Fundamentals of Accountancy Business and Management 1pdf Compress

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
Challenging Activities 22-24
Answer Key 27-30
Rubrics 31
iv
Answer Key 44-47
Answer Key 59-64
Rubrics 65
Answer Key 77-80
Activity Sheets for Quarter 3, Week 7-9
Answer Key 91-96
v
Answer Key 111-115
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. Define accounting, describe the nature of accounting, explain the functions of
accounting in business, and narrate the history/origin of accounting.
2. Define external users and give examples and define internal users and give examples.
3. 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 ACCOUNTING 6. SACIOTNTRAN TRANSACTION
2. GINYIFNTIED IDENTIFYING 7. FROAMNIOTIN INFORMATION
3. GINDORCER RECORDING 8. SNOISICED DECISIONS
4. MANEAGENTM MANAGEMENT 9. KOOBINGPEEK BOOKKEEPING
5. NOMUNCOMICITA COMMUNICATION 10. ECRIDSROT CREDITORS
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.
FALSE Accounting is the process of identifying, measuring and communicating
economic decisions.
_____2.
TRUE The accounting process are in the following order: recording,
identification and communicating.
_____3.
TRUE Internal users are users within the business.
_____4.
TRUE Accounting is an art, a service activity and also a process.
_____5.
FALSE Example of an internal user of a Fast-food chain is manager of bank.
_____6.
TRUE Luca Pacioli is the Father of Accountancy
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_____7.
FALSE The AICPA mentioned four phases of accounting in its definition
namely: recording, classifying, summarizing and communicating.
_____8.
TRUE Accounting deals with financial statements and transactions.
_____9.
TRUE Double -entry bookkeeping was introduced in the 19th Century.
_____10.
TRUE 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.
A It is an information system.
A. Accounting B. Marketing C. Finance D. Economics
B
___2. An example of an external user is:
A. Employees B. Customers C. Management D. Owners
C
___3. Accounting deals with transactions and what kind of information?
A. Entrepreneurial B. Economical C. Financial D. Ethical
D
___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.
B 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.
B
___6. The definition of accounting by American Accounting Association
includes the following phases, EXCEPT
A. Identifying B. Measuring C. Summarizing D. Communicating
A
___7. Accounting is a/an
A. Legislative system C. Business system
2
B. Economic system D. Information system
B
___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
C
___9. Creditors, government, potential investors and _________ are examples of
external users
A. Managers B. Stockholders C. Customers D. Employees
B
___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 C. Local users D. Foreign users
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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 Interpreting
Accounting Identifying Double-Entry Bookkeeping
Internal Users Classifying 19th Century External Users

Summarizing
ACCOUNTING It is the process of identifying, recording and communicating

__________1.
economic events of an organization to interested users.
__________2.
IDENTIFYING It is the process of accounting that involves the determination of
what economic transactions transpired.
LUCA PACIOLI
__________3. He is the father of Accounting.
__________4.
ACCOUNTING It is the language of business.
5. The__________
SUMMARIZING is the third phase in the Definition of Accounting by AICPA.
6. INTERNAL
__________
USERS are people within a business organization who use financial
information.
7. ACCOUNTING
__________ is an information system.
INTERNA
8. Employees is one example of __________ users.
L
4
Double-Entry
9. In the 14th century Luca Pacioli described the system __________
Bookkeeping used by
Venetian merchants in his Summa de Arithmetica, Geometria, Proportioni et

Proportionalita.
means
10. Accounting is a ___________ and not an end.
11. Potential investors is one example of __________.

external users
financial
12. Accounting deals with _________ information and transactions.
13. ___________
19th century the beginning of Modern Accounting in Europe and America
EXTERNAL
14. ___________
USERS are those entities interested in the financial results of a
business, but who take no part in operating the entity.
ACCOUNTING is a service activity.

15. __________
16. Accounting is the art of ___________,

RECORDING (17)__________, SUMMARIZING
CLASSIFYING (18)___________
in a significant manner and in terms of money, transactions and events which

INTERPRETING the results
are in part at least of a financial character and (19)___________
thereof.
20. __________
INTERNAL user include owners/stockholders.
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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
classifying and summarizing
_____2. Identification
B. Financial Statements are analyze and interpreted by users
_____3. Recording
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
F. Sees accounting as a service activity
Council (ASC)
G. Reports prepared as a bases for making economic
_____8. Summarizing
decisions
_____9. External users
H. Recording, Classifying, Summarizing and Interpreting
_____10. Phases of
I. Suppliers, Creditors, Prospective investors
Accounting
J. Involves preparation of financial reports
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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)__________.
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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.
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Name: ___________________________________________________ Date: _____________
Grade/Section:_____________________________________________ Score:____________
Title of the Activity: Let us Review
Most Essential Learning Competency: The learner define accounting; describe the
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 C. Summarizing D. Informing
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___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
___10. They are person within business firm who use financial information.
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
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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
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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
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Rubrics
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.
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Region I
San Fernando City
La Union

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:
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:

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
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9. This principle states that amount shown in the financial statements should be at
its historical cost. COTS
10. Another word for conservatism. RUPEEDNC
II. Identify component of the accounting equation being described. Choose from the items
below.
A. Assets B. Liabilities C. Owner’s Equity

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 Cash on Hand Utilities Expense

