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FABM2
Quarter 1 Module 2
New Normal ABM for Grade 12

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 GRADE 12
__________________________________________________________________________________________
Learning Module for Senior High School Accountancy , Business and Management
Fundamentals of Accountancy, Business and Management 2 – Grade 12
Alternative Delivery Mode
Quarter 1 – Module 1: Statement of Comprehensive Income (Sole Proprietorship)
First Edition, 2020

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Published by the Department of Education

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Undersecretary: Diosdado M. San Antonio

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Writers: Khings Novie J. Soya

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Printed in the Philippines by ________________________

Department of Education

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 Learning Module for Senior High School Accountancy , Business and Management 12
FUNDAMENTALS OF
ACCOUNTANCY, BUSINESS &
MANAGEMENT 2
Quarter 1 Module 2 Week 2
Statement of Comprehensive Income
(Service Concern)

The following are some reminders in using this module:

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 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!

What I Need to Know

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.

After going through this module, you are expected to:

1. Identify the elements of the Statement of Comprehensive Income and describe

each item for the service business;

2. Prepare a Statement of Comprehensive Income for service business,

What I Know

As a prerequisite to FABM2 is FABM1. You must recall through

your stock knowledge the Elements of Financial Statements. The basic purpose of
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accounting is to provide information that is useful for making economic decision
Accounting information is most commonly communicated to users of accounting
information through the financial statements.

Instruction: Fill in the blank with the correct answer (Critical Thinking,
Communication and Collaboration)

_________ 1. Formerly known as Income Statement.

_________ 2. The excess of revenues over expenses

_________ 3. Refers to proceeds from the sale of merchandise.

__________4. Shows the results of operation of the business for a given period of time.

__________5. Also known as nominal accounts.

__________6. The two elements of financial statements for SCI

__________7. Includes Salaries and Utilities

__________8. If expenses is more than net income.

__________9. Includes rental revenue, sales, and service income

__________10. Best approach for a single proprietorship business

Check your answer:

1. Statement of Comprehensive Income

2. Profit
3. Income/Revenue
4. Statement of Comprehensive Income
5. Temporary Accounts
6. Income and Expenses
7. Expenses
8. Loss
9. Income
10. Single Step Approach

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Instructions: Write True if the statement is correct and False if the statement is
incorrect (Collaboration)

__________1. The revenue earned by a service business for rendering services for a fee is
commonly referred to as Service Income or Service Revenue.

__________2. A Statement of Comprehensive Income may be presented using a “multiple

– step statement “ presentation only?

__________3. Revenue includes both income and gains.

__________4. If expenses are greater than income, the difference is net loss.

__________5. The Revenue earned by the merchandising business from its sales of goods
is commonly referred to as sales.

___________6. Income increases economic benefits during the period in the form of
inflows of cash from rendering services.

___________7. The Statement of Comprehensive Income shows information on an entity’s

financial performance during the period.

___________8. A Statement of Comprehensive Income that shows expenses by its function

is referred to as prepared using single-step approach.

___________9. Expenses encompasses both expenses and losses.

___________10. The statement of profit and loss and other comprehensive income is
synonymous to the income statement.

Statement of
MODULE 2 Comprehensive Income

A Statement of Comprehensive Income consists of all revenues, gains and losses

that cause that equity account to change at the end of the accounting period. They are

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 nominal accounts or temporary accounts because at the end of the accounting period,
balances under these accounts are transferred to the Capital Account, thus having
only temporary amounts and resulting to zero as the balances at the beginning of the
following year.

The elements of Comprehensive Income are as follows:

1. Heading is compose of company name , the SCI title and the date starts with for the
period ended (date)

2. Income are increases in economic benefits during the period in the form of inflows or
enhancement of assets or decreases of liabilities that result in increases in equity , other
than those relating to investments by the business owners.

