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Learning Module for Senior High School Accountancy , Business and Management 12
FUNDAMENTALS OF
ACCOUNTANCY, BUSINESS &
MANAGEMENT 2
Quarter 1 Module 1 Week 1
Statement of Financial Position
(SFP)
GRADE 12
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_Learning Module for Senior High School Accountancy , Business and Management
1. Use the module with care. Do not put unnecessary mark/s on any part of the module.
Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities included
in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not hesitate to consult your
teacher or facilitator. Always bear in mind that you are not alone.
We hope that through this material, you will experience meaningful learning and gain deep
understanding of the relevant competencies. You can do it!
This module was written for you to accomplish at home. It was carefully
designed so that you can work at your own pace and allow self-discovery of the
concept through activities that you will perform. Activities were also selected to allow
independent learning which also aims to develop students’ reading comprehension
skills through understanding written texts.
2. Prepare an SFP using the report form with proper classification of items as current
and non- current
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_Learning Module for Senior High School Accountancy , Business and Management
What I Know
Instruction: Fill in the blank with the correct answer (Critical Thinking,
Communication and Collaboration)
1. Journal 6. Income
2.Accounting equating 7. Expenses
3.Financial 8. Journalizing
Statement 9. Ledger
4.Assets 10. Posting to
5.Liabilities ledger
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GRADE 12
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_Learning Module for Senior High School Accountancy , Business and Management
Instructions: Write True if the statement is correct and False if the statement is
incorrect (Collaboration)
__________4. The elements of the statement of financial position are Assets and
expenses.
__________5. Current Assets are easily convertible into cash within the normal
operating cycle of the business
___________10. Account form and Report form are the two kinds of forms of the
Statement of Financial Position
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GRADE 12
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_Learning Module for Senior High School Accountancy , Business and Management
STATEMENT OF
MODULE 1 FINANCIAL POSITION
1. Assets are resources you control that have resulted from past events and can
provide you with the future economic benefits
2. Liabilities are your present obligations that have resulted from past events and can
require you give up resources when settling them.
3. Equity means assets minus liabilities. Other terms for equity are
capital, net assets, and net worth.
The above elements are termed Permanent Accounts because their life or
usefulness continues throughout the life of the company.
What’s In
I want you to identify all the Assets, Liabilities and Owner’s Equity of your family.
You can ask your family members to help you identify the elements of the financial
position.
Instructions: Cut out pictures from magazines or you can take a picture or draw all
your family’s assets, I want you to identify all the liabilities, and the owner’s equity
account. Make a reflection of what your family need to do in order to make the
Financial Position more attractive.
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GRADE 12
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_Learning Module for Senior High School Accountancy , Business and Management
EQUALS LIABILITIES
ASSETS +
OWNER’S EQUITY
What’s New
If you can answer scramble words, you can answer the questions given below.
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GRADE 12
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_Learning Module for Senior High School Accountancy , Business and Management
There are two forms of statement of financial position, the report
form and account form. Report form is usually the form used for submission
to the government agencies and financial institution such banks. You can use
any of the form depending on the one who makes the report in the company.
See table below for the format
Suresh Company
Statement of Financial Position
As of December 31,2020
The format given above is the Account form. All assets are found on the
left side of the account and the liabilities and ow ner’s equity account
are found on the right side of then account
The table below shows the Report form format for the statement of financial
position. Assets, liabilities and owner’s equity accounts are in one
direction. You must place the assets first, then the total liabilities and owner’s
equity account. This is usually the format that will be submitted to the
government and private agencies such as Banks. Financial institutions,
Bureau of Internal Revenue, City Treasurer’s office and others.
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GRADE 12
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_Learning Module for Senior High Scool Accountancy , Business and Management
HEADING
CURRENT ASSETS
NON-CURRENT
ASSETS
CURRENT LIABILITIES
LONG TERM
LIABILITIES
OWNER’S EQUITY
What’s More
This time, I want you class to do the following task alone. Make sure to answer them
correctly.
Instructions: Choose the answer that corresponds for each of the question
provided below: Write letter only of the best letter.