Unearned Revenue Notes Payable Land
Sales Capital Equipment
ASSETS LIABILITIES OWNER’S EQUITY
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Name: _____________________________________________________ Date: ___________
Grade/Section: _______________________________________________Score: __________
Title of the Activity: From Concepts to Application
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 Accrual Basis Going Concern

Monetary Unit Time Period
1. 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 Full Disclosure Matching

Materiality Conservatism Objectivity
Revenue Recognition
1. 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
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Name: ______________________________________________________Date: __________
Grade/Section: _______________________________________________ Score:__________
Title of the Activity: Real Life Situations
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. 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
III. 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.
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Note: Check the equality of the accounting equation.
Cash Supplies Equipment Accounts L, Capital Revenue Expenses
Payable
24
Name: ______________________________________________________Date: __________
Grade/Section: ________________________________________________Score: _________
Title of the Activity: Enrichment Activities
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 - ___________________________
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4. Cash - __________________________
5. Interest Expense - ____________________
6. Office Supplies - ________________________
7. Sales - ___________________________
8. Service Revenue - ________________________
III. 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.

Payable
26
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
Test II.
1. C
2. E
3. A
4. D
5. B
Test III.
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.
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
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.
Payable
₱200,000 ₱200,000
-₱10,000 -₱10,000
-₱25,000 ₱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 ₱200,000 ₱42,800 -₱30,700
₱312,100 ₱312,100
Test I.
1. True
2. True
3. False
4. True
5. False
Test II.
1. Liability
2. Asset
3. Asset
4. Asset
29
5. Owner’s Equity
6. Asset
7. Owner’s Equity
8. Owner’s Equity
Test III.

Payable
₱300,000 ₱300,000
-₱20,000 -₱20,000
-₱25,000 ₱150,000 ₱125,000
-₱21,800 ₱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 ₱300,000 ₱45,000 -₱40,500
₱404,500 ₱404,500
30
Rubrics
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
Region I
San Fernando City
La Union

(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-19 and
ABM_FABM11- IIId-e-21
Objectives:
1. Identify and define the five major accounts.
2. Cite examples of each type of account.
3. Prepare chart of accounts.
Prepared by:

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

RevenueGain Owner’sReal Account Account
Equity Real
SETAssetsAssets Liabilities NominalNominal

Liabilities
B. Definitions/Descriptions ExpressExpense
Income Income evenue Gain
Owner’s Equity Real Account
Assets Liabilities Nominal Expense Income

SET B.
_______________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
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
10. Inventory can be classified as?
A. Current Liabilities B. Noncurrent 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.
chart of accounts.
K to 12 BEC CG: (ABM_FABM11- IIId-e-19 and ABM_FABM11- IIId-e-21)
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 Balance Sheet Accounts
Account Number Account Title Account Number Account Title

Assets 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.
a chart of accounts.
K to 12 BEC CG: BM_FABM11- IIId-e-19 and ABM_FABM11- IIId-e-21
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 Description/ Explanation of Account
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
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
Test II.
1. Nominal 2. Real 3. Liabilities 4. Assets
5. Owner’s Equity 6. Gain 7. Expense 8. Income
9. Account 10. Revenue
Test III.
1. Liability 2. Equity 3. Asset 4. Income 5. Expenses
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 5. Expense
44
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
Test II.
1. Credit 2. Credit 3. Debit 4. Debit 5. Debit
6. Credit 7. Debit 8. Credit 9.Debit 10. Credit
Test III.
Sample Answers
ABM COMPANY
Chart of Accounts
Balance Sheet Accounts Balance Sheet Accounts
Account Number Account Title Account Number Account Title

Assets Income
1 101 Cash 1 401 Sales
2 102 Accoounts Receivable 2 402 Service Revenue
3 103 Inventory Expenses
4 104 Building 1 501 Salaries Expense
5 105 Land 2 502 Utilities Expense
Liabilities 3 503 Repair Expense
1 201 Accounts Payable 4 504 Supplies Expense
2 202 Notes Payable 5 505 Rent Expense
3 203 Bonds Payable 6 506 Travel Expense
Owner's Equity 7 507 Tax Expense
1 301 ABM Capital 8 508 Interest Expense
2 302 ABM Withdrawal
45
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 8. Furniture and Fixtures
9. Land 10. Building
Test III.
Sample Answers
ABM COMPANY
Chart of Accounts
Balance Sheet Accounts
Account Normal
Number Account Title Side Description/ Explanation of Account
Current Assets
Checking account balances, coins, and
1 101 Cash Debit other related to the accounts.
Amounts owed by the customer for
2 102 Accounts Receivable Debit services performed or goods sold.
Goods that have been sold to the
3 103 Merchandise Inventory Debit customers.
Noncurrent Assets
4 104 Building Debit Cost to construct or buy a building.
5 105 Land Debit Cost to buy a land.
6 106 Vehicle Debit Cost to buy vehicle.
Current Liabilities
Amounts owed to other company for
1 201 Accounts Payable Credit services performed or goods sold.
46
Interest that has not yet paid by the
2 202 Interest Payable Credit company.
Salaries that has not yet paid by the
3 203 Salaries Payable Credit company.
Noncurrent Liabilities
4 204 Bonds Payable Credit Company obtain fund by issuing bonds.
Long-term debt that will not fall under
5 205 Long Term Debt Credit bonds and mortgage payables.
Long-term debt of the business with a
6 206 Mortgage Payable Credit certain asset as security to it.
Owner's Equity
1 301 ABM Capital Credit Amount invested by the owner.
2 302 ABM Withdrawals Debit Amount withdrawn by the owner.
Temporary accounts being used at end of
3 303 Income Summary Credit the accounting period.
47
Region I
San Fernando City
La Union

