decrease in another asset.
________________________________________________________________
7. Increase in one liability and decrease in another liability.
________________________________________________________________
8. Decrease in liability and increase in owner’s equity.
________________________________________________________________
9. Increase in asset, increase in liability and increase in owner’s equity.
_________________________________________________________________
72
10. Decrease in asset and decrease in owner’s equity.
_________________________________________________________________
III. Using the Rules of Debit and Credit, analyze your business transactions below, and
state the specific account and the corresponding amount involved that should be debited
and credited. Write your answer in the space provided.
TRANSACTION
DEBIT
CREDIT
Accounts
Service
Example:
Rendered service revenue on account, ₱2,500
Revenue
Receivable ₱2,500 ₱2,500
1.
Cash ₱10,000
X, Capital ₱10,000
2.
Furniture ₱2,000
Accounts
Payable
₱2,000
3.
Supplies ₱500
Cash ₱500
4.
Cash ₱5,000
Service
Revenue
₱5,000
5.
Wages
Expense Cash ₱1,200
₱1,200
Accounts Payable Cash ₱1,000
6.
₱1,000
7.
X, Drawing ₱750
Cash ₱750
8.
Accounts Payable Notes
Payable
₱1,000
₱1,000
9.
Cash ₱5,000
X, Capital ₱5,000
10.
Utility
Expense Utility
₱850
₱850
73
Payable
Name:____________________________________________________Date: _____________
Grade/Section:______________________________________________Score:____________
Title of the Activity: Analyses and application of the Rules of Debit and Credit.
Most Essential Learning Competency: The learner define accounting; describe the
nature of accounting; narrate the history/origin of accounting; define external users and
give examples; and define internal users and give examples.
K to 12 BEC CG: ABM_FABM11-IIIg-j-27, 28
I. Directions: Using the Rules of Debit and Credit analyze the transactions below and
indicate (+) if the account increase, (-) if the account decrease, and (0) if the account is
not affected.
TRANSACTION
ASSETS
LIABILITIES OWNER’S
EQUITY
1. Purchased supplies on account, ₱1,500.
2. Paid advertising, ₱1,000.
3. Billed a customer for services rendered,
₱3,500.
4. Paid rent for the month, ₱2,000.
5.
Make
additional
investment
of
equipment, ₱4,500.
6. Paid the account due to creditor.
7. Collected the account due from
customer.
8. Withdrew supplies for personal use,
₱500.
9. Received ₱5,000 for services rendered.
74
10. Paid salaries of employees, ₱2,000.
II. Using the Rules of Debit and Credit, analyze your business transactions below, and
state the specific account and the corresponding amount involved that should be debited
and credited. Write your answer in the space provided. Example: Collected the account
due from customers, P5,000. Dr.-Cash P5,000 Cr. - Accounts Receivable P5,000.
1. You invested ₱500,000 in your Photocopying business of which ₱400,000 was
deposited in the bank.
2. Purchased Photocopying equipment for ₱300,000. Issued check for ₱50,000 as
downpayment and the balance on account.
_______________________________________________________________
3. Issued check in payment of taxes and licence, ₱2,000.
_______________________________________________________________
4. Issued check in payment for rent of the month, ₱1,500.
_______________________________________________________________
5. Purchased supplies out of cash on hand, ₱2,000.
_______________________________________________________________
6. Received ₱8,000 for photocopying services rendered.
______________________________________________________________
7. Deposit ₱8,000 in the bank.
______________________________________________________________
8. Paid salaries and wages of employees, ₱2,500 out of cash on hand.
_______________________________________________________________
9. Issued check for ₱50,000 in partial payment of account due to creditor.
_______________________________________________________________
10. Rendered photocopying services to various customers on account, ₱2,000.
_______________________________________________________________
75
III. The following are the effects of your business transactions during the second month of
operating ABM Grocery. Using the Rules of Debit and Credit, analyze what business
transactions transpired.
TRANSACTION
DEBIT
CREDIT
1.
Equipment
X, Capital ₱15,000
₱15,000
2.
Furniture ₱20,000
Cash ₱20,000
3.
Supplies ₱500
Accounts Payable
₱500
Cash ₱5,000
4.
Accounts
Receivable ₱5,000
5.
Rent
Expense Cash ₱1,200
₱1,200
6.
Accounts Payable Notes
Payable
₱1,000
₱1,000
7.
X, Drawing ₱750
Supplies ₱750
8.
Accounts Payable Cash ₱1,000
₱1,000
Cash ₱5,000
9.
Service
₱5,000
10.
Utility
₱850
76
Expense Cash ₱850
Revenue
Answer Key:
Simple Activities:
Test I.
1. ASSETS
5. REVENUES
2. LIABILITIES
6. DRAWINGS
3. OWNER’S EQUITY
7. EXPENSES/COSTS
4. INVESTMENTS/CAPITAL
Test II.
1. DEBIT
4. DEBIT
2. CREDIT
5. CREDIT
3. CREDIT
6. DEBIT
Test III.
ASSETS
LIABILITIES
OWNER’S EQUITY
1.
+
0
+
2.
-
0
-
3.
+-
0
0
4.
+
+
0
5.
+
+
0
6.
+
0
+
7.
-
0
-
8.
-
-
0
9.
-
0
-
10.
+
0
+
Moderate Activities
Test I.
1. Increase in assets and increase in Owner’s equity
77
2. Decrease in assets and decrease in owner’s equity
3. Increase in assets and increase in liabilities
4. Increase in assets and decrease in another assets
5. Decrease in assets and decrease in liabilities
6. Increase in assets and increase in owner’s equity
7. Decrease in assets and decrease in owner’s equity
8. Increase in assets and increase in owner’s equity
9. Decrease in assets and decrease in owner’s equity
10. Increasen in assets and decrease in another assets
Test II.
Jan. 2
Increase in assets- Cash on Hand and Cash in Bank and
Increase in owner’s equity - X, Capital
5
Increase in assets - Supplies and Decrease in another assets
6
Decrease in liabilities - Accounts Payable and
Decrease in assets - Cash in Bank
7
Increase in assets - Equipment and
Increase in liabilities- Accounts Payable
8
Increase in assets - Cash on Hand and Increase in owner’s equity
9
Increase in assets - Cash on Hand and
Increase in owner’s equity - Service Revenue
10 Increase in assets - Cash in Bank and
Decrease in another assets- Cash in Bank
12 Decrease in assets - Cash in Bank and
Decrease inowner’s equity - X, Personal
Challenging Activities
Test I.
Learners will be the one to give the answer since there are varied transactions and
the teacher will check their work.
78
Test II.
Learners will be the one to give the answer since there are varied
transactions and the teacher will check their work.
Test III.
1. The owner invested P10,000 in the business.
2. Bought Furniture on account, P2,000.
3. Bought supplies on cash, P500.
4. Received P5,000 for services rendered.
5. Paid wages, P1,200.
6. Paid the account due creditor, P1,000.
7. Withdrew P750 for personal use.
8. Issued promissory note P1,000 to apply on the account due today.
9. Invested additonal P5,000 in the business.
10. Received utility bill, P850.
Enrichment Activities
Test I.
ASSETS
LIABILITIES
OWNER’S EQUITY
1.
+
+
0
2.
-
0
-
3.
+
0
+
4.
-
0
-
5.
+
0
+
6.
-
-
0
7.
-
-
0
8.
-
0
-
9.
+
0
+
10.
-
0
-
79
Test II.
1.
2.
Dr. Cash on Hand
₱100,000
Dr. Cash in Bank
₱400,000
Cr. X, Capital
₱500,000
Dr. Photocopying
Equipment
₱300,000
Cr. Cash in Bank
₱50,000
Cr. Accounts Payable
₱250,000
3.
Dr. Taxes and Licenses ₱2,000
Expense
Cr. Cash in Bank
₱2,000
4.
Dr. Rent Expense
₱1,500
Cr. Cash in Bank
₱1,500
5.
Dr. Supplies
₱2,000
Cr. Cash on Hand
₱2,000
6.
Dr. Cash on Hand
₱8,000
Cr. Photocopying Revenue
₱8,000
7.
Dr. Cash in Bank
₱8,000
Cr. Cash on Hand
₱8,000
8.
Dr. Salaries and Wages ₱2,500
Expense
Cr. Cash on Hand
₱2,500
9.
Dr. Accounts Payable
₱50,000
Cr. Cash in Bank
₱50,000
10.
Dr. Accounts Receivable
₱2,000
Cr. Photocopying Revenue
₱2,000
Test III.
