Senior High School

ENTREPRENEURSHIP
Quarter 2 – Module 4
Performing Bookkeeping Tasks
 What I Need to Know

This module was designed and written with you in mind. It is here to help you master
the performance of bookkeeping tasks. The scope of this module permits it to be used
in many different learning situations. The language used recognizes the diverse
vocabulary level of students. The lessons are arranged to follow the standard sequence
of the course. But the order in which you read them can be changed to correspond
with the textbook you are now using.

After going through this module, you are expected to:

1. define and identify the roles of a bookkeeper
2. learn the tasks performed by a bookkeeper;
3. determine the basics of bookkeeping;
4. know the importance of a bookkeeper; and
5. understand the benefits of having a good bookkeeping system for a business

What I Know

Hello, how are you? I hope you are doing good. Before anything else, let’s have a pre-test to
check your prior knowledge about the topic. If you got a perfect score, you can skip this lesson
and proceed to the next module, but if you didn’t get a perfect score, you don’t have to worry
because this module will help and guide you to understand the topic. Are you ready? Let’s
start.

Choose the letter of the best answer. Write the chosen letter on a separate sheet of
paper.

1. Record keeping is the orderly and __________ practice of storing business

records.
a. Corporate
b. Legal
c. Financial
d. Disciplined
2. Which of the following should be done before purchasing business software?
a. Create an information techonoly (IT) department
b. Get a business credit card
c. Evaluate your business needs
d. Consult with the Internal Revenue Service (IRS)

3. When creating a record keeping system, it’s a good idea to___________

a. Wait until enough information is available to get started
b. Start a simple and refine later
c. Get sophisticated system to anticipate future needs
d. Start after one year of operations.
 4. Which of the following are reasons for keeping good records? Select all that
apply.
a. Business detail tracking
b. Planning
c. Legal compliance
d. Tax preparation
e. All of the above
5. For which type of business is record keeping a good practice?
a. One person
b. Partnership
c. Corporation
d. Cooperative
6. What is file record maintenance?
a. refers to the periodic updating of files
b. refers to recording office conversations regarding maintenance
c. refers to the physical cleaning of records
d. the ability of a record to be duplicated
7. On Friday afternoon while checking the financial records, the bookkeeper of
Lopez drug store noticed a deficiency between the amount of cash and the
records of sales for that day, She immediately investigate the discrepancy and
found out something , on what functions of accounting do the given situation
falls under?
a. Protecting properties of the business
b. Communicating results to various parties in connected with the business
c. Communicating results to various parties in connected with the
business
d. Keeping systematic record of business transactions.
8. Why should enterpreneurs keep their records?
a. monitor the progress of the business
b. identify the sources of income
c. keep track of the deductible expenses
d. all of the above
9. This statement can help you in dealing with your bank or creditors and it is
also known as the profit and loss statement.
a. balance sheet
b. income statement
c. checking account
d. time deposit

10. This is one of the reasons of keeping business records wherein record
are showing whether the business is improving, which item are selling or
what changes you need to make
a. identify the sources of income
b. keep track of your deductible expenses
c. monitor progress of your business
d. prepare financial statement.

II. TRUE OR FALSE

11. In accounting, business transactions should be separated to personal

transactions.
12. Conducting monthly meetings to evaluate the performance of the company is
considered a factor in attaining the company’s goal.
 13. In order to have a successful business, you need to concentrate more on your
income and ignore your expenses.
14. Good records allow you to identify all of your assets, expenses, income and
liabilities. This lets you see the strength and weaknesses of your business
which enable you to make better financial decisions.
15. Expenses must be recorded every month, in order to lessen the paper works
in recording your business transactions.

Lesson

2 Performing Key Bookkeeping Tasks

Congratulations for finishing the pre-test! It’s okay that you didn’t get a perfect score,
as I’ve said this module will help and guide you to understand better the topic.
Before me proceed to the next topic the Performing key of Bookkeeping tasks Let’s
have a review of your previous lesson.