(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-23 to
ABM_FABM11-IIIf-24
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:

LEONIDES L. GAVINA
Master Teacher I
Name: _____________________________________________________ Date: ___________
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
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: ___________
Title of the Activity: Learn to Illustrate
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 Credit
Cash 100,000
Ramos, Capital 100,000
To record initial investment of capital
Rent Expense 8,000

Cash 8,000
Paid rent for the month
Office Supplies 3,500

Cash 3,500
Bought office supplies for cash
Laptop 42,500
Accounts Payable 42,500
Bought laptop on account
Cash 42,800
Service Revenue 42,800
Cash received for services rendered

Cash 22,500
Paid laptop bought on account
Utilities Expense 4,500

Cash 4,500
Paid utilities for the month
Salaries Expense 10,000

Cash 10,000
Paid monthly salary of employee
55
Name: _____________________________________________________Date: ___________
Grade/Section: ______________________________________________Score: ___________
Title of the Activity: Enrichment Activities
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 C. Purchases Journal

B. Cash Receipts 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 Credit
Cash 150,000
XYZ, Capital 150,000
To record initial investment of capital
Cash 50,000
Loan Payable 50,000
Cash loan from the bank

Cash 5,375
Bought office supplies for cash
Laptop 33,500
Bought laptop on account
Cash 42,800
Cash received for services rendered

Cash 16,750
Partial payment for laptop bought on account
57
Cash 3,225
Paid utilities for the month

Cash 9,500
Paid monthly salary of employee
58
Answer Key:
Simple Activities
Test I.
1. Ledger 4. Ledger
2. Journal 5. Journal
3. Journal 6. Journal
Test II.
1. General Journal
3. Accounts Payable Subsidiary Ledger
5. Sales Journal
6. General Ledger
7. Accounts Receivable Subsidiary Ledger
Test III.
1. Accounts Receivable Subsidiary Ledger
3. General Journal
4. Sales Journal
5. Accounts Payable Subsidiary Ledger
8. General Ledger
Moderate Activities
Test I.
1. False 6. False
2. False 7. True
3. False 8. True
4. True 9. False
5. False 10. False
Test II.
1. L 6. J
2. J 7. J
3. J 8. J
4. J 9. L
5. L 10. L
59
Test III.
Cash
Explanation Debit Explanation Credit
Initail investment 100,000 Paid rent 8,000
Services rendered 42,800 Bought office supplies 3,500
Paid A/P laptop 22,500
Paid utilities 4,500
Paid salary 10,000
TOTAL DEBIT 142,800 TOTAL CREDIT 48,500
DEBIT BALANCE 94,300
Office Supplies
Bought office supplies 3,500
TOTAL DEBIT 3,500
DEBIT BALANCE 3,500
Laptop
Bought laptop 42,500
TOTAL DEBIT 42,500
Accounts Payable
Paid A/P laptop 22,500 Bought laptop on account 42,500
TOTAL CREDIT 22,500 TOTAL CREDIT 42,500
CREDIT BALANCE 20,000
Ramos, Capital
Initial investment 100,000
TOTAL CREDIT 100,000
Service Revenue
Services rendered 42,800
TOTAL CREDIT 42,800
60
Rent Expense
Paid Rent 8,000
TOTAL DEBIT 8,000
DEBIT BALANCE 8,000
Utilities Expense
Paid utilities 4,500
TOTAL DEBIT 4,500
DEBIT BALANCE 4,500
Salaries Expense
Paid salaries of employees 10,000
TOTAL DEBIT 10,000
TRIAL BALANCE
Explanation Debit Credit
Cash 94,300
Laptop 42,500
Rent Expense 8,000
TOTAL 162,800 162,800
Test I.
1. Cash Receipts Journal 6. Cash Receipts Journal
2. Cash Payments Journal 7. Cash Receipts Journal
3. Sales Journal 8. Cash Payments Journal
4. Purchases Journal 9. Cash Payments Journal
5. Cash Payments Journal 10. Cash Receipts Journal
61
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.
Cash
Initial investment 150,000 Bought office supplies 5,375
Cash proceeds from bank 50,000 Paid A/P laptop 16,750
loan
Services rendered 42,800 Paid utilities 3,225
Paid salary 9,500
TOTAL DEBIT 242,800 TOTAL CREDIT 34,850
Office Supplies
Bought office supplies 5,375
TOTAL DEBIT 5,375
DEBIT BALANCE 5,375
Laptop
Bought laptop 33,500
TOTAL DEBIT 33,500
62
Accounts Payable
Paid A/P laptop 16,750 Bought laptop on account 33,500
TOTAL CREDIT 16,750 TOTAL CREDIT 33,500
Loans Payable
Cash loan from bank 50,000
TOTAL CREDIT 50,000
XYZ, Capital
Initial investment 150,000
TOTAL CREDIT 150,000
Service Revenue
Services rendered 42,800
TOTAL CREDIT 42,800
Utilities Expense
Paid Utilities 3,225
TOTAL DEBIT 3,225
DEBIT BALANCE 3,225
Salaries Expense
Paid salaries of employees 9,500
TOTAL DEBIT 9,500
DEBIT BALANCE 9,500
63
TRIAL BALANCE
Cash 207,950
Laptop 33,500
Loans Payable 50,000
TOTAL 259,550 259,550
64
Rubrics
Moderate Activities
Test III.
Descriptors
Criteria 5 3
Concept Each section of the diagram Each section of the diagram contains
Arrangement contains 3 facts easily identified. very few facts that are not easily
identified.
Content 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.
Presentation Clean, neat, and well organized Messy and unorganized. Not well
put together.
Test I.
Descriptors
Criteria 5 3
Knowledge The drawing represents a clear The drawing is not representative of
illustration of what is being asked what is being asked for.
for and the details are complete.
Neatness The drawing has very minimal The drawing has many erasures and
erasures and the drawing was it was done with haste.
done carefully.
Test II.
Descriptors
Criteria 5 3
Knowledge The student has a clear The student does not know how to
understanding of what needs to use electronic spreadsheet and the
be illustrated using electronic drawing is not representative of
spreadsheet and the illustration what is being asked for.
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
Region I
San Fernando City
La Union