1. Invested equipment, P15,000 in the business.
2. Bought Furniture on cash, P20,000
3. Bought supplies on account, P500.
4. Collected account due from customer, P5,000.
5. Paid rent, P1,200.
6. Issued promissory note for account due today, P1,000.
7. Withdrew supplies P750 for personal use.
8. Paid P1,000 to creditors.
9. Received P5,000 for services rendered.
10. Paid utilities, P850.
80
Republic of the Philippines
DEPARTMENT OF EDUCATION
Region I
San Fernando City
La Union
ACTIVITY SHEETS IN FUNDAMENTALS OF
ACCOUNTANCY, BUSINESS, AND MANAGEMENT 1
(FABM 1), GRADE 11, 3rd QUARTER, WEEK 7 - 9
MELC: The learner describes the nature of transactions in a service
business, records transactions of a service business in the general
journal, posts transactions in the ledger and prepares the trial balance.
•
K to 12 BEC CG:
ABM_FABM11-IVa-d-32
ABM_FABM11-IVa-d-29
Objectives:
The learner shall be able to:
1.
2.
3.
4.
5.
Understand the accounting cycle of a service business.
Know the account titles used in journalizing entries.
Record transactions of a service business in the general journal.
Post transactions in the general ledger.
Prepare a trial balance.
Prepared by:
MAUREEN P. ABULENCIA
Teacher III
MA. RITA D. GARCIA
Master Teacher I
LEONIDES L. GAVINA
Master Teacher I
to
Name: ______________________________________________________Date:___________
Grade/Section: _______________________________________________Score:__________
Title of the Activity: Based on Facts
Most Essential Learning Competency: The learner describes the nature of
transactions in a service business, records transactions of a service business in the
general journal, posts transactions in the ledger and prepares the trial balance.
K to 12 BEC CG: ABM_FABM11-IVa-d-29 to ABM_FABM11-IVa-d-32
Directions: Read and follow the directions for each of the activities below.
I.
True or False
Direction: Write true if the statement is true and if not, write false.
1. The accounting cycle is a series of non-recurring accounting steps or processes
that span from the start to the end of a particular accounting period.
2. In the accounting cycle, posting may precede journalizing.
3. An example of a business or company that uses fiscal year is a school. Their
fiscal year usually starts on June 1 and ends on May 31.
4. The account Service Revenue is unique to service businesses.
5. Transaction analysis is a required step in the accounting cycle.
6. A transaction is not a business transaction if it does not affect the accounting
equation.
7. A compound journal entry is a journal entry that has one debit account and one
credit account.
8. After posting, an account that has a total debits more than total credits will have
a credit balance.
9. All errors in the trial balance can be rectified by a correcting journal entry.
10. Reversing journal entries is an optional step in the accounting cycle.
81
II.
Direction: Arrange the following steps or processes in the accounting cycle. Place
the numbers 1 to 10 in the space provided for, 1 being the first step and 10 being the
last step.
_____ Posting journal entries to the ledger
_____ Preparing adjusted trial balance
_____ Preparing post-closing trial balance
_____ Journalizing the business transactions
_____ Analyzing the business transactions from source documents
_____ Preparing the unadjusted trial balance
_____ Journalizing and posting reversing journal entries
_____ Journalizing and posting closing journal entries
_____ Journalizing and posting adjusting journal entries
_____ Preparing financial statements
III.
Direction: Identify the components of the journal entry.
Date of the transaction
Explanation
Debit account
Credit account
Reference (for posting reference)
Debit amount
Credit amount
1. ______________________________
2. ________________________________
2. ______________________________
3. ________________________________
5. ______________________________
82
Name: _____________________________________________________ Date: ___________
Grade/Section: ______________________________________________ Score: __________
Title of the Activity: Name that Account
Most Essential Learning Competency: The learner describes the nature of
transactions in a service business, records transactions of a service business in the
general journal, posts transactions in the ledger and prepares the trial balance.
K to 12 BEC CG: ABM_FABM11-IVa-d-29 to ABM_FABM11-IVa-d-32
Directions: Identify what account is being described or asked for.
I.
Identify what account title is being described in the statement below.
Accounts Receivable
Furnitures and Fixtures
Communication Expense
Office Supplies
Accounts Payable
Rent Expense
Office Equipment
Notes Payable
Utility Expense
___________1. Beth, the accountant of Raine Drug Store paid its water and electric bill for the
month. Under what account would she record the expense?
___________2. Jun bought tables and chairs for his computer shop. Under what asset account
would the tables and chairs be recorded in?
___________3. Lily, an online seller sold items on account. Her customers promised to pay her
after 60 days. In what asset account would she record this?
___________4. JM, the owner of JM’s Bikes paid for the use of space of his bike shop. In what
expense account would this be recorded?
___________5. Cindy bought a laptop for her newly opened accounting office. In what asset
account will this be recorded?
___________6. Pam, the Admin Officer of Napakaganda Namin High School bought coupon
bonds, notebooks, ball pens, pencils and calculators on account. In what
liability account would she record this?
___________7. Bea paid for the store’s monthly telephone bill. In what expense account would
this be recorded in?
83
___________8. Pam, the Admin Officer of Napakaganda Namin High School bought coupon
bonds, notebooks, ball pens, pencils and calculators on account. In what asset
account would she record this?
II. Direction: In each of the transactions below, indicate the account to be debited and the
account to be credited.
Cash
Notes Payable
Communication Expense
Accounts Receivable
Capital
Utility Expense
Equipment
Drawing
Rent Expense
Transactions
Accounts Payable
Service Revenue
Account
Debited
Account
Credited
a. The owner invested cash to the business.
b. Borrowed money from a bank and issued a
note.
c. Rendered photocopying service for cash.
d. Received a bill for electricity consumption.
e. Received payment from customers for
services rendered last month.
f. Sent a bill for repairs made today.
g. Bought equipment for cash.
h. The owner withdrew cash for personal use.
i.
Paid the rent of office space.
j.
Received and paid the monthly telephone
bill.
III. Direction: Name the accounts that are affected by the following transactions.
1. A check was written to pay for insurance.
___________________________________________________________________________
2. A check was received for service rendered.
___________________________________________________________________________
3. A check was issued to pay salaries.
___________________________________________________________________________
4. Services were rendered to a customer on account.
___________________________________________________________________________
5. Office supplies were bought on account.
___________________________________________________________________________
84
Name: ______________________________________________________Date: __________
Grade/Section: _______________________________________________Score:__________
Title of the Activity: Straight Problem
Most Essential Learning Competency: The learner describes the nature of
transactions in a service business, records transactions of a service business in the
general journal, posts transactions in the ledger and prepares the trial balance.
K to 12 BEC CG: ABM_FABM11-IVa-d-29 to ABM_FABM11-IVa-d-32
Directions: Prepare the journal entries, post the journal entries using
t-accounts, and prepare the trial balance.
I.
Prepare the journal entries for the transactions below. Write your answers in a
Journal. The Chart of Accounts of Mapangarap Accounting Firm is as follows:
Cash
Mapangarap, Capital
Permits and Licenses Expense
Rent Expense
Accounts Receivable
Mapangarap, Drawing
Utility Expense
Accounts Payable
Office Supplies
Service Revenue
Salary Expense
Dec 1 - May Mapangarap invested ₱150,000 cash into her newly formed
accounting firm.
Dec 2 – Purchased ₱5,000 worth of office supplies on account.
Dec 4 – Paid ₱10,000 office rent.
Dec 7 – Paid ₱3,500 for business permit and other licenses.
Dec 10 – Received ₱9,500 cash for services rendered.
Dec 18 – Paid ₱2,500 of the supplies bought on account in Dec 2.
Dec 21 – Billed several clients, ₱25,400 for services rendered.
Dec 26 – Withdrew ₱3,000 cash for the owner’s personal use.
Dec 27 – Received cash, ₱12,450 from customers on account.
Dec 28 – Received utility bill for the month, ₱2,650.
Dec 30 – Paid salary of office clerk, ₱13,000.
85
II.
Post the entries to t-accounts.
86
III.
Prepare the Trial Balance
87
Name:______________________________________________________Date:___________
Grade/Section: _______________________________________________Score:__________
Title of the Activity: Straight Problem
Most Essential Learning Competency: The learner describes the nature of
transactions in a service business, records transactions of a service business in the
general journal, posts transactions in the ledger and prepares the trial balance.