What’s In

Let’s have a simple activity. Choose the letter of the best answer.
1. It is a written document that describes in detail how a business is going to
achieve its goals.
a. Business Certificates
b. Business Plan
c. Enterprise
d. Company
2. The one who places capital into a project or business with the intent of making
a profit from the initial placing of capital.
a. Entrepreneur
b. Manager
c. Investor
d. Customer
3. Is an individual or businesses that purcahses another company’s good or
services.
a. Borrower
b. Customer
c. Investor
d. Manager

Now, you already know the importance of the business implementation. It is one of
the basics of entrepreneurship. We will now proceed to our lesson Performing key
Bookkeeping Tasks. But wait, why do we need to study Performing key Bookkeeping
Tasks? You will discover the answers in our discussion.
Remember, one of the four exits in SHS is the entrepreneurship (negosyo), that’s
why, you should be knowledgeable and be equipped if ever you want to start a
business. Let’s now begin our journey in learning this subject by having a simple
activity. Brace yourself and be ready to enter the world of business.
 Notes to the Teacher
The teacher must consider the prerequisite skills
needed in the development of the competency
including the schema or background knowledge which
may reinforce learning. This module will help the
learners bridge the gap of learning to attain the
mastery of the lesson in its spiral progression.

What’s New

Welcome to the world of the Entrepreneurs! This activity will serve as

motivation before we discuss the lesson Performing Key Bookkeeping Tasks.

Activity: Do the Bookkeeping of Mae’s Business

Manage Mae’s Business

You are employed by Mae to keep the books of her RTW business. Here are the
transactions she made for the week:

Monday: Bought ten dresses for

P150 each in credit.
Tuesday: Sold three dresses for
P250 each. Two paid in cash,
one in credit.
Friday: Paid P300 for the dresses
bought in credit.

Saturday: Collected P250 from

the dress sold in credit.

How much is Mae’s accounts payable as of Monday? ____________________.

How much is her sales as of Tuesday? __________________________________.

How much is her accounts payable balance on Friday? _________________.

How much is her accounts receivable as of Saturday? ___________________.

How many dresses were sold as of Saturday? ____________________________.

 What is It

Now that you are done with the activity, this is the discussion part.

Mae is very happy to have you record her daily transactions! She can track the
performance of her RTW business with your help.

You have answered the questions by recording the daily transactions. The systematic
method of recording and processing financial transactions is called bookkeeping. Now
that we have define the meaning of bookkeeping we will proceed with the meaning of
Bookkeeper.

What is a Bookkeeper?
A bookkeeper is an employee of a small to mid-size entity that performs the processing
and recording of the day-to-day financial operations of a business.

After the bookkeeper records transactions, the accountant or the business owner will
review the bookkeeper’s work and make the required adjusting entries before the
company's financial statements are finalized.

The method of using debit and credit to record a transaction is called the double-
entry bookkeeping. This is invented by the Father of Modern Accounting Luca Pacioli
in the fourteenth century. This is the bookkeeping system used up to this day.

To understand the double-bookkeeping system, here is an example below:

You purchased a brand new P30,000 laptop for your recently-opened meat shop
business.

Under double-entry accounting, you would make two entries: you trade one asset
(cash) for another asset (laptop). So you have to adjust both the cash and laptop
accounts in your books.

Account Debit Credit

Cash - P30,000
Laptops P30,000 -

Under double-entry accounting, every debit always has an equal corresponding credit,
which keeps the following equation in balance. Always keep this in mind:

Assets = Liabilities + Equity

Accountants call this the accounting equation, and it’s the foundation of double-entry
bookkeeping. If at any point this equation is out of balance, that means the
bookkeeper has made a mistake somewhere along the way.

In this example, only the assets side of the equation is affected: your assets
(cash) decrease by P30,000 and your laptop assets increase by P30,000, and the
equation remains balanced.

Let’s try another example. Let’s say you just bought P20,000 of meat inventory on
credit.
In this case, the asset that has increased in value is your Inventory. Because you
bought the inventory on credit, your accounts payable account also increases by
P20,000.

Account DDebit Credit

Inventory P20,000 -
Accounts Payable - P20,000

Let’s take a look at the accounting equation again:

Assets = Liabilities + Equity

In this case, assets (+P20,000 in inventory) and liabilities (+P20,000) are both affected.
Both sides of the equation increase by P20,000, and the equation remains balanced.

Last example: how do you record accounts receivable under this accounting method?

When you send an invoice to a client after finishing a sale of P5,000 that costs P4,000,
you would “debit” accounts receivable and “credit” the sales account.