3. Expenses are decreases in economic benefits during the period in the form of
outflows or depletions of assets or increases of liabilities that result in decreases in
equity, other than those relating to distributions to the business owners.

4. Net Income? (Net Loss) is the result of operation. If the income is greater than the
expenses, then the result in net income while if the expenses are greater than
income, then the result is net loss.

Under the nature of expense method, expenses are presented according to

their nature (for example, depreciation, purchase of materials, transport costs, employee
benefits and advertising costs) and are not reallocated among their functions within the
entity. This method is easy to apply because no reallocation of expenses is necessary.

What’s In

A SCI shows expenses by their nature is referred to as Single-Step

Approach
AYOS Company
Statement of Comprehensive Income
For the period ended December 31, 2019

Income Php5,000.00
Expenses (1,500.00)
Profit for the year Php3,500.00
Other Comprehensive Income 500.00
Total Net Income Php4,000.00
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 =========
Shown below is the format of statement of comprehensive income with proper label
of its elements:

ADRIAN TRANSPORT HEADING

STATEMENT OF COMPREHENSIVE INCOME
For the period January 31, 2020

Service Revenue Php50,000.00

Expenses

Salaries Expense Php15,000.00

Rent Expense 10,000.00
Utilities Expense 5,000.00 30,000.00

Net Income/(Net Loss) Php20,000.00

Add Other Comprehensive Income 4,000.00
Total Net Income Php24,000.00
NET INCOME
==========

What’s New

Activity 1 Now that you have read the brief introduction of Statement of Comprehensive
Income you can answer the statement below. Write the correct word or words to complete
the statement.
_______1. An example to this is gains or losses on hedging derivatives
_______2.An approach used on preparing statement of comprehensive income that shows
expense by its nature.
_______3.An increases in economic benefits during the period in the form of inflows or
enhancements of assets or decreases of liabilities that result in increases in equity
_______4.This occurs when revenue is less than expenses.
_______5.It arises in the course of the ordinary activities of a business and is referred to by
a variety of different names including sales, fee, interest, and etc.
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_______6.The difference between an Income Statement and SCI …
_______7.The nature of business for a single step statement of comprehensive income
_______8.The nature of business for a multi-step statement of a comprehensive income
_______9.the expenses to be given to the company’s employees for the services they have
rendered.
______10.The expenses usually referred to by Zaneco, NAWASA and PLDT

Activity 2. Solve for the unknown (Remember the formula Income minus
Expenses plus Comprehensive Income is equal to Net Income or Net Loss)
1. Service Income ???
Expenses (Php10,000.00)
Net Income/(Net Loss) Php25,000.00

2. Service Income Php35,000.00

Expenses (Php15,000.00)
Net Income/(Net Loss) Php20,000.00
Other Comprehensive Income Php5,000.00
Comprehensive Income ???

3. Service Income Php65,000

Expenses ???
Net Income/(Net Loss) Php18,000
Other Comprehensive Income 2,000
Comprehensive Income Php20,000

4. Service Income Php58,000

Expenses (Php38,0000)
Net Income/(Net Loss) ???
Other Comprehensive Income Php10,000
Comprehensive Income Php30,000

5. Service Income Php80,000

Expenses (Php120,000)
Net Income/(Net Loss) ______________

What’s More

Directions: Analyze the transactions of Tiny Bubbles Co, put an emoji smiley if it is
part in the preparation of Statement of Comprehensive Income and NA if it is not part in the
preparation of SCI.