K to 12 BEC CG: ABM_FABM11-IVa-d-29 to ABM_FABM11-IVa-d-32
Directions: Prepare the journal entries, post the journal entries using
t-accounts, and prepare the trial balance.
I.
Prepare the journal entries for the transactions below. Write your answers in a
journal. The Chart of Accounts of Albularyo Clinic is as follows:
Cash
Notes Payable
Rent Expense
Clinic Supplies
Albularyo, Capital
Utility Expense
Medical Equipment
Albularyo, Drawing
Salary Expense
Furnitures and Fixtures
Professional Fees
Aug 1 - Juan Albularyo, M.D. invested ₱160,000 cash in his business.
Aug 2 - He paid clinic space rent for the month amounting to ₱10,000.
Aug 5 - He bought clinic supplies like thermometer, subscription pad, tongue
depressor and others for ₱15,500.
Aug 7 - He bought medical equipment from Sta. Cruz Medical Supplies, ₱160,000,
paying ₱60,000 cash and issued promissory note for the balance.
Aug 7 - He bought tables, chairs and other furnitures for his clinic for cash,
₱45,000.
Aug 15 - Paid Sta. Cruz Medical Supplies ₱40,000 as part payment on amount
owed on medical equipment previously bought.
Aug 15 - Recorded professional fees for cash amounting to ₱20,500.
Aug 26 - Albularyo withdrew cash for personal use, ₱5,500.
Aug 28 - Received and paid bill for electricity and water - ₱4,200.
Aug 30 - Paid salary of his secretary, ₱10,000.
Aug 31 - Recorded professional fees for cash amounting to ₱35,000
88
II.
Post the entries to t-accounts.
89
III.
Prepare the trial balance.
90
Answer Key:
Simple Activities
Test I.
1. False
2. False
3. True
4. True
5. True
6. True
7. False
8. False
9. False
10. True
Test II.
3
6
9
2
1
4
10
8
5
7
Test III.
1. Credit account
2. Reference (for posting reference)
3. Debit amount
4. Date of the transaction
5. Explanation
Moderate Activities
Test I.
1. Utility Expense
2. Furnitures and Fixtures
3. Accounts Receivable
4. Rent Expense
5. Office Equipment
6. Accounts Payable
7. Communication Expense
8. Office Supplies
91
Test II.
Account
Debited
Account
Credited
a. The owner invested cash to the business.
Cash
Capital
b. Borrowed money from a bank and issued a
note.
c. Rendered photocopying service for cash.
Cash
Notes Payable
Cash
Service
Revenue
d. Received a bill for electricity consumption.
Utility Expense
Accounts
Payable
Cash
Accounts
Receivable
Accounts
Receivable
Service
Revenue
g. Bought equipment for cash.
Equipment
Cash
h. The owner withdrew cash for personal use.
Drawing
Cash
Transactions
e. Received payment from customers for
services rendered last month.
f.
Sent a bill for repairs made today.
i.
Paid the rent of office space.
Rent Expense
Cash
j.
Received and paid the monthly telephone
bill.
Communication
Expense
Cash
Test III.
1.
2.
3.
4.
5.
Insurance Expense and Cash
Cash and Service Revenue
Salaries Expense and Cash
Accounts Receivable and Service Revenue
Office Supplies and Accounts Payable
92
Challenging Activities
Test I.
Date
Dec 1
Particulars
Ref
Cash
Debit
150,000
Mapangarap, Capital
Initial investment
Dec 2
Date
Dec 4
Dec 7
Dec 10
150,000
Office Supplies
Accounts Payable
Bought office supplies on account
Particulars
Rent Expense
Cash
Paid office rent
5,000
5,000
Ref
Debit
10,000
Dec 21
Dec 26
Dec 27
Permits and Licenses Expense
Cash
Paid business permits and other
licenses
3,500
Cash
9,500
3,500
9,500
Accounts Payable
Cash
Paid accounts payable
2,500
Accounts Receivable
Service Revenue
Billed clients for services rendered
25,400
Mapangarap, Drawing
Cash
Owner’s cash withdrawal
3,000
Cash
12,450
2,500
25,400
3,000
Accounts Receivable
Collection of Accounts Receivable
Dec 28
Dec 30
Credit
10,000
Service Revenue
Received cash for services
Dec 18
Credit
12,450
Utility Expense
Accounts Payable
Received utility bill
2,650
Salary Expense
13,000
2,650
93
Cash
Paid salary of clerk
13,000
Test II.
Test III.
TRIAL BALANCE
Account Title
Debit
Credit
Cash
139,950
Accounts Receivable
12,950
Office Supplies
5,000
Accounts Payable
5,150
Mapangarap, Capital
150,000
Mapangarap, Drawing
3,000
Service Revenue
34,900
Rent Expense
10,000
94
Permits and Licenses Expense
3,500
Utility Expense
2,650
Salary Expense
13,000
TOTAL
190,050
190,050
Enrichment Activities
Test I.
Date
Aug 1
Particulars
Ref
Cash
Debit
160,000
Albularyo, Capital
Initial investment
Aug 2
Aug 5
Aug 7
Aug 7
Aug 15
Aug 15
160,000
Rent Expense
Cash
Paid rent for the month
10,000
Clinic Supplies
Cash
Bought clinic supplies
15,500
Medical Equipment
Cash
Notes Payable
Bought medical equipment
160,000
Furnitures and fixtures
Cash
Bought furnitures for clinic
45,000
Notes Payable
Cash
Paid N/P to Sta. Cruz Medical Supplies
40,000
Cash
20,500
10,000
15,500
60,000
100,000
45,000
40,000
Professional Fees
Recorded professional fees
Aug 26
Aug 28
Credit
20,500
Albularyo, Drawing
Cash
Withdrew cash for personal use
5,500
Utility Expense
Cash
Paid electricity and water
4,200
5,500
4,200
95
Aug 30
Aug 31
Salary Expense
Cash
Paid salary of secretary
10,000
Cash
35,000
10,000
Professional Fees
Recorded professional fees
35,000
Test II.
Test III.
TRIAL BALANCE
Explanation
Cash
Clinic Supplies
Medical Equipment
Furnitues and Fixtures
Notes Payable
Albularyo, Capital
Albularyo, Drawing
Professional Fees
Rent Expense
Utility Expense
Salaries Expense
TOTAL
Debit
25,300
15,500
160,000
45,000
Credit
60,000
160,000
5,500
55,500
10,000
4,200
10,000
275,500
96
275,500
Republic of the Philippines
DEPARTMENT OF EDUCATION
Region I
San Fernando City
La Union
ACTIVITY SHEETS IN FUNDAMENTALS OF
ACCOUNTANCY, BUSINESS, ANDMANAGEMENT 1
(FABM1), GRADE 11, 4th QUARTER, WEEK 1-2
MELC: Prepare adjusting entries and complete the accounting cycle.
• K to 12 BEC CG: ABM_FABM11-IVa-d-33
ABM_FABM11-IVa-d -34
Objectives:
The learners shall be able to:
1. Understand the rules on debit and credit as applied to adjusting entries.
2. Prepare adjusting entries.
3. Complete the accounting cycle.
Prepared by:
MAUREEN P. ABULENCIA
Teacher III
MA. RITA D. GARCIA
Master Teacher I
LEONIDES L. GAVINA
Master Teacher 1
and
Name: _____________________________________________________Date:____________
Grade/Section:_______________________________________________________Score:____________
Title of the Activity: Ruling on Debit and Credit
Most Essential Learning Competencies: Prepare adjusting entries and complete the
accounting cycle.
K to 12 BEC CG: ABM_FABM11-IVa-d-33 and ABM_FABM11-IVa-d-34
Directions: Answer Test I, II, and III by the specified directions.
I. Increase/Decrease
Analyze the statement given then choose if the effect on account will Increase or
Decrease it. Afterwards, write your answer before the number.
_______________1. Interest revenue that is entered in the credit side.
_______________2. Prepaid expense that is entered in the debit side.
_______________3. Interest payable that is entered in the debit side.
_______________4. Salaries expense that is entered in the credit side.
_______________5. Prepaid rent that is entered in the credit side.
_______________6. Unearned revenue that is entered in the debit side.
_______________7. Deferred revenue that is entered in the debit side.
_______________8. Interest expense that is entered in the credit side.
_______________9. Accrued liability that is entered in the debit side.
_______________10. Accumulated depreciation that is entered in the credit side.
97
II. Debit/Credit
Choose between the two choices (Debit or Credit). Then, write your answer before
the number.