Instructions: Choose the correct answer by writing the correct letter/s of your
choice
1. Assets 4. Income
2. Liabilities 5. expenses
3. Equity
a. 1, 2 and 3 c. 1, 2 and 3
b. 1, 2, 3, 4 and 5 d. 1, 4 and 5
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GRADE 12
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_Learning Module for Senior High School Accountancy , Business and Management
2. Information of the financial performance is provided by
a. Statement of profit and loss
b. Statement of changes in owners
c. Statement of financial position
a. Cash flow statement
6.These are easily convertible into cash within the normal operating cycle of the business
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_Learning Module for Senior High School Accountancy , Business and Management
Independent Activity 2.2 (Critical Thinking)
Instructions: Solve for the unknown: In answering the problems below, you must have
to recall the kinds of assets and liabilities account and their examples.
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GRADE 12
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_Learning Module for Senior High School Accountancy , Business and Management
You must buy only the important and the basic needs of the family or buy assets
that has economic benefit in the future, when you don’t have cash do not borrow
money just to acquire it. However, if you have more than enough for your family,
why not think of donating something for the less fortunate specifically this
pandemic situation.
What I can Do
Assessment
Instructions: Compute for the missing amount of the account titles taken from the SPF of
independent company Critical Thinking and Communication)
_______1. Assets are Php 27,000 and owner's equity is Php15,000, liabilities?
_______2. At the end of the first month of operations for TMAM Transportation, the business
had the following accounts: Accounts Receivable, Php2,800; Prepaid Insurance, Php700;
Equipment, Php85,500 and Cash, Php75,550.
On the same date, TMAM owed the following creditors: Mely’s Supply
Company, Php8,000; Mark’s Equipment, Php19,500. The current assets
for the Juana’s Delivery Service are
_______3. At the end of the first month of operations for Mary Anne’s, the business
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GRADE 12
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_Learning Module for Senior High School Accountancy , Business and Management
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had the following accounts: Accounts Receivable, Php4,800; Prepaid
Insurance, Php15,000; Equipment, Php68,200 and Cash, Php40,650. On
the same date, Juana owed the following creditors: Bonny Supply
Company, Php42,000 (due in 6 months); Maria’s Equipment, Php90,500
(due after 2 years). Current liability is
_______4. If during the year total assets increase by Php85,000 and total liabilities
decrease by Php15,000, by how much did owner's equity
increase/decrease?
References
Books
Ferrer, R., & Millan, Z. V. (2017). Fundamentals of Accountancy, Business & Management
Part 2. 1st Edition
Haddock, M., Price, J., & Farina, M. (2012). College Accounting: A Contemporary
Approach, Second Edition. New York: McGraw-Hill/Irwin.
Valencia, E. G., & Roxas, G. F. (2010). Basic Accounting (3rd ed.). Mandaluyong City,
Philippines: Valencia Educational Supply.
Websites
accounting coach.com
https://www.moneymanagement.org/blog/financial-proverbs-that-are-still-true-today
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_Learning Module for Senior High School Accountancy , Business and Management
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Additional Activities
Prepare a SPF for the company using report form.
Your neighbor who has a Sari- Sari store hired you to prepare his sari-sari store’s
Statement of Financial Position. In order to prepare the statement, you identified the following
assets and liabilities of Mr. Martinez after he made an investment of P159,000.00.
a. His sari-sari store has cash deposited in a bank account amounting to P50,000
b. His sari-sari store has a lot of uncollected sales from customers amounting to
P75,000
c. The total amount of merchandise left inside the store is P30,000
d. He already paid one year’s rent in advance amounting to P12,000
e. The value of all the company’s furniture amounted to P100,000
f. He bought merchandise from his supplier amounting to P25,000 and the supplier
agreed that payment can be made 2 months after year-end
g. SSS, Phil health and Pag-big payables for his one employee totaled P5,000
h. The sari-sari store had outstanding liabilities to utility companies amounting to
P3,000
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_Learning Module for Senior High School Accountancy , Business and Management
Other Activity
HEADING
Current Assets P167,000 Non-Current 100,000
Total Assets P267,000
Current Liabilities P8,000
Non-Current 50,000
Total Liabilities 58,000
Equity P 209,000
Total Liabilities & Owners Equity P267,000
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GRADE 12
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_Learning Module for Senior High School Accountancy , Business and Management
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Name: ____________Grade Level: ______Section: _____Score: _________
Learning Content: Account titles under assets, liabilities and capital account
of the Statement of Financial Position.
Worksheet Activity 1
Write P if the account title is permanent account and T if the account title is
temporary. Use another sheet of paper for your answer.
2 Liabilities 12 Cash
4 Capital 14 Furniture
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