(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:
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:

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 CREDIT
1. Assets
2. Liabilities
3. Owner’s, Capital
4. Owner’s, Withdrawal
5. Revenues
6. Expenses
66
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

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 CREDIT
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
Name:___________________________________________________Date: ______________
Grade/Section: ____________________________________________Score: _____________
Title of the Activity: Rule of Thumb

transactions, and solve simple problems and exercises in the analyses of business
transactions.
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.
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.
Example:
Rendered service revenue on account, ₱2,500 Accounts Service 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
6. Accounts Payable Cash ₱1,000

₱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 Payable

₱850 ₱850
73
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
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.
1. Equipment X, Capital ₱15,000

₱15,000
2. Furniture ₱20,000 Cash ₱20,000
3. Supplies ₱500 Accounts Payable

₱500
4. Cash ₱5,000 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
9. Cash ₱5,000 Service Revenue
₱5,000
10. Utility Expense Cash ₱850

₱850
76
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.
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
8. Increase in assets and increase 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
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.
Test I.
1. + + 0
2. - 0 -
3. + 0 +
4. - 0 -
5. + 0 +
6. - - 0
7. - - 0
8. - 0 -
9. + 0 +
10. - 0 -
79
Test II.
1. Dr. Cash on Hand ₱100,000
Dr. Cash in Bank ₱400,000 Cr. X, Capital ₱500,000
2. Dr. Photocopying ₱300,000 Cr. Cash in Bank ₱50,000

Equipment
Cr. Accounts Payable ₱250,000
3. Dr. Taxes and Licenses ₱2,000 Cr. Cash in Bank ₱2,000

Expense
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 Cr. Cash on Hand ₱2,500

Expense
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
Region I
San Fernando City
La Union

(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-29 to
ABM_FABM11-IVa-d-32
Objectives:
1. Understand the accounting cycle of a service business.
2. Know the account titles used in journalizing entries.
3. Record transactions of a service business in the general journal.
4. Post transactions in the general ledger.
5. Prepare a trial balance.
Prepared by:

LEONIDES L. GAVINA
Master Teacher I
Name: ______________________________________________________Date:___________
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 amount

Debit account Credit account Credit amount
Reference (for posting reference)
1. ______________________________ 2. ________________________________
2. ______________________________ 3. ________________________________
5. ______________________________
82
Name: _____________________________________________________ Date: ___________
Grade/Section: ______________________________________________ Score: __________
Title of the Activity: Name that Account

Directions: Identify what account is being described or asked for.
I. Identify what account title is being described in the statement below.
Accounts Receivable Office Supplies Office Equipment

Furnitures and Fixtures Accounts Payable Notes Payable
Communication Expense Rent Expense 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 Accounts Receivable Equipment Accounts Payable

Notes Payable Capital Drawing Service Revenue
Communication Expense Utility Expense Rent Expense
Account Account
Transactions Debited 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: __________
Title of the Activity: Straight Problem

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 Accounts Receivable Office Supplies

Mapangarap, Capital Mapangarap, Drawing Service Revenue
Permits and Licenses Expense Utility Expense Salary Expense
Rent Expense Accounts Payable
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:___________
Title of the Activity: Straight Problem

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 Clinic Supplies Medical Equipment Furnitures and Fixtures

Notes Payable Albularyo, Capital Albularyo, Drawing Professional Fees
Rent Expense Utility Expense Salary Expense
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 6. True
2. False 7. False
3. True 8. False
4. True 9. False
5. True 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 5. Office Equipment
2. Furnitures and Fixtures 6. Accounts Payable
3. Accounts Receivable 7. Communication Expense
4. Rent Expense 8. Office Supplies
91
Test II.
Account Account
Transactions Debited Credited
a. The owner invested cash to the business. Cash Capital
b. Borrowed money from a bank and issued a Cash Notes Payable
note.
c. Rendered photocopying service for cash. Cash Service
Revenue
d. Received a bill for electricity consumption. Utility Expense Accounts
Payable
e. Received payment from customers for Cash Accounts
services rendered last month. Receivable
f. Sent a bill for repairs made today. Accounts Service
Receivable Revenue
g. Bought equipment for cash. Equipment Cash
h. The owner withdrew cash for personal use. Drawing Cash
i. Paid the rent of office space. Rent Expense Cash
j. Received and paid the monthly telephone Communication Cash
bill. Expense
Test III.
1. Insurance Expense and Cash