_______________1. Prepaid Expense
_______________2. Prepaid Rent
_______________3. Deferred Revenue
_______________4. Accrued Liabilities
_______________5. Accumulated Depreciation
_______________6. Allowance for Doubtful Accounts
_______________7. Doubtful Accounts Expense
_______________8. Rent Income
_______________9. Unearned Revenue
_______________10. Supplies
III. Fill in the blanks
Put the correct adjusting entries from the space provided.
Account Debited
Account Credited
Prepaid
Expenses
Asset
Method
Expense
Method
Depreciation
1
2
3
5
4
6
7
8
9
10
Unearned
Revenues
Liablity
Method
Income
Method
98
Name: ______________________________________________________Date: __________
Grade/Section:______________________________________________________Score:__________
Title of the Activity: How to Make Closing Entries
Most Essential Learning Competencies: Prepare adjusting entries and complete the
accounting cycle.
K to 12 BEC CG: ABM_FABM11-IVa-d-33 and ABM_FABM11-IVa-d-34
Directions: Answer Test I, II, and III by the specified directions.
I. Temporary or Permanent
Direction: Identify if the account is temporary or permanent. Please write your
answer after the account title.
1. Unearned Income - ____________________
2. Sales -____________________
3. Prepaid Expense -____________________
4. Rent Expense -____________________
5. Service Revenue -____________________
6. Income Summary -____________________
7. Salaries Payable -____________________
8. Utilities Expense -____________________
9. Tax Payable -____________________
10. Cash -____________________
99
II. Matching Type
Direction: Your answer for each account title in Set B will be selected from Set A.
Write your answer from the space provided.
SET A. Choices
1. Balance sheet account
2. Income statement account
SET B. Account Titles
_______________1. Prepaid Insurance
_______________2. Vehicles
_______________3. Building
_______________4. Bonds Payable
_______________5. Sales
_______________6. Cost of Goods Sold
_______________7. Wages Payable
_______________8. Unearned Revenues
_______________9. Interest Expense
_______________10. Accumulated Depreciation
III. Fill in the blanks
Direction: Identify the account title from the space provided.
Close the income account
1
Close the expense account
? (Dr)
2 ? (Dr)
Income Summary
Close the income summary account
3
Income Summary
? (Cr)
Expense (Cr)
Close the withdrawal account
4 ?(Dr)
Withdrawals(Cr)
100
Name: ______________________________________________________Date: __________
Grade/Section:_________________________________________________________Score:__________
Title of the Activity: Make Me
Most Essential Learning Competencies: Prepare adjusting entries and complete the
accounting cycle.
K to 12 BEC CG: ABM_FABM11-IVa-d-33 and ABM_FABM11-IVa-d-34)
Directions: Answer Test I, II, and III by the specified directions.
I. Prepare a Trial Balance
Direction: Prepare a Trial Balance. There is a space provided after the data where
you can write your answer. The perfect score is 20 points with corresponding one
point deduction in every incorrect answer.
ABM Company
Trial Balance
20XX
Account Title
Cash
Accounts Receivable
Inventory
Property, Plant and Equipment
Accumulated Depreciation
Land
Accounts Payable
Notes Payable
Mortgage Payable
Capital
Withdrawals
Service Revenue
Rent Expense
Salaries Expense
Tax Expense
Utilities Expense
Totals
₱
Debit
100,000.00
Credit
₱
60,000.00
50,000.00
120,000.00
10,000.00
200,000.00
5,000.00
5,000.00
10,000.00
270,000.00
5,000.00
300,000.00
15,000.00
35,000.00
5,000.00
10,000.00
?
101
?
102
II. Prepare Income Statement, Statement of Changes in Equity, and Balance Sheet
Direction: Prepare Income Statement, Statement of Changes in Equity, and Balance
Sheet based on the Trial Balance you make in Test I. You can write your answer
from the space provided. Take note that the perfect score is 20 points per statement
with corresponding one point deduction in every incorrect answer.
103
104
III. Post-Closing Trial Balance
Direction: Prepare Post-Closing Trial Balance based on your answer from Test
II.You can write your answer from the space provided. Take note that the perfect
score is 20 points with corresponding one point deduction in every incorrect answer.
105
Name: ______________________________________________________Date: __________
Grade/Section:_______________________________________________________Score:_________
Title of the Activity: Theories and Problem Solving
Most Essential Learning Competencies: Prepare adjusting entries and complete the
accounting cycle
K to 12 BEC CG: ABM_FABM11-IVa-d-33 and ABM_FABM11-IVa-d-34
Directions: Answer Test I, II, and III by the specified directions.
I. Multiple Choice- Theories
Encircle the best answer. Any type of erasure will make you answer incorrect.
1. Deferred revenues occur when:
A. Goods or services are available
B. Cash already received but not yet earned
C. Expense has been incurred
D. You paid it already
2. Accruals occur when:
A. Goods or services are available
B. Cash already received but not yet earned
C. Expense has been incurred but not yet paid
D. You paid it already
3. When a lessor paid an advance payment to a lessee for two years rent and records this
using the expense method, what should be the credited account at year end (first
year)?
A. Debit cash
B. Debit an expense account
106
C. Debit a liability account
D. Credit an expense account
4. When a business makes an adjusting entry at year-end with a debit to supplies, the
usual credit entry is made to:
A. Accounts receivable
B. Cash
C. Supplies expense
D. Income summary
5. The adjusting entry required to record accrued liability includes:
A. A credit to liability
B. A debit to an asset
C. A credit to an cash
D. A debit to liability
6. When a newspaper sells subscriptions to customers, it is an example of:
A. Accrued liability
B. Accrued revenue
C. Prepaid expense
D. Unearned revenue
7. Making rent payment in advance is an example of:
A. Accrued liability
B. Accrued revenue
C. Prepaid expense
D. Unearned revenue
8. It is the exact opposite of a related adjusting entry made at the end of accounting
period?
A. Correcting Entry
B. Closing Entry
C. Initial Entry
D. Reversing Entry
107
9. Aside from accruals, which of the following can be reversed?
A. Deferrals initially recorded in the income statement (income or expense)
B. All deferrals
C. Accounts that have been closed
D. All temporary accounts
10. Reversing entry should be made for any adjusting entry that?
A. Increased an asset account only
B. All temporary accounts
C. Increased a liability account only
D. Increased an asset or a liability account
II. Multiple Choice- Problem-Solving
Direction: Encircle the best answer. Any type of erasure will make your answer
incorrect.
1. ABM company purchased 800,000 in supplies this year. Supplies account increased
by ₱200,000 during the year. ₱160,000 remained at year-end. What was supplies
expense for ABM company during the year?
A. ₱300,000
B. ₱760,000
C. ₱200,000
D. ₱840,000
2. On December 31, 20XX, the recorded ending accounts receivable of ABM company
was ₱150,000 with an estimated of ₱36,000 receivables which will not be collected.
Accounts receivable in the 2019 Statement of Financial Position will be valued at:
A. ₱114,000
B. ₱186,000
C. ₱150,000
D. ₱36,000
108
3. ABM company reported supplies of ₱500,000 this year. In which ₱336,000 of
supplies was used. At year-end the remaining supplies is ₱400,000. What was the cost
of supplies purchased during the year?
A. ₱236,000
B. ₱164,000
C. ₱400,000
D. ₱0
4. ABM company purchased a two-year fire insurance coverage policy on June 1,
20XX with a cost of ₱200,000. At its December 31, 20XX, how much should be
recorded as an expense?
A. ₱100,000
B. ₱50,000
C. ₱200,000
D. ₱0
5. On March 1, 20XX, ABM company sold 300 one-year subscriptions for ₱15 each.
The total amount received was credited to subscriptions revenue. How much should be
recorded as liability?
A. ₱750
B. ₱4,500
C. ₱3,750
D. ₱0
Test III. Exercises
Direction: Prepare adjusting entries for each of the following transaction for the
year ended December 31, 20XX. Write you answer in the space provided.
1. On January 1, 20XX, the supplies account had a balance of ₱48,000. During the year,
ABM Company purchased ₱158,000 of supplies. At end of the year, supplies inventory
showed an amount of ₱50,000.
109
2. Computer equipment costing ₱35,000 has a useful life of three years with a salvage
value of ₱1,000 at the end of its life. Record the depreciation for one year.
3. ABM company borrowed an amount of ₱100,000 to a lending institution on
February 20XX. This amount bears an interest of 8% per annum. Record the interest
expense for this transaction.
