Republic of the Philippines

Department of Education
Region IV (A) – CALABARZON
City Schools Division of Antipolo City
District I – C
MUNTINDILAW NATIONAL HIGH SCHOOL
St. Martin de Porres Street., Sitio Dilain, Muntindilaw, Antipolo City

School ; Muntindilaw National High Grade

12
School Level:
LESSON Teacher: Learning
EXEMPL LILIBETH E. ELIGAN FABM2
Area
AR
Teaching Date and Quarter
Time: Sept. 1ST

A. identify the element of SFP and describe each

I.OBJECTIVES B. classify the accounts under each element
C. recognize the importance of the classifying accounts of each element in
preparing SFP
The learners demonstrate an understanding of account titles under the assets,
liabilities, and capital accounts of the Statement of Financial Position, namely,
cash, receivables, inventories, prepaid expenses, property, plant and equipment,
A. Content Standards payables, accrued expenses, unearned income, long-term liabilities and capital
that will equip him/her in the preparation of the SFP using the report form and
account form

The learners are able to solve exercises and problems that require preparation of
B. Performance Standards an SFP for a single proprietorship with proper classification of accounts as
current and noncurrent using the report form and the account form
C. Most Essential Learning The learners identify the elements of the SFP and describe each of them.
Competencies (MELC)
(If available, write the indicated
MELC)

III. LEARNING
RESOURCES
A. References
MELC ABM G12 PIVOT BOW R4QUBE Curriculum Guide p 373 Teaching
a. Teacher’s Guide
Guide for Senior High School p.13-15
Pages
b. Learner’s Material NA
Pages
c. Textbook Pages NA
https://drive.google.com/file/d/1E5wzi3vQqYMNoIvFphZQuZ_1A2gvFG8w/view?usp=sharing
d. Additional Materials
from Learning https://www.coursehero.com/file/p5of3a4i/Identify-the-elements-of-the-SFP-and-describe-each-of-these-items-
for-a/
Resources
B. List of Learning Resources a. Learning Resources https://lrmds.deped.gov.ph/k_to_12
 b. Fundamentals of Accountancy, Business, and Management 2
by Solita A. Frias Phoenix Publishing pp. 2, 8-10
for Development and
Engagement Activities
c. Fundamentals of Accountancy, Business, and Management 2
by Dani Rose C. Salazar Rex Book Store pp. 2-18

IV. PROCEDURES
What I need to know?
A. MELC: identify the element of SFP and describe each
Objectives:
A. identify the element of SFP and describe each
B. classify the accounts under each element
C. recognize the importance of the classifying accounts of each element in
preparing SFP
What’s new?
Digital/Online LMS Modality: Kotobee Module 1 in FABM
Modular Modality:

Self-testing Activity

A. Introduction
 Note: The teacher will give them at least 5 minutes to do the task.

B. Development A. What I know?

Digital /Online LMS Modality: Kotobee: Module in FABM2
Modular Modality:

Review:

Classify the following accounts as to ASSETS, LIABILITIES and EQUITY.

Write your answer on the table provided

Accounts payable Owner’s Capital

Accounts receivable Property plant and Equipment
Merchandise Inventory Cash and cash equivalents
Unearned Income Mortgage Payable
Accrued Income Intangible assets

ASSETS LIABILITIES EQUITY

B. What I know but I don’t understand

Can you describe the account under each element?

C. What I need to know

How are assets and liabilities classified?

What’s in?
Digital/Online Modality: Kotobee Module in FABM2

Modular Modality:

Lesson 1 Statement of Financial Position 

       Statement of Financial Position is also known as Balance Sheet.  This

statement includes the amounts of the company’s total assets, liabilities, and
owner’s equity which in totality provides the condition of the company on a
specific date. (Haddock, Price, & Farina, 2012). 

     The accounts in the Statement of Financial Position (SFP) is called

Permanent or Real accounts. These accounts are permanent because
their balances remain intact and forwarded to the next accounting period as the
beginning balance. Some examples of permanent or real accounts include Cash,
Accounts Receivable, Accounts Payable, Loans Payable and Capital among
others. 

Elements of Statement of Financial Position

       1. ASSETS are the resources owned by the business. These are

classified into two. The current assets and the noncurrent assets. 