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Tiny Bubbles, a parlor owner, asks you to prepare her statement of comprehensive income
for the month of August with the following transactions.
1. Her company has cash deposited in a bank account amounting to
P50,000 as her initial capital
2. She bought parlor furniture set amounting to Php75, 000.00 by paying 20% down
and the balance in 12 monthly installments.
3. Supplies expense for the month is Php20,000.00
4. She paid two month’s rent amounting to Php24,000.00

5. Her total income for the month of August is Php120, 000.00 cash.

6. She paid one staff for Php5,000.00 a month

7. The business paid Php4,500.00 for the light, water and internet connection.
8. She has trade receivables amounting to Php25,000.00 for services rendered
9. She had a loan from the bank amounting to Php100,000.00 to be paid in 5 years
10. Paid transportation expenses amounting to Php2,500.00.00

Note: If you failed to score at least four

(4) out of five (10), please read again…

What I Have Learned

Directions: Prepare a Statement of Comprehensive Income for the following

independent transactions. Use your surname as your company name.

1. Service Revenue Php95,000.00; Salaries Expense Php5,000.00; Transportation

Expense Php15,000.00; Rent Expense Php20,000.00; Utilities Expense
Pph3,000.00; Other Comprehensive Income is Php8,000.00

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 GRADE 12
_________________________________________________________________________________________
_Learning Module for Senior High School Accountancy , Business and Management

♥♥♥What I Need to Reflect (Character)

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

Practice makes perfect!

. You can prepare an SCI
. (Collaboration and Critical Thinking)

1. Salaries Expense Php25,000.00; Transportation Expense Php1,000.00;

Rent Expense Php10,000.00; Utilities Expense Php5,000.00; and Service
Revenue is Php40,000.00.

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 GRADE 12
_________________________________________________________________________________________
_Learning Module for Senior High School Accountancy , Business and Management

Assessment
Prepare a Statement of Comprehensive Income

1. Service Revenue Php95,000.00; Salaries Expense Php5,000.00;

Transportation Expense Php15,000.00; Rent Expense Php20,000.00; Utilities
Expense Pph3,000.00; Other Comprehensive Income is Php8,000.00

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.
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 GRADE 12
_________________________________________________________________________________________
_Learning Module for Senior High School Accountancy , Business and Management

Teaching Guide in Senior High School Fundamentals of Accountancy Business and Management
2, donated by the Commission on Higher Education in Collaboration with the Philippine Normal
University to Department of Education

Websites:
https://asia.nikkei.com/Spotlight/Coronavirus/Manila-lockdown-cripplesbusinesses-big-and-small
https://soffront.com/blog/best-tips-run-business-time-lockdown/

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Additional Activities

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 GRADE 12
_________________________________________________________________________________________
_Learning Module for Senior High School Accountancy , Business and Management

Answer Key

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What I can do : True or False
1. True
2. False

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 GRADE 12
_________________________________________________________________________________________
_Learning Module for Senior High School Accountancy , Business and Management
3. True
4. True
5. True
6. True
7. True
8. False
9. True
10. True

What’s new..: activity 1:

1. Comprehensive Income
2. Single Approach
3. Income
4. Net Loss
5. Revenues
6. None
7. Single Proprietorship
8. Merchandising
9. Salaries Expense
10. Utilities expense

Activity 2

1. Php35,000.00 4. P20,000.00
2. Php25,000.00 5. (Php40,000.00)
3. Php47,000.00

What’s more…

Numbers 1, 2 and 9 = NA

Number 3 to 8 and 10 =

What I can do …

Company Name

Statement of Comprehensive Income

For the period ended _____

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 GRADE 12
_________________________________________________________________________________________
_Learning Module for Senior High School Accountancy , Business and Management

Service Revenue Php40,000.00

Rent Expense Php10,000.00
Salaries Expense 25,000.00

Utilities Expense 5,000.00

Transportation Expense 1,000.00 (Php41,000.00)
Net Loss (Php1,000.00)
==========

Assessment:

Company Name
Statement of Comprehensive Income
For the period ended______

Service Revenue Php95,000.00

Rent Expense Php20,000.00

Salaries Expense 5,000.00
Utilities Expense 3,000.00
Transportation Expense 15,000.00 43,000.00
Net Income Php52,000.00
Comprehensive Income 8,000.00
Net Comprehensive Income PHP 60,000.00
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