4. The company preferred to pay its rent for two years in the amount of ₱200,000. This
transaction was happened last April 1, 20XX. Record the adjusting entry of rent
expense.
5. Due to COVID 2019, ABM company did not yet pay the December 16-31, 20XX
salaries of its employees amounting to ₱50,000 because no one wants to go and work in
office. How do you record this obligation?
110
Answer Key
Simple Activities
Test I.
1. Increase
2. Increase
3. Decrease
4. Decrease
5. Decrease
6. Decrease
7. Decrease
8. Decrease
9. Decrease
10. Increase
1. Debit
2. Debit
3. Credit
4. Credit
5. Credit
6. Credit
7. Debit
8. Credit
9. Credit
10. Debit
Test II.
Test III.
Account Debited
Account Credited
Asset Method
Expense
Prepaid
Expense Method
Prepaid
Expense
Expense
Contra Account Asset
Liablity Method
Unearned
Revenues
Income Method
Revenues
Unearned
Deferrals:
Prepaid Expenses
Depreciation
Unearned Revenues
Answer Key
Moderate Activities
Test I.
1. Permanent
2.Temporary
3. Permanent
4. Temporary
5. Temporary
6.Temporary
7. Permanent
8. Temporary
9.Permanent
111
10. Permanent
Test II.
1. Balance Sheet Account
2. Balance Sheet Account
3. Balance Sheet Account
4. Balance Sheet Account
5. Income Statement Account
6. Income Statement Account
7. Balance Sheet Account
8. Balance Sheet Account
9. Income Statement Account
10. Balance Sheet Account
Test III.
Close the income account
Close the expense account
1 Income
2 Income Summary
Expense
Income Summary
Close the income summary account
Close the withdrawal account
Income Summary
3
Capital
4 Capital
Withdrawals
Answer Key
Difficult Activities
Test I.
ABM Company
Trial Balance
20XX
Account Title
Cash
Accounts Receivable
Inventory
Property, Plant and Equipment
Accumulated Depreciation
Land
Accounts Payable
Notes Payable
Mortgage Payable
Capital
Withdrawals
Debit
₱ 100,000.00
60,000.00
50,000.00
120,000.00
Credit
₱
10,000.00
200,000.00
5,000.00
5,000.00
10,000.00
270,000.00
5,000.00
112
Service Revenue
300,000.00
Rent Expense
Salaries Expense
Tax Expense
Utilities Expense
Totals
15,000.00
35,000.00
5,000.00
10,000.00
₱ 600,000.00 ₱ 600,000.00
Test II.
ABM Company
Income Statement
20XX
Less:
Service Revenue
Rent Expense
Salaries Expense
Tax Expense
Utilities Expense
Net Income
₱
₱
300,000.00
15,000.00
35,000.00
5,000.00
10,000.00
65,000.00
₱235,000.00
ABM Company
Statement of Changes in Equity
20XX
Less:
Capital,
Beginning
Net Income
Withdrawals
Capital, Ending
₱
270,000
135,000
5,000
500,000
₱
ABM Company
Balance Sheet
20XX
₱
Cash
Accounts Receivable
Inventory
Property, Plant and Equipment
Less: Accumulated Depreciation
Land
₱
113
120,000.00
10,000.00
100,000.00
60,000.00
50,000.00
110,000.00
200,000.00
₱
Total Assets
₱
Accounts Payable
Notes Payable
Mortgage Payable
Total Liabilities
Capital
Total Liabilities and Owner's Equity
5,000.00
5,000.00
10,000.00
20,000.00 ₱
₱
520,000.00
20,000.00
500,000.00
520,000.00
Test III.
ABM Company
Post-Closing Trial Balance
20XX
Account Title
Cash
Accounts Receivable
Inventory
Property, Plant and Equipment
Accumulated Depreciation
Land
Accounts Payable
Notes Payable
Mortgage Payable
Capital
Totals
Debit
₱ 100,000.00
60,000.00
50,000.00
120,000.00
Credit
₱
5,000.00
5,000.00
10,000.00
500,000.00
₱ 530,000.00 ₱ 530,000.00
Answer Key
EnrichmentActivities
Test I.
1. B
2. C
3. D
4. C
5. A
6. D
7. C
8.D
9. A
10.D
2. A
3. A
4. B
5. A
Test II.
1. D
10,000.00
200,000.00
114
Test III.
1. Supplies Expense
₱156,000
₱156,000
Supplies
2. Depreciation Expense
₱11,333
₱11,333
Accumulated Depreciation
3. Interest Expense
₱7,333
₱7,333
Interest Payable
4. Rent Expense
₱75,000
₱75,000
Prepaid Rent
5. Salaries Expense
₱50,000
₱50,000
Salaries Payable
115
Republic of the Philippines
DEPARTMENT OF EDUCATION
Region I
San Fernando City
La Union
ACTIVITY SHEETS IN FUNDAMENTALS OF
ACCOUNTANCY, BUSINESS AND MANAGEMENT 1
(FABM 1), GRADE 11, 4th QUARTER, WEEK 3-9
MELC: The learner describes the nature of transactions in a
merchandising business; records transactions of a merchandising business in
the general and special journals; posts transactions in the general ledger and
subsidiary ledgers; prepares trial balance; prepares adjusting entries; and
completes the accounting cycle of a merchandising business.
K to 12 BEC CG: ABM_FABM11-IVe-j-35-40
Objectives:
The learner shall be able to:
1.
2.
3.
4.
5.
6.
7.
Describe the nature of transactions in a merchandising business.
Record transactions of a merchandising business in the general and special journals.
Posts transactions in the general ledger and subsidiary ledgers.
Prepares trial balance.
Prepares adjusting entries.
Completes the accounting cycle of a merchandising business.
Prepares the Statement of Cost of Goods Sold and Gross Profit.
Prepared by:
MAUREEN P. ABULENCIA
Teacher III
MA. RITA D. GARCIA
Master Teacher I
LEONIDES L. GAVINA
Master Teacher 1
Name: __________________________________________________ Date: _____________
Grade/Section:____________________________________________ Score:_____________
Title of the Activity: Buy and Sell
Most Essential Learning Competency: The learner describes the nature of
transactions in a merchandising business; records transactions of a merchandising
business; records transactions of a merchandising business in the general and special
journals; and posts transactions in the general and subsidiary ledgers.
K to 12 BEC CG: ABM_FABM11-IVe-j-35, 36, 37
I.
Nature of transactions in a merchandising business.
Directions: Identify the statements given. Write your answer in the blank
provided.
__________1. This type of business buys merchandise/goods and sell the same at
a profit.
__________2. Operating revenue account used by merchandising business.
__________3. This account is used under periodic system for merchandise/goods
bought for resale.
__________4. Contra-account used by seller that is granted to the buyer for
paying early.
__________5. Account used by the seller to record transportation of
merchandise/goods sold under the shipping term F.O.B
destination
__________6. Contra-account used by the buyer for wrong specification or
defective merchandise/goods returned to the seller.
__________7. Account used by the buyer to record transportation of goods
bought under the shipping term F.O.B shipping point.
__________8. Contra-account used by the seller for wrong specification or
defective merchandise returned by the buyer.
__________9. Contra-account used by the buyer when the seller grants them for
paying early.
116
__________10. The account used for merchandise/goods that remained unsold.
II. Directions: Determine whether General Journal, Sales Journal, Purchases Journal,
Cash Receipts Journal, Cash Payment Journal will be used in recording the transactions.
Write your answer in the blank/space provided.
Consider the following transactions in your business:
1. You invested ₱100,000 cash and equipment which cost ₱25,000 in the
business.
_____________________________________________________________
2. Purchased furniture on cash for ₱5,000.
_____________________________________________________________
3. Purchased supplies on cash for ₱2,500.
_____________________________________________________________
4. Purchased merchandise from ABC Merchandising for ₱20,000. Terms:2/10,
n/30.
_____________________________________________________________
5. Purchased merchandise on cash for ₱12,000.
_____________________________________________________________
6. Paid the freight on merchandise bought above for ₱500.
_____________________________________________________________
7. Sold merchandise to various cash customers for ₱10,000.
_____________________________________________________________
8. Sold merchandise to Mr. Perez for ₱8,000. Terms:2/10, n/30.
_____________________________________________________________
9. Paid the freight on merchandise sold above for ₱200.
_____________________________________________________________
10. Paid the wages employees for ₱4,000.
_____________________________________________________________
11. Paid the account due to creditor.
_____________________________________________________________
117
12. Sold supplies to a neighborhood office for ₱250.
_____________________________________________________________
13. Collected the account due from customers.
_____________________________________________________________
14. Received defective merchandise from customers for ₱1,000.
_____________________________________________________________
15. Received Utility bills for ₱3,500.
_____________________________________________________________
III. Directions: Journalize the transactions in the General Journal, and Special Journals:
Sales Journal, Purchases Journal, Cash Receipts Journal, Cash Payment Journal; and posts
in the General Ledger and Subsidiary Ledgers. Write your answers in a separate needed
answer sheet.