2. Cash and Service Revenue
3. Salaries Expense and Cash
4. Accounts Receivable and Service Revenue
5. Office Supplies and Accounts Payable
92
Test I.
Date Particulars Ref Debit Credit
Dec 1 Cash 150,000
Mapangarap, Capital 150,000
Initial investment
Dec 2 Office Supplies 5,000

Bought office supplies on account

Dec 4 Rent Expense 10,000
Cash 10,000
Paid office rent
Dec 7 Permits and Licenses Expense 3,500

Cash 3,500
Paid business permits and other
licenses
Dec 10 Cash 9,500

Received cash for services
Dec 18 Accounts Payable 2,500

Cash 2,500
Paid accounts payable
Dec 21 Accounts Receivable 25,400

Billed clients for services rendered
Dec 26 Mapangarap, Drawing 3,000

Cash 3,000
Owner’s cash withdrawal
Dec 27 Cash 12,450

Accounts Receivable 12,450
Collection of Accounts Receivable
Dec 28 Utility Expense 2,650

Received utility bill
Dec 30 Salary Expense 13,000
93
Cash 13,000
Paid salary of clerk
Test II.
Test III.
TRIAL BALANCE
Account Title Debit Credit
Cash 139,950
Mapangarap, Capital 150,000
Mapangarap, Drawing 3,000
Rent Expense 10,000
94
Permits and Licenses Expense 3,500
Utility Expense 2,650
Salary Expense 13,000
TOTAL 190,050 190,050
Test I.
Aug 1 Cash 160,000
Albularyo, Capital 160,000
Initial investment
Aug 2 Rent Expense 10,000

Cash 10,000
Paid rent for the month
Aug 5 Clinic Supplies 15,500

Cash 15,500
Bought clinic supplies
Aug 7 Medical Equipment 160,000

Cash 60,000
Notes Payable 100,000
Bought medical equipment
Aug 7 Furnitures and fixtures 45,000

Cash 45,000
Bought furnitures for clinic
Aug 15 Notes Payable 40,000

Cash 40,000
Paid N/P to Sta. Cruz Medical Supplies
Aug 15 Cash 20,500

Professional Fees 20,500
Recorded professional fees
Aug 26 Albularyo, Drawing 5,500

Cash 5,500
Withdrew cash for personal use
Aug 28 Utility Expense 4,200

Cash 4,200
Paid electricity and water
95
Aug 30 Salary Expense 10,000
Cash 10,000
Paid salary of secretary
Aug 31 Cash 35,000

Recorded professional fees
Test II.
Test III.
TRIAL BALANCE
Cash 25,300
Clinic Supplies 15,500
Medical Equipment 160,000
Furnitues and Fixtures 45,000
Notes Payable 60,000
Albularyo, Capital 160,000
Albularyo, Drawing 5,500
Rent Expense 10,000
Utility Expense 4,200
TOTAL 275,500 275,500
96
Region I
San Fernando City
La Union

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 and

ABM_FABM11-IVa-d -34
Objectives:
1. Understand the rules on debit and credit as applied to adjusting entries.

2. Prepare adjusting entries.
3. Complete the accounting cycle.
Prepared by:

LEONIDES L. GAVINA
Master Teacher 1
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
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

Put the correct adjusting entries from the space provided.
Account Debited Account Credited
Prepaid
Expenses
Asset
Method 1 2
Expense
Method 3 4
Depreciation 5 6
Unearned
Revenues
Liablity
Method 7 8
Income
Method 9 10
98
Name: ______________________________________________________Date: __________
Grade/Section:______________________________________________________Score:__________
Title of the Activity: How to Make Closing Entries
accounting cycle.
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

Direction: Identify the account title from the space provided.
Close the income account Close the expense account

1 ? (Dr) 2 ? (Dr)
Income Summary Expense (Cr)
Close the income summary account Close the withdrawal account
Income Summary 4 ?(Dr)
3 ? (Cr) Withdrawals(Cr)
100
Name: ______________________________________________________Date: __________
Grade/Section:_________________________________________________________Score:__________
Title of the Activity: Make Me
accounting cycle.
K to 12 BEC CG: ABM_FABM11-IVa-d-33 and ABM_FABM11-IVa-d-34)
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

Cash ₱ 100,000.00
Accounts Receivable ₱ 60,000.00
Inventory 50,000.00
Property, Plant and Equipment 120,000.00
Accumulated Depreciation 10,000.00
Land 200,000.00
Accounts Payable 5,000.00
Notes Payable 5,000.00
Mortgage Payable 10,000.00
Capital 270,000.00
Withdrawals 5,000.00
Service Revenue 300,000.00
Rent Expense 15,000.00
Salaries Expense 35,000.00
Tax Expense 5,000.00
Utilities Expense 10,000.00
Totals ? ?
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
accounting cycle
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
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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
Test II.
1. Debit 2. Debit 3. Credit 4. Credit 5. Credit
6. Credit 7. Debit 8. Credit 9. Credit 10. Debit
Test III.
Account Debited Account Credited
Deferrals:
Prepaid Expenses
Asset Method Expense Prepaid
Expense Method Prepaid Expense
Depreciation Expense Contra Account Asset
Unearned Revenues
Liablity Method Unearned Revenues
Income Method Revenues Unearned
Answer Key
Moderate Activities
Test I.
1. Permanent 2.Temporary 3. Permanent
4. Temporary 5. Temporary 6.Temporary
7. Permanent 8. Temporary 9.Permanent 10. Permanent
111
Test II.
1. Balance Sheet Account 2. Balance Sheet Account
5. Income Statement Account 6. Income Statement Account
9. Income Statement Account 10. Balance Sheet Account
Test III.
Close the income account Close the expense account
1 Income 2 Income Summary

