Republic of the Philippines

Department of Eucation
REGION II

4A’s Lesson Plan – Business Administration (Basic Accounting)

Mrs. Eleine T. Alvarez - Teacher

I. Learning Competencies
A. Prepare the Statement of Financial Position of a single / sole proprietorship.
B. Prepare Statement of Financial Position using the report form and the account form
with proper classification of items as current and non-current.

II. Content
Statement of Financial Position (SFP) : Single / Sole Proprietorship

III. Learning Resources

ABM Specialized Subject
Internet
Actual Bank Forms and pictures ofStatement of Financial Position Elements
Textbooks

Teaching Strategies
Revolving Circles (brainstorming)
Discussion Bingo (sharpening minds)
Advance Organizer (graphic organization)

IV. Experiential Learning Procedure

A. Preliminary Activities
1. Drill on basic elements of Statement of Financial Position using flash pictures
2. Review the elements of Statement of Financial Position using actual
pictures of the elements.
3. Presentation of Objectives: say “Today, we will prepare Statement
of Financial Position of a Single / Sole Proprietorship using the report
form and the account form with proper classification of items as
current and non-current.

B. Activity
Classify the elements of Statement of Financial Position.
Use Think-Pair-Share. Students will look for their pair and will share their ideas and
answer. Then they will look for another pair (this time they are already four in the group)
and share if they have the same answer.
Ask volunteer to present their outputs.

Note: The teacher should go around to determine the group progress as well as to
ensure everybody’s participation.

A B C
 D E F

ASSETS= LIABILITIES+ OWNER’S EQUITY/CAPITAL

A – Current A
(B) – Current (B)
C – Current C – Non-current
D – Current D
E – Non-current E
F – Current F – Current

C. Analysis
1. How did you find the activity?
2. What are the challenges that you encountered in the conduct in the conduct
of the activity?
3. Did you find any clue in classifying the elements of Statement of Financial
Position?
4. What strategy did you use to come up with such groupings?
5. How did you classify the elements of Statement of Financial Position? What is
your basis in classifying the elements?
Finally, say, there are different elements of Statement of Financial Position and we
classify each of the elements as current and non-current. Now, after we classify each element
of SFP, we will now be able to prepare the Statement of Financial Position of a single/sole
proprietorship in an account and report form.

D. Abstraction

Account Form Format

ABC ENTERPRISES
BALANCE SHEET
AS OF January 31, 2021

ASSETS LIABILITIES
Current Assets: Current Liabilities:
Cash xxx Accounts Payable xxx
Accounts Receivable xxx VAT payable
xxx
Supplies xxx Total Current Liabilities xxx
Total Current Assets xxx
Non-current Liabilities:
Non-current Assets: Loans Payable xxx
Land xxx Notes Payable xxx
 Building xxx Total Non-current Liabilities xxx
Equipment xxx Total Liabilities xxx
Fixtures and Furniture xxx
Total Non-current Assets xxx CAPITAL
ABC Enterprises Capital xxx

Total Assets xxx Total Liabilities and Capital xxx

Report Form Format

ABC ENTERPRISES
BALANCE SHEET
AS OF January 31, 2021

ASSETS
Current Assets:
Cash xxx
Accounts Receivable xxx
Supplies xxx
Total Current Assets xxx
Non-current Assets:
Land xxx
Buildings xxx
Equipment xxx
Fixtures and Furniture xxx
Total Non-current Assets xxx
Total Assets xxx

LIABILITIES
Current Liabilities:
Accounts Payable xxx
VAT Payable xxx
Total Current Liabilities xxx
Non-current Liabilities:
Loans Payable xxx
Notes Payable xxx
Total Non-current Liabilities xxx
Total Liabilities xxx