You decided to open a Mini Grocery in your barangay. The following are the
transactions in December of the current year:
1 You invested ₱100,000 cash and equipment for ₱25,000 in the business.
4 Purchased furniture on cash for ₱5,000.
6 Purchased supplies on cash for ₱2,500.
8 Purchased merchandise from ABC Merchandising for ₱20,000. Terms: 2/10, n/30.
10 Purchased merchandise from XYZ Merchandising for ₱12,000 on cash.
12 Paid the freight on merchandise bought above for ₱500.
15 Sold merchandise to various cash customers for ₱10,000.
16 Sold merchandise to Mr. Perez for ₱8,000. Terms: 2/10, n/30.
17 Paid the freight on merchandise sold above for ₱200.
18 Paid the wages employees for ₱4,000.
18 Paid within the discount period the account due to ABC Merchandising.
20 Sold merchandise to Mr. Abad for ₱12,000. Terms: 2/10, n/30.
118
26 Collected within the discount period the account due from Mr. Perez.
28 Received defective merchandise from Mr. Abad for ₱1,000.
29 Returned defective merchandise worth ₱2,000 to XYZ Merchandising
IV. Step #2. Journal entries using (a) Periodic system and (b) Perpetual system.
The following selected transactions took place in the second month of the
current year of operating your ABM Mini Grocery:
Feb 1
Purchased goods for ₱10,000 on cash.
2
Purchased equipment on credit, ₱6,000.
3
Sold goods to various cash customers, ₱5,000.
4
Sold goods to various customers for ₱10,000. Terms:2/10, n/30.
5
Paid the freight on goods sold above, ₱400.
6
Purchased goods for ₱15,000. Terms:2/10,1/15,n/30.
7
Paid the freight on merchandise purchased for ₱500.
8
Received defective goods from cash customers for ₱800.
9
Collected the accounts due from customers.
10 Returned ₱1,200 defective goods purchased on February 1.
119
Name: ____________________________________________________ Date:__________
Grade/Section:_______________________________________________ Score:__________
Title of the Activity: Time to prepare on your own Step 4-6 of the accounting cycle of
a merchandising business.
Most Essential Learning Competency: The learners prepare trial balance, prepare
adjusting entries and completing the accounting cycle for merchandising business.
K to 12 BEC CG: ABM_FABM11-IVe-j-38, 39, 40
I.
Step #4 - Preparation of Trial Balance.
Directions: Prepare a Trial Balance. Write your answer in the 2-column journal.
The following accounts with their corresponding Total Debit and Total Credit were
taken from the General Ledger of ABM Mini Grocery on December 31, 20XX:
ACCOUNT
DEBIT
CREDIT
Cash
₱119,840
₱43,800
Accounts Receivable
₱20,000
₱9,000
Supplies
₱2,500
Equipment
₱25,000
Furniture
₱5,000
Accounts Payable
₱20,000
₱20,000
AB Mahusay, Capital
₱125,000
Sales
₱30,000
₱160
Sales Discount
Sales Returns and Allowances
₱1,000
Purchases
₱32,000
₱400
Purchase Discount
₱2,000
Purchase Returns and Allowances
₱500
Freight in
120
II.
Wages Expense
₱4,000
Freight out
₱2,000
TOTAL
₱230,200
₱230,200
Step #5 - Preparation of adjusting entries and post to the general ledger.
Directions: Prepare Adjusting Entries. Record in the 2-column journal.
This activity is the continuation of the Trial Balance in Activity #1. Additional data
for adjustment:
1. Unused supplies, ₱1,500.
2. Unpaid utilities, ₱2,000.
3. Provide for 10% Annual depreciation for Equipment and 10% Annual
depreciation for Furniture.
4. Estimated uncollectible accounts is 2% of Outstanding Accounts Receivable.
5. Physical count shows merchandise inventory on hand amounts to ₱16,000.
III.
Step #6 - Preparation of Adjusted Trial Balance.
Directions: Prepare Adjusted Trial Balance. Write your answer in the 2-column
journal.
This activity is the continuation of Activity #I and #II. ( Note to the teacher to
please provide to the learners data for Unadjusted Trial Balance and Adjustments
before answering this activity)
Unadjusted Trial
Adjustments
Balance
ACCOUNTS
DR
CR
Cash
Accounts Receivable
Allowance for Bad Debts
Merchandise Inventory
Supplies
121
Adjusted Trial
Balance
DR
CR
DR
CR
Equipment
Accumulated Depreciation –
Equipment
Furniture
Accum. Dep. – Furniture
Accrued Utilities Expense
AB Mahusay, Capital
Sales
Sales Discount
Sales Returns and
Allowances
Purchases
Purchase Discount
Purchase Returns and
Allowances
Freight in
Wages Expense
Freight out
Supplies Expense
Utilities Expense
Depreciation Expense
Bad Debts
Income Summary
TOTAL
122
Name: ______________________________________________________Date: __________
Grade/Section:_______________________________________________ Score:__________
Title of the Activity: You Complete Me
Most Essential Learning Competency: Completes the accounting cycle of a
merchandising business.
K to 12 BEC CG: ABM_FABM11-IVe-j- 40
I.
Step #7 - Preparation of Financial Statements.
Directions: Based on the Adjusted Trial Balance in the Moderate Level of Activity#3.
Prepare Financial Statement: Income Statement, Statement of Owner’s Equity, and
Balance Sheet. Write your answer in a separate sheet.
Adjusted Trial Balance
ACCOUNTS
DR
Cash
Accounts Receivable
Allowance for Bad Debts
Merchandise Inventory
Supplies
Equipment
Accumulated Depreciation – Equipment
Furniture
Accum. Dep. – Furniture
Accrued Utilities Expense
AB Mahusay, Capital
123
CR
Sales
Sales Discount
Sales Returns and Allowances
Purchases
Purchase Discount
Purchase Returns and Allowances
Freight in
Wages Expense
Freight out
Supplies Expense
Utilities Expense
Depreciation Expense
Bad Debts
Income Summary
TOTAL
II.
Step #8. Prepare Closing entries and post to the general ledger.
Directions: Based on Activity #1 above, prepare Closing Entries and post to the
general ledger. Write your answer in a 2-column journal and continue posting in
the general ledger.
124
III.
Step #9 - Prepare a Post-Closing Trial Balance; and Step #10 -Prepare
reversing entries and post to general ledger.
Directions: Based on Activity #I and Activity #II above, prepare Post-Closing
Trial Balance and prepare reversing entries and continue posting to the general
ledger. Use 2-column journal.
125
Name: ____________________________________________________ Date: ___________
Grade/Section:________________________________________________ Score:_________
Title of the Activity: Complete the Cycle
Most Essential Learning Competency: The learner records transactions of a
merchandising business in the general and special journals; posts transactions in the
general and subsidiary ledgers prepares trial balance; prepares adjusting entries; and
completes the accounting cycle of a merchandising business.
K to 12 BEC CG: ABM_FABM11-IVe-j-36, 37, 38, 39, 40
I.
Journalization in the General/Special Journals and Posting in the General/
Subsidiary Ledgers.
Directions: Journalize the transactions in the general journal and special journal
and posts to the general ledger and subsidiary ledgers. Write your answers in the
Journals and Ledgers provided.
The account balances of ABM Mini-Mart which you own, as of December 5
before recording December 6-25 of the current year are as follows: Cash P25,000;
Accounts Receivable (Santos Sari-Sari Store) P10,000; Supplies, P1,000;
Equipment, P12,000; Furniture and Fixtures P4,000; Accounts Payable (Magic
Grocery), P7,000; ____, Capital, P50,000, ____, Drawing P5,000 .You completed
the following transactions:
Dec 6 Purchased goods from Magic Grocery, ₱5,000. Terms:2/10, n/30.
Sold goods to Perez Sari-Sari Store, ₱4,000. Terms: 2/15, n/30.