Income Summary Expense
Close the income summary account Close the withdrawal account
Income Summary 4 Capital

3 Capital Withdrawals
Answer Key
Difficult Activities
Test I.
ABM Company
Trial Balance
20XX

Cash ₱ 100,000.00
Accounts Receivable 60,000.00
Inventory 50,000.00
Accumulated Depreciation ₱ 10,000.00
Land 200,000.00
Capital 270,000.00
Withdrawals 5,000.00
112
Service Revenue 300,000.00
Rent Expense 15,000.00

Utilities Expense 10,000.00
Totals ₱ 600,000.00 ₱ 600,000.00
Test II.
ABM Company
Income Statement
20XX
Service Revenue ₱ 300,000.00

Less: Rent Expense ₱ 15,000.00
Utilities Expense 10,000.00 65,000.00
Net Income ₱235,000.00
ABM Company
Statement of Changes in Equity
20XX
Capital,
Beginning ₱ 270,000
Net Income 135,000
Less: Withdrawals 5,000
Capital, Ending ₱ 500,000
ABM Company
Balance Sheet
20XX
Cash ₱ 100,000.00
Inventory 50,000.00
Property, Plant and Equipment ₱ 120,000.00
Less: Accumulated Depreciation 10,000.00 110,000.00
Land 200,000.00
113
Total Assets ₱ 520,000.00
Accounts Payable ₱ 5,000.00

Total Liabilities 20,000.00 ₱ 20,000.00
Capital 500,000.00
Total Liabilities and Owner's Equity ₱ 520,000.00
Test III.
ABM Company
Post-Closing Trial Balance
20XX

Cash ₱ 100,000.00
Inventory 50,000.00
Accumulated Depreciation ₱ 10,000.00
Land 200,000.00
Capital 500,000.00
Totals ₱ 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
Test II.
1. D 2. A 3. A 4. B 5. A
114
Test III.
1. Supplies Expense ₱156,000
Supplies ₱156,000
2. Depreciation Expense ₱11,333

Accumulated Depreciation ₱11,333
3. Interest Expense ₱7,333
Interest Payable ₱7,333
4. Rent Expense ₱75,000
Prepaid Rent ₱75,000
5. Salaries Expense ₱50,000
Salaries Payable ₱50,000
115
Region I
San Fernando City
La Union

(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:
1. Describe the nature of transactions in a merchandising business.
2. Record transactions of a merchandising business in the general and special journals.
3. Posts transactions in the general ledger and subsidiary ledgers.
4. Prepares trial balance.
5. Prepares adjusting entries.
6. Completes the accounting cycle of a merchandising business.
7. Prepares the Statement of Cost of Goods Sold and Gross Profit.
Prepared by:

LEONIDES L. GAVINA
Master Teacher 1
Name: __________________________________________________ Date: _____________
Grade/Section:____________________________________________ Score:_____________
Title of the Activity: Buy and Sell

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:__________
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:

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
Sales Discount ₱160
Sales Returns and Allowances ₱1,000
Purchases ₱32,000
Purchase Discount ₱400
Purchase Returns and Allowances ₱2,000
Freight in ₱500
120
Wages Expense ₱4,000
Freight out ₱2,000
TOTAL ₱230,200 ₱230,200
II. 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 Adjusted Trial

Balance Balance
ACCOUNTS DR CR DR CR DR CR
Cash
Accounts Receivable
Allowance for Bad Debts
Merchandise Inventory
Supplies
121
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: __________
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 CR
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
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
8. Sales Journal
Test III.
SALES JOURNAL
Date Invoice Account Debited Post Ref. Accounts Rec.Dr./Sales Cr.
December 16 Mr. Perez 8,000
December 20 Mr. Abad 12,000
20,000
PURCHASES JOURNAL
Credit Debit
Date R.R.No. Account Credited PR Accounts Payable Purchases
December 8 ABC Merchandising 20,000 20,000
20,000 20,000
130
Cash Receipts Journal
Credit Debit
Date Ck. Description Cash Purch A/P Purch- Account PR Amount
No. Disc. ases Title
Dec 4 Purchased 5,000 Furniture 5,000
Furniture and and
Fixtures Fixtures
Dec 6 Purchased Supplies 2,500 Supplies 2,500
Dec 10 Purchased 12,000 12,000

merchandise
Dec 12 Paid 500 Freight In 500
Transportation In
Dec 17 Paid 200 Freight Out 200
Transportation Out
Dec 18 Payment for 4,000 Salaries 4,000
Salaries and Wages and Wages
Dec 18 Payment for on 19,600 400 20,000

account
43,800 400 20,000 12,000 16,700
131
GENERAL LEDGER
Cash Sales Discount
119,840.00 43,800.00 160.00
76,040.00
Accounts Receivable Sales
20,000.00 8,000.00 20,000.00
1,000.00 10,000.00
20,000.00 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 Purchases
20,000.00 20,000.00 20,000
0.00 12,000
32,000
Purchases Discount Salaries and Wages
400.00 4,000
Furniture and
Supplies Fixtures
2,500 5,000
Freight Out Freight In