CAPITAL
ABC Enterprises Capital xxx
Total Liabilities and Capital xxx

E. Apllication
Illustration 1
The trial balance of ABC Enterprises was prepared for the period of January 1
to January 31, 2021. As an accountant you are required to prepare a Statement of
Financial Position as of January 31, 2021 in an account format and report format.
Note: An advance payment made by a customer amounting to
P10,000.00 was not yet recorded.
ABC ENTERPRISES
Trial Balance
As of January 31, 2021
 Debit Credit
Cash 240,000.00
Land 500,000.00
Building 500,000.00
Accounts Receivable 25,000.00
Supplies 150,000.00
Delivery Vehicle 125,000.00
Office Equipment 50,000.00
Fixtures and Furniture 75,000.00
Accumulated Depreciation on Office Equip. 5,000.00
Accounts Payable 75,000.00
Salaries Payable 30,000.00
VAT Payable 50,000.00
Notes Payable 550,000.00
ABC Enterprises Capital 1,020,000.00
ABC Enterprises Drawings 65,000.00
TOTAL 1,730,000.00
1,730,000.00
V. Evaluation
Illustration 2
4A’s Merchandising opened its business on January, 2020 to sell consumable goods
and merchandises. Below is the trial balance as of December 31,2020. You are required to
prepare Statement of Financial Position as of December 21,2020 in an account and report
form.
Note: There were payments for rent in advance amounting to P 10,000.00 and notes
payable of P 20,000.00 after the trial balance had been made.

4A’s Merchandising
Trial Balance
As of December 31, 2020

Debit Credit
Cash 250,000.00
Prepaid Rent 50,000.00
Building 700,000.00
Accounts Receivable 35,000.00
Supplies 150,000.00
Delivery Vehicle 100,000.00
Office Equipment 25,000.00
Fixtures and Furniture 25,000.00
Accumulated Depreciation:
Building 7,000.00
Office Equipment 3,000.00
Delivery Vehicle 10,000.00
Accounts Payable 25,000.00
Notes Payable 100,000.00
Salaries Payable 30,000.00
VAT Payable 50,000.00
Notes Payable 550,000.00
ABC Enterprises Capital 630,000.00
ABC Enterprises Drawings 75,000.00
TOTAL 1,405,000.00 1,405,000.00

VI. Assignment
Make an advance reading and comprehension about Statement of Comprehensive Income.

VII. Remarks
Instill the common elements of the Statement of Financial Position and make possible
application in daily life and in the near future.
VII. Reflection

Prepared by: Checked and Approved by:

Mrs. Eleine T. Alvarez

Teacher Applicant
Answer Key
Illustration 1
The trial balance of ABC Enterprises was prepared for the period of January 1
to January 31, 2021. As an accountant you are required to prepare a Statement of
Financial Position as of February 28, 2020 in an account format and report format.
Note: An advance payment made by a customer amounting to
P10,000.00 was not yet recorded.
ABC ENTERPRISES
Trial Balance
As of January 31, 2021

Debit Credit
Cash 240,000.00
Land 500,000.00
Building 500,000.00
Accounts Receivable 25,000.00
Supplies 150,000.00
Delivery Vehicle 125,000.00
Office Equipment 50,000.00
Fixtures and Furniture 75,000.00
Accumulated Depreciation on Office Equip. 5,000.00
Accounts Payable 75,000.00
Salaries Payable 30,000.00
VAT Payable 50,000.00
Notes Payable 550,000.00
ABC Enterprises Capital 1,020,000.00
ABC Enterprises Drawings 65,000.00
TOTAL 1,730,000.00
1,730,000.00

Illustration 2
4A’s Merchandising opened its business on January, 2020 to sell consumable goods
and merchandises. Below is the trial balance as of December 31,2020. You are required to
prepare Statement of Financial Position as of December 21,2020 in an account and report
form.
Note: There were payments for rent in advance amounting to P 10,000.00 and notes
payable of P 20,000.00 after the trial balance had been made.

4A’s Merchandising
Trial Balance
As of December 31, 2020
 Debit Credit
Cash 250,000.00
Prepaid Rent 50,000.00
Building 700,000.00
Accounts Receivable 35,000.00
Supplies 150,000.00
Delivery Vehicle 100,000.00
Office Equipment 25,000.00
Fixtures and Furniture 25,000.00
Accumulated Depreciation:
Building 7,000.00
Office Equipment 3,000.00
Delivery Vehicle 10,000.00
Accounts Payable 25,000.00
Notes Payable 100,000.00
Salaries Payable 30,000.00
VAT Payable 50,000.00
Notes Payable 550,000.00
ABC Enterprises Capital 630,000.00
ABC Enterprises Drawings 75,000.00
TOTAL 1,405,000.00 1,405,000.00