7 Purchased goods from Puregold Grocery, ₱7,000. Terms:2/15, n/30.
Sold goods to Cruz Sari- Sari Store, ₱8,000.
8 Collected in full the account due from Perez Sari-Sari Store.
10 Paid in full the account due to Magic Grocery from the December 5
balance.
15 Returned ₱1,000 worth of defective goods to Puregold.
126
20 Paid the freight on goods bought, ₱100.
25 Paid wages of employees, ₱750.
127
II.
Prepare Trial Balance, adjusting entries and post to general ledger, and
Adjusted Trial Balance.
Directions: Based on the General Ledger in Activity I above, prepare Trial
Balance, adjusting entries, and Adjusted Trial Balance. Write your answers in a
2-column journal.
Additional data for adjustments:
1. Utilities not yet paid, ₱700.
2. Supplies used up, ₱300.
3. Doubtful of collection, ₱200.
4. Depreciation to be provided for Equipment - ₱200 while Furniture - ₱80.
5. Inventory on hand, ₱6,000.
128
III. Prepare Financial Statements; closing entries and post to the general ledger;
Post-Closing Trial Balance; and Reversing Entry.
Directions: Based on the Adjusted Trial Balance in Activity #II, prepare Financial
Statements: Income Statement, Statement of Owner’s Equity, and Balance Sheet; closing
entries, Post-Closing Trial Balance and Reversing Entry. Write your answers in a separate
sheets for the preparation of financial statements preparation and Post Closing Trial
Balance and use 2-column journals for the entries.
129
Answer Key:
Simple Activities
Test I.
1.
Merchandising Business
6. Purchase Returns
2.
Sales
7. Freight in
3.
Purchases
8. Sales Returns
4.
Sales discount
9. Purchase Discount
5.
Freight out
10. Merchandise Inventory
Test II.
1. Cash Receipts Journal and General Journal
11. Cash Payment Journal
2. Cash Payment Journal
12. Cash Receipts Journal
3. Cash Payment Journal
13. Cash Receipts Journal
4. Purchases Journal
14. General Journal
5. Cash Payment Journal
15. General Journal
6. Cash Payment Journal
7. Cash Receipts Journal
8. Sales Journal
9. Cash Payment Journal
10. Cash Payment Journal
Test III.
Date
December 16
December 20
Invoice
SALES JOURNAL
Account Debited
Post Ref.
Mr. Perez
Mr. Abad
Accounts Rec.Dr./Sales Cr.
8,000
12,000
20,000
PURCHASES JOURNAL
Date
December 8
R.R.No.
Account Credited
ABC Merchandising
130
PR
Credit
Accounts Payable
20,000
20,000
Debit
Purchases
20,000
20,000
Date
Dec 4
Dec 6
Dec 10
Dec 12
Dec 17
Dec 18
Dec 18
Ck.
No.
Description
Purchased
Furniture and
Fixtures
Purchased Supplies
Cash Receipts Journal
Credit
Cash Purch
A/P
Disc.
5,000
Purchases
2,500
Purchased
merchandise
Paid
Transportation In
Paid
Transportation Out
Payment for
Salaries and Wages
12,000
Payment for on
account
19,600
400
20,000
43,800
400
20,000
Debit
Account
Title
Furniture
and
Fixtures
Supplies
PR
Amount
5,000
2,500
12,000
500
Freight In
500
200
Freight Out
200
4,000
Salaries
and Wages
4,000
131
12,000
16,700
GENERAL LEDGER
Cash
119,840.00
Sales Discount
43,800.00
160.00
76,040.00
Accounts Receivable
20,000.00
20,000.00
Sales
8,000.00
20,000.00
1,000.00
10,000.00
9,000.00
30,000.00
11,000.00
Purchases Returns and Allowances
Capital
2,000.00
125,000.00
2,000.00
125,000.00
132
Sales Returns and Allowances
Equipment
1,000.00
25,000.00
1,000.00
25,000.00
GENERAL LEDGER
Accounts Payable
20,000.00
20,000.00
0.00
Purchases
20,000
12,000
32,000
Purchases Discount
400.00
Salaries and Wages
4,000
Supplies
2,500
Furniture and
Fixtures
5,000
Freight Out
200
Freight In
500
Accounts Receivable
Subsidiary Ledger
12/16
Mr. Perez
8,000.00 8,000.00
12/20
Mr. Abad
12,000.00 1,000.00
Accounts Payable
Subsidiary Ledger
ABC Merchandising
20,000.00
20,000.00 12/08
133
Moderate Activities
Test I. Step #4.
AB Mahusay Mini Grocery
Trial Balance
December 31, 20XX
ACCOUNT
DEBIT
CREDIT
Cash
₱76,040
Accounts Receivable
₱11,000
Supplies
₱2,500
Equipment
₱25,000
Furniture
₱5,000
₱0
Accounts Payable
AB Mahusay, Capital
₱125,000
Sales
₱30,000
₱160
Sales Discount
Sales Returns and Allowances
₱1,000
Purchases
₱32,000
₱400
Purchase Discount
₱2,000
Purchase Returns and Allowances
₱500
Freight in
₱4,000
Wages Expense
₱200
Freight out
₱157,400
TOTAL
₱157,400
Test II. Step #5. Prepare Adjusting entries and post to the general ledger.
₱1,000
Dec. 31 Supplies expense
₱1,000
Supplies
Utilities expense
2,000
Accrued Utilities Expense
134
2,000
Depreciation Expense
250
Accumulated Depreciation-Equipment
208
Accumulated Depreciation-Furniture
42
Bad Debts Expense
220
Allowance for Bad Debts
220
Merchandise Inventory
16,000
Income Summary
16,000
Test III. Step #6.
ABM Mini Grocery
Adjusted Trial Balance
December 31, 20XX
ACCOUNTS
DR
Cash
₱76,040
Accounts Receivable
₱11,000
CR
₱220
Allowance for Bad Debts
Merchandise Inventory
₱16,000
Supplies
₱1,500
Equipment
₱25,000
Accumulated Depreciation – Equipment
₱208
₱5,000
Furniture
Accum. Dep. – Furniture
₱42
Accrued Utilities Expense
₱2,000
AB Mahusay, Capital
₱125,000
Sales
₱30,000
135
₱160
Sales Discount
Sales Returns and Allowances
₱1,000
Purchases
₱32,000
₱400
Purchase Discount
₱2,000
Purchase Returns and Allowances
₱500
Freight in
₱4,000
Wages Expense
₱200
Freight out
Supplies Expense
₱1,000
Utilities Expense
₱2,000
Depreciation Expense
₱250
Bad Debts
₱220
₱16,000
Income Summary
₱175,870
TOTAL
136
₱175,870
Challenging Activities
Test I. Step #7.
ABM Mini Grocery
Income Statement
For the Month Ended December 31, 20XX
₱30,000
Sales
₱ 160
Less: Sales discount
Sales Returns and Allowances
1,000
1,160
₱28,840
Net Sales
Less: Cost of Sales:
₱32,000
Purchases
Less: Purchase discount
Purchase Returns and allowances
₱ 400
2,000
2,400
Net purchases
₱29,600
Add: Freight in
500
Total Goods available for sale
₱30,100
Less: Merchandise Inventory, End
16,000 14,100
₱14,740
Gross Profit
Less: Operating Expenses:
₱ 4,000
Wages expense
Freight out
200
Supplies expense
1,000
Utilities expense
2,000
Depreciation expense
250
Bad debts expense
220
7,670
₱ 7,070
Net Income
137
ABM Mini Grocery
Statement of Owner’s Equity
For the Month Ended December 31, 20XX
₱125,000
AB Mahusay, Capital, December 1
Add: Net Income
7,070
₱132,070
AB Mahusay, Capital, December 31
ABM Mini Grocery
Statement of Financial Condition
As of December 31, 20XX
LIABILITIES AND OWNER’S
EQUITY
ASSETS
₱76,040 Accrued Utilities
Expense
Cash
₱11,000
Accounts Receivable
Allowance for Bad Debts
₱220
AB Mabuhay, Capital
₱16,000
Supplies
₱1,500
₱25,000
Equipment
Accum. Dep. – Eqpt.
₱208
₱24,792
₱5,000
Furniture
Accum. Dep. – Furn.
₱42
₱4,958
₱134,070 Total Liab. & OE
Dec. 31
₱132,070
₱10,780
Merchandise Inventory
I. Step #8.
₱2,000
₱134,070
Prepare Closing Entries and post to the general ledger.