       Current Assets are assets that are expected to be converted to cash

within a year.

       Non-current Assets are long term assets  which the full value will
not be realized within the accounting year.

CURRENT ASSETS NON CURRENT ASSETS

Assets Notes Receivables (2 years)
Accounts Receivables Property, Plant and Equipment
Prepaid Expenses Intangible Assets
Merchandise Inventory

From the basic accounting equation assets is obtained using the formula:

                    ASSETS = LIABILITIES + OWNER'S EQUITY

2. LIABILITIES are the debts or obligations to pay by the business.

These are the what the business owes from the outside party.  It is
obtained by subtracting the owner's equity from the assets.

       Liabilities are classified as current liabilities and non-current

liabilities.

       Current Liabilities are short term liabilities that are expected to pay
within a year.

       Non current liabilities are long term liabilities that are expected to
pay beyond a year.
 CURRENT LIABILITIES NON CURRENT LIABILITES
Accounts Payable Notes Payable ( 2years)
Accrued Expenses Loans Payable (5 years)
Unearned Income Mortgage Payable 10 years)

From the basic accounting equation, liabilities is the difference between

the assets and owners equity as presented in the equation below:

LIABILITIES = ASSETS - OWNER'S EQUITY

OWNER'S EQUITY is the worth of the business. It is the difference

between the assets and liabilities.

                      OWNER’S EQUITY = ASSETS - LIABILITIES

What is it?
Digital/Online Modality: Kotobee Module in FABM2

Modular Modality:

C. Engagement What’s more?

Digital/Online Modality: Kotobee Module in FABM2

Modular Modality:
QUIZ
Directions: Read each item carefully and write the letter of choice on your
answer sheet.

1.What accounts are permanent for their balances remain intact

and forwarded to the next accounting period?
A. expenses C. nominal
B. income D. real

2. What accounts are presented as the assets on the portion of the

Statement of Financial Position or SFP but are reduction to the
company’s assets?
A. contra assets C. discounts
B. allowances D. returns

3.What kind of account is accrued income?

A. capital C. expense
B. assets D. liabilities

4. Which of the following is a current asset?

A. accrued expense C. unearned income
 B. accrued income D. copyright

5. What kind of account is accrued salaries expense?

A. current liability C. noncurrent liability
B. current asset D. noncurrent asset

6. Which of the following accounts is a NON CURRENT asset?

A. plant and equipment C. short-term investment
B. inventories D. prepaid expense

7. Which of the following is an example of contra asset account?

A. accrued expense
B. unearned income
C. interest receivables
D. allowance for bad debts

8. Which of the following statements is TRUE?

A. Current assets are assets that are expected to be converted to cash
within a year.
B. The elements in Statement of Financial Position are temporary accounts.
C. Current Liabilities are short term liabilities that are expected to pay
beyond a year.
D. Liabilities are the receivables of the business.

9. Cash is an example of what account?

A. Current assets C. Non current assets
B. Current liabilities D. Non current liabilities

10. Which of the following does not belong to the group?

A. plant, property and equipment
B. merchandise inventory
C. prepaid expenses
D. cash

What I can do?

Digital/Online Assessment: Kotobee Module in FABM 2

Modular Assessment:
1. List down all things you personally own like savings, clothes, bag, etc. and
the name of person you are indebted (may pagkakautang)
2. Identify them whether they are current assets, non current assets, current
liabilities and non current liabilities.
3. Write a short explanation why you consider them as current and non current.

What other Enrichment activities can I engage in? (Additional Activities)

Ask your parents about the assets and liabilities of your family.

D. Assimilation What have I learned?

Digital/ Online/ Modular Modality.
Answer the question:

V. REFLECTION
(Reflection on the Type of Formative
Assessment Used for This Particular
Lesson)
1.Why is it important to identify our assets, liabilities and equity?
2. How will you relate our lesson in your daily life?
What I can do? (Assessment)
Using your listed personal things and debts, create an equation where you can
show the elements of SFP.
Digital/ Online Modality and Modular Modality
What significant learnings did you gain from the lesson? Write your insights by
completing the sentences below:
I understand that ____________
I realize that__________________