Professional Documents
Culture Documents
Accounting Equation SHS Lesson Plan Ethel 1
Accounting Equation SHS Lesson Plan Ethel 1
Kagawaran ng Edukasyon
Rehiyon IV-A CALABARZON
SANGAY NG BATANGAS
Grade: 11 Activity 2
Course Title: Fundamentals of Accountancy, Business
and Management 1 You have now some ideas about the three major
accounts of a financial make up. Assets, Liabilities and
Content: The Accounting Equation Owner’s Equity. Let me first define these three
Content Standards: The Accounting Equation accounts.
Performance Standards: Solve problems applying the Assets are a company's resources—things the company
accounting Equation owns. Examples of assets include cash, accounts
receivable, inventory, prepaid insurance, investments,
Time Section Date land, buildings and equipment.
Liabilities are a company's obligations—amounts the
company owes. Examples of liabilities include notes or
loans payable, accounts payable, salaries and wages
Learning Competencies: payable, interest payable, and income taxes payable (if
the company is a regular corporation). Liabilities can be
viewed in two ways:
ABM_FABM11- IIIb-c-17
(1) as claims by creditors against the company's assets,
Illustrate the accounting equation.
and
(2) a source—along with owner or stockholder equity—of
ABM_FABM11- IIIb-c-18
the company's assets.
Perform operations involving simple cases with the use
Owner's or stockholders' equity also reports the
of accounting equation.
amounts invested into the company by the owners plus
Subject Matter: The Accounting Equation the cumulative net income of the company that has not
References: K to 12 Basic Education Curriculum – SHS been withdrawn or distributed to the owners.
Owner's equity or stockholders' equity is the amount
–Accountancy, Business and Management (ABM),
left over after liabilities are deducted from assets:
pages 2-3
Textbook: Basic Accounting Theory and Practices – Assets - Liabilities = Owner's (or Stockholders') Equity
Ma. Luisa Witty Ramirez – Reyes, pages 16-21
What can you notice or what can you say about the
picture?
The word equation comes from the word equal. For any
equation, one side always equals another.
.
2. What things fall under assets, liabilities and Assessment
owner’s equity?
3. What did you found out? Individual Activity:
Using the given data accomplish the accounting
Let us assume that on July 1, 1991 Orlando Reyes equation by applying necessary operations.
engaged in business with a cash capital investment
of P100,000.00. On this date, the accounting Assets Liabilities Owner’s
equation is: Equity
a. 760,000 360,000 ?
Assets = Liabilities + Owner’s b. 860,000 ? 592,000
Equity c. ? 108,000 760,000
Cash = Capital d. 626,600 376,240 ?
P100,000.00 = 0 + P100,000.00 e. ? 800,000 (100,000)
Abstraction
Application:
Work Together:
I will group you into five groups. Review the
Accounting Equation and examine each of the
transactions and perform necessary operation with
the use of Accounting Equation.
Transactions:
1. Orlando deposited P750,000 in the bank in the
name of D & W Enterprise.
2. Orlando purchased land amounting to P500,000,
paid in cash.
3. Orlando Reyes purchased P20,000 supplies
paying in the near future.
4. During the month, P15,000 is paid to creditors
on account.
5. Received P55,000 from services rendered.