₱30,000
Sales
Purchase discount
400
Purchase Returns and Allowances
2,000
₱32,400
Income Summary
138
Income Summary
41,330
Sales discount
160
Sales Returns and Allowances
1,000
Purchases
32,000
Freight in
500
Wages expense
4,000
Freight out
200
Supplies expense
1,000
Utilities expense
2,000
Depreciation expense
250
Bad debts expense
220
Income Summary
7,070
AB Mahusay, Capital
7,070
II. Step #9. Post-Closing Trial Balance
ABM Mini Grocery
Post-Closing Trial Balance
December 31, 20XX
ACCOUNTS
DR
Cash
₱76,040
Accounts Receivable
₱11,000
CR
₱220
Allowance for Bad Debts
Merchandise Inventory
₱16,000
Supplies
₱1,500
Equipment
₱25,000
Accumulated Depreciation – Equipment
₱208
139
₱5,000
Furniture
Accum. Dep. – Furniture
₱42
Accrued Utilities Expense
₱2,000
₱132,070
AB Mahusay, Capital
₱134,540
TOTAL
₱134,540
Step #10. Prepare Reversing Entry and post to the general ledger.
202_
January 1
₱
Accrued Utilities expense
2,000
₱ 2,000
Utilities expense
Enrichment Activities
Test I.
SALES JOURNAL
Date
December 06
Invoice
Account Debited
Mr. Perez
Post Ref.
Accounts Rec.Dr./Sales
Cr.
4,000
4,000
PURCHASES JOURNAL
Date
December 6
December 7
R.R.No.
Account Credited
Magic Grocery
Puregold Grocery
PR
140
Credit
Accounts Payable
5,000
7,000
12,000
Debit
Purchases
5,000
7,000
12,000
GENERAL JOURNAL
Date
Account Titles
December 15 Accounts Payable
Purchases Returns and Allowances
Debit Credit
1000
1000
Cash Receipts Journal
Debit
Date
O.R.
No.
Credit
Description
Cash
Sales
Disc.
A/R
Dec 1
Beg. Balance
25,000
Dec 7
Cash Sales
8,000
Dec 8
Collection of
A/R
3,920
80 4,000
36,920
80 4,000
Sales
Account
Title
PR
Amount
8,000
8,000
Cash Disbursements Journal
Credit
Date
Dec
10
Dec
20
Dec
25
Ck.
No.
Description
Cash
Payment of
Account
Payment for
Transportation
In
Payment for
Salaries and
Wages
7,000
Purch
Disc.
Debit
A/P
Purchases
Account
Title
PR Amount
100
Freight In
100
750
Salaries
and Wages
750
7,000
7,850
7,000
141
850
Accounts
Receivable
Subsidiary
Ledger
Santos
Sari-Sari Store
10,000.00
10,000.00
Perez Sari-Sari
Store
4,000.00
12/5
12/06
Accounts
Payable
Subsidiary
Ledger
Magic Grocery
7,000.00
7,000.00 12/05
5,000.00
7,000.00 12,000.00
5,000.00
4,000.00
4,000.00
Puregold Grocery
1,000.00
1,000.00
7,000.00
7,000.00
6,000.00
Test II.
ABM Mini-Mart
Trial Balance
December 31, 20XX
Debit
Credit
₱ 29,070
Cash
Accounts Receivable
10,000
Supplies
1,000
Equipment
12,000
Furniture
4,000
Accounts Payable
₱ 11,000
______, Capital
50,000
______, Drawing
5,000
Sales
12,000
Sales discount
80
Purchases
12,000
142
Purchase returns and allowances
1,000
Freight in
100
Wages expense
750
₱ 74,000
Total
₱ 74,000
Adjusting entries:
₱700
Dec 31 Utilities expense
₱700
Utilities payable
Supplies expense
300
Supplies
300
Bad debt expense
200
Allowance for Bad debts
Depreciation expense
200
280
Accumulated depreciation-Equipment
200
Accumulated depreciation- Furniture
80
Merchandise Inventory
6,000
Income Summary
6,000
143
ABM Mini-Mart
Adjusted Trial Balance
December 31, 20XX
Debit
Credit
₱ 29,070
Cash
Accounts Receivable
10,000
₱
Allowance for Bad Debts
Merchandise Inventory
6,000
Supplies
1,000
Equipment
12,000
Accumulated depreciation- Equipment
Furniture
200
200
4,000
Accumulated depreciation- Furniture
80
Accounts Payable
P 11,000
Utilities payable
700
______, Capital
50,000
______, Drawing
5,000
Sales
12,000
Sales discount
80
Purchases
12,000
Purchase returns and allowances
1,000
Freight in
100
Wages expense
750
Utilities expense
700
Supplies expense
300
Bad debts expense
200
Depreciation expense
280
144
Income Summary
6,000
₱ 81,180
Total
₱ 81,180
Test III.
ABM Mini-Mart
Income Statement
For the month ended December 31, 20XX
₱12,000
Sales
Sales discount
80
₱11,920
Net Sales
Less: Cost of Sales:
₱12,000
Purchases
Less: Purchase returns and allowances
1,000
Net Purchases
₱11,000
Add: Freight in
100
Total goods available for sale
₱11,100
Less: Merchandise Inventory
6,000
5,100
₱ 6,820
Gross Profit
Less: Operating Expenses:
Wages expense
₱ 750
Utilities expense
700
Supplies expense
300
Bad debts expense
200
Depreciation expense
280
2,230
₱ 4,590
Net Income
145
ABM Mini-Mart
Statement of Owner’s Equity
For the month ended December 31, 20XX
₱50,000
______, Capital, December 1, 20XX
Add: Net income
4,590
₱54,590
Total
Less: ______, Drawing
5,000
₱49,590
______, Capital, December 31, 20XX
ABM Mini-Mart
Balance Sheet
As of December 31, 20XX
LIABILITIES AND OWNER’S
EQUITY
ASSETS
Cash
Accounts Receivable
Allowance for Bad Debts
₱29,070 Accounts Payable
₱11,000
Utilities Payable
₱700
₱10,000
₱200
₱9,800 __________, Capital
₱6,000
Merchandise Inventory
₱700
Supplies
Equipment
Accum. Dep. – Eqpt.
Furniture
Accum. Dep. – Furn.
₱49,490
₱12,000
₱200
₱11,800
₱4,000
₱80
₱3,920
₱61,290 Total Liab. & OE
146
₱61,290
Closing entries:
Dec 31
₱12,000
Sales
Purchase returns and allowances
1,000
₱13,000
Income Summary
Income Summary
14,410
Sales discount
Purchases
80
12,000
Freight in
100
Wages expense
750
Utilities expense
700
Supplies expense
300
Bad debts expense
200
Depreciation expense
280
Income Summary
4,590
______, Capital
4,590
_______, Capital
5,000
________, Drawing
147
5,000
ABM Mini-Mart
Post-Closing Trial Balance
December 31, 20XX
Debit
Credit
₱ 29,070
Cash
Accounts Receivable
10,000
₱
Allowance for Bad Debts
Merchandise Inventory
6,000
Supplies
700
Equipment
12,000
Accumulated depreciation- Equipment
Furniture
200
200
4,000
Accumulated depreciation- Furniture
80
Accounts Payable
11,000
Utilities payable
700
______, Capital
49,590
₱61,770
Total
₱61,770
Reversing entry:
January 1
₱700
Utilities Payable
₱700
Utilities Expense
148
References:
1.
Books
Florendo, Joselito G. 2016. Fundamentals of Accountancy, Business and Management 1.
Sampaloc, Manila: Rex Book Store, Inc.
Reyes, Carlito V. 2005. Basic Accounting Principles and Applications. Tondo, Manila: R
& S Publishing.
Tugas, Florenz C., et al. 2016. Fundamentals of Accountancy, Business and Management
1. Araneta Avenue, Quezon City: Vibal Group, Inc.
2. Online and Other Sources
accountingtools.com.
https://www.accountingtools.com/articles/2017/5/14/notes-receivable-accounting
debitoor.com. https://debitoor.com/dictionary/materiality-principle
investopedia.com. https://www.investopedia.com/terms/a/accountsreceivable.asp
smallbusiness.findlaw.com. https://smallbusiness.findlaw.com
teacherspayteachers.com.
https://www.teacherspayteachers.com/Product/Venn-Diagram-Rubric-1273481
teachtogether.chedk12.com. http://teachtogether.chedk12.com/teaching_guides/view/487
wordunscrambler.net. https://wordunscrambler.net/word-scrambler.aspx
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