200 500
Accounts Receivable Accounts Payable

Subsidiary Ledger Subsidiary Ledger
Mr. Perez ABC Merchandising

12/16 8,000.00 8,000.00 20,000.00 20,000.00 12/08
Mr. Abad
12/20 12,000.00 1,000.00
133
Moderate Activities
Test I. Step #4.
AB Mahusay Mini Grocery
Trial Balance
December 31, 20XX
Cash ₱76,040
Accounts Receivable ₱11,000
Supplies ₱2,500
Equipment ₱25,000
Furniture ₱5,000
Accounts Payable ₱0
Sales ₱30,000
Purchases ₱32,000
Freight in ₱500
Freight out ₱200
TOTAL ₱157,400 ₱157,400
Test II. Step #5. Prepare Adjusting entries and post to the general ledger.
Dec. 31 Supplies expense ₱1,000

Supplies ₱1,000
Utilities expense 2,000
Accrued Utilities Expense 2,000
134
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
December 31, 20XX
ACCOUNTS DR CR
Cash ₱76,040
Allowance for Bad Debts ₱220
Merchandise Inventory ₱16,000
Supplies ₱1,500
Equipment ₱25,000
Accumulated Depreciation – Equipment ₱208
Furniture ₱5,000
Accum. Dep. – Furniture ₱42
Accrued Utilities Expense ₱2,000
Sales ₱30,000
135
Purchases ₱32,000
Freight in ₱500
Freight out ₱200
Supplies Expense ₱1,000
Utilities Expense ₱2,000
Depreciation Expense ₱250
Bad Debts ₱220
Income Summary ₱16,000
TOTAL ₱175,870 ₱175,870
136
Test I. Step #7.
ABM Mini Grocery
Income Statement
For the Month Ended December 31, 20XX
Sales ₱30,000
Less: Sales discount ₱ 160
Sales Returns and Allowances 1,000 1,160
Net Sales ₱28,840
Less: Cost of Sales:
Purchases ₱32,000
Less: Purchase discount ₱ 400
Purchase Returns and allowances 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
Gross Profit ₱14,740
Less: Operating Expenses:
Wages expense ₱ 4,000
Freight out 200
Supplies expense 1,000
Depreciation expense 250
Bad debts expense 220 7,670
Net Income ₱ 7,070
137
ABM Mini Grocery
Statement of Owner’s Equity
For the Month Ended December 31, 20XX
AB Mahusay, Capital, December 1 ₱125,000

Add: Net Income 7,070
AB Mahusay, Capital, December 31 ₱132,070
ABM Mini Grocery

Statement of Financial Condition
As of December 31, 20XX
ASSETS LIABILITIES AND OWNER’S
EQUITY
Cash ₱76,040 Accrued Utilities ₱2,000
Expense
Accounts Receivable ₱11,000 AB Mabuhay, Capital ₱132,070
Allowance for Bad Debts ₱220 ₱10,780
Supplies ₱1,500
Equipment ₱25,000
Accum. Dep. – Eqpt. ₱208 ₱24,792
Furniture ₱5,000
Accum. Dep. – Furn. ₱42 ₱4,958
₱134,070 Total Liab. & OE ₱134,070
I. Step #8. Prepare Closing Entries and post to the general ledger.
Dec. 31 Sales ₱30,000
Purchase discount 400
Purchase Returns and Allowances 2,000
138
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
Bad debts expense 220

AB Mahusay, Capital 7,070
II. Step #9. Post-Closing Trial Balance

ABM Mini Grocery
December 31, 20XX
ACCOUNTS DR CR
Cash ₱76,040
Allowance for Bad Debts ₱220
Supplies ₱1,500
Equipment ₱25,000
Accumulated Depreciation – Equipment ₱208
139
Furniture ₱5,000
Accum. Dep. – Furniture ₱42
Accrued Utilities Expense ₱2,000
TOTAL ₱134,540 ₱134,540
Step #10. Prepare Reversing Entry and post to the general ledger.
202_
January 1 Accrued Utilities expense ₱ 2,000
Utilities expense ₱ 2,000
Test I.
SALES JOURNAL
Accounts Rec.Dr./Sales
Date Invoice Account Debited Post Ref. Cr.
December 06 Mr. Perez 4,000
4,000
PURCHASES JOURNAL
Credit Debit
Date R.R.No. Account Credited PR Accounts Payable Purchases
December 6 Magic Grocery 5,000 5,000
December 7 Puregold Grocery 7,000 7,000
12,000 12,000
140
GENERAL JOURNAL
Date Account Titles Debit Credit

December 15 Accounts Payable 1000
Purchases Returns and Allowances 1000
Cash Receipts Journal

Debit Credit
Date O.R. Description Cash Sales A/R Sales Account PR Amount
No. Disc. Title
Dec 1 Beg. Balance 25,000
Dec 7 Cash Sales 8,000 8,000
Dec 8 Collection of 3,920 80 4,000
A/R
36,920 80 4,000 8,000
Cash Disbursements Journal

Credit Debit
Date Ck. Description Cash Purch A/P Purchases Account PR Amount
No. Disc. Title
Dec Payment of 7,000 7,000
10 Account
Dec Payment for 100 Freight In 100
20 Transportation
In
Dec Payment for 750 Salaries 750
25 Salaries and and Wages
Wages
7,850 7,000 850
141
Accounts Accounts
Receivable Payable
Subsidiary Subsidiary
Ledger Ledger
Santos
Sari-Sari Store Magic Grocery
12/5 10,000.00 7,000.00 7,000.00 12/05
10,000.00 5,000.00
Perez Sari-Sari
Store 7,000.00 12,000.00
12/06 4,000.00 4,000.00 5,000.00
4,000.00 Puregold Grocery
1,000.00 7,000.00
1,000.00 7,000.00
6,000.00
Test II.
ABM Mini-Mart
Trial Balance
December 31, 20XX
Debit Credit
Cash ₱ 29,070
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
Total ₱ 74,000 ₱ 74,000
Adjusting entries:
Dec 31 Utilities expense ₱700
Utilities payable ₱700
Supplies expense 300

Supplies 300
Bad debt expense 200

Allowance for Bad debts 200

Accumulated depreciation-Equipment 200
Accumulated depreciation- Furniture 80

143
ABM Mini-Mart
December 31, 20XX
Debit Credit
Cash ₱ 29,070
Allowance for Bad Debts ₱ 200
Supplies 1,000
Equipment 12,000
Accumulated depreciation- Equipment 200
Furniture 4,000
Accounts Payable P 11,000

Utilities payable 700
______, Capital 50,000
______, Drawing 5,000
Sales 12,000
Sales discount 80
Purchases 12,000
Freight in 100
Wages expense 750
Utilities expense 700
144
Total ₱ 81,180 ₱ 81,180
Test III.
ABM Mini-Mart
Income Statement
For the month ended December 31, 20XX
Sales ₱12,000
Sales discount 80
Net Sales ₱11,920
Less: Cost of Sales:
Purchases ₱12,000
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
Gross Profit ₱ 6,820
Less: Operating Expenses:
Wages expense ₱ 750
Depreciation expense 280 2,230
Net Income ₱ 4,590
145
ABM Mini-Mart
Statement of Owner’s Equity
For the month ended December 31, 20XX
______, Capital, December 1, 20XX ₱50,000

Add: Net income 4,590
Total ₱54,590
Less: ______, Drawing 5,000
______, Capital, December 31, 20XX ₱49,590
ABM Mini-Mart
Balance Sheet
As of December 31, 20XX
ASSETS LIABILITIES AND OWNER’S

EQUITY
Cash ₱29,070 Accounts Payable ₱11,000
Accounts Receivable ₱10,000 Utilities Payable ₱700
Allowance for Bad Debts ₱200 ₱9,800 __________, Capital ₱49,490
Supplies ₱700
Equipment ₱12,000
Accum. Dep. – Eqpt. ₱200 ₱11,800
Furniture ₱4,000
Accum. Dep. – Furn. ₱80 ₱3,920
₱61,290 Total Liab. & OE ₱61,290
146
Closing entries:
Dec 31 Sales ₱12,000


Sales discount 80
Purchases 12,000
Freight in 100
Wages expense 750

______, Capital 4,590
_______, Capital 5,000

________, Drawing 5,000
147
ABM Mini-Mart
December 31, 20XX
Debit Credit
Cash ₱ 29,070
Allowance for Bad Debts ₱ 200
Supplies 700
Equipment 12,000
Accumulated depreciation- Equipment 200
Furniture 4,000

Utilities payable 700
______, Capital 49,590
Total ₱61,770 ₱61,770
Reversing entry:
January 1 Utilities Payable ₱700
Utilities Expense ₱700
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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i

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

Enrichment Activities 9-12

Answer Key 13-16

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

Activity Sheets for Quarter 3, Week 4

Simple Activities 32-34

Moderate Activities 35-37

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

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

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

H. Back Cover viii

This Activity Sheets in Fundamentals of Accountancy, Business, and Management 1 is

ACTIVITY SHEETS IN FUNDAMENTALS OF

MELC: The learners define accounting; describe the nature of

MAUREEN P. ABULENCIA MA. RITA D. GARCIA

Title of the Activity: Getting to Know You

K to 12 BEC CG: ABM_FABM11-III-a-1, 2, 4, 7, 8

1. GNTIACNCOU ACCOUNTING 6. SACIOTNTRAN TRANSACTION

2. GINYIFNTIED IDENTIFYING 7. FROAMNIOTIN INFORMATION

3. GINDORCER RECORDING 8. SNOISICED DECISIONS

4. MANEAGENTM MANAGEMENT 9. KOOBINGPEEK BOOKKEEPING

5. NOMUNCOMICITA COMMUNICATION 10. ECRIDSROT CREDITORS

False. Write your answer in the space provided.

on the given statements. Write your answer in the space provided.

A) Accounting as defined by AICPA is the art of (1)__,(2) ,(3) _, in a

D) External users include: (19) ____, (20)_, (21)_______, and

E) Internal Users include: (23)____, (24)_ and (25)______.

_8. Accounting is a service activity. Its function is to provide ______