Account Debit Credit

Accounts Receivable P5,000 -
Sales - P5,000

Then, record the cost of the sale which is P4,000 by a “debit” to purchases and “credit”
the inventory.

Account Debit Credit

Purchases P4,000 -
Inventory - P4,000

After the client pays you, you would then debit your cash account, and credit
accounts receivable.

Account Debit Credit

Cash P5,000 -
Accounts Receivable - P5,000

What’s More

Did you enjoy the mini-lesson of the module? To better understand it, let’s have
another activity. Enjoy!

Activity 1. Fill in the boxes

Complete the words described below:
1. The Father of Modern Accounting
2. Employed to perform recording and processing of financial transactions of a
business

3. The bookkeeping system that records a debit and credit per transaction

4. Assets = Liabilities + __________

5. Reviews the recorded financial transactions before finalizing the statements

6. Foundation of double-entry bookkeeping

7. Also known as the Profit and loss Statement

8. Credited account when you purchase inventory to a supplier in account.

9. Debited account when you receive money as payment from customers.

10. The systematic method of recording and processing financial transactions.

What I Have Learned

How’s the activity? Did you enjoy it? I hope so. This part is the generalization
which contains the summary of what you learned. I want you to accomplish the
activity and be honest.

Fill in the spaces with appropriate answers based from the discussion about
performing bookkeeping tasks.

KEY POINTS

1. A ________________ is an employee of a small to mid-size entity that performs the

processing and recording of the day-to-day financial operations of a business.
2. An accountant or _________________ reviews the work of a bookkeeper.
3. The Italian Luca Pacioli is known as the Father of __________________________.
4. The accounting equation is _______________________________.
5. ___________ are composed of tangibles and intangibles. These include cash,
accounts receivable, inventory, land, and property, plant and equipment.
6. ___________________ include tangibles and intangibles. These include accounts
payable, notes payable and interest payable.
7. ____________ include the owner’s capital, retained earnings and owner’s
withdrawals.
8. ______________________________ is the bookkeeping system that records a debit
and a credit per transaction.
 9. If you purchase equipment on credit, you record the transaction by a debit to
equipment and credit to ________________.
10. If you collect cash from customers’ credit, you record a debit to cash and credit
to ________________________.

What I Can Do

Now it’s your time to shine! It’s time to apply all the inputs that you learned
from this module. It’s application time!
Activity: Mae’s Bookkeeper
With your help, Mae’s RTW business became more
successful. More customers visit her shop. She doubles
her sales and makes more income than before!
She needs your help to monitor the day-to-day
transactions and record them to her books.
Help Mae monitor and record the transactions for the
week.
Monday: Bought 20 dresses at P500 each in account.
Tuesday: Borrowed cash loan from the bank for P9,000.
Paid half of the dresses bought in account yesterday, Monday.
Wednesday: Sold 15 dresses for P750 each in cash.
Thursday: Bought store supplies for P5,000 in account.
Friday: Sold five dresses for P800 each in account. Paid the remaining balance of the
dresses bought in account last Monday.
Saturday: Paid in full the store supplies bought in account.
Sunday: Collected cash for the five dresses sold in account.

Date Description Debit Credit

Congratulations! You are now ready for assessment!

 Assessment

Before the presentation of the mini-lesson, you had your pre-test right? Now, this will
serve as your post-test. This will test you if you were able to understand the lesson
well. Good Luck!
Multiple Choice. Choose the letter of the best answer. Write the chosen letter on a
separate sheet of paper.

1. Which is not an asset?

a. cash
b. inventory
c. loans payable
d. vehicle
2. Who is the Father of Modern Accounting?
a. Luca Paciolli
b. Lucca Pacioli
c. Luca Pacioli
d. Luca Pacilli
3. The bookkeeping system used up to today is called ____________.
a. Single-bookkeeping
b. Debit-credit bookkeeping
c. Double-line bookkeeping
d. Double-entry bookkeeping
4. If you purchased a land in account,
a. Liabilities increase, assets decrease
b. Liabilities decrease, assets increase
c. No effect
d. Assets increase, liabilities increase
5. The accounting equation is defined as
a. Assets = Liabilities - Equity
b. Assets = Liabilities + Equity
c. Assets + Liabilities = Equity
d. Assets + Liabilities - Equity
6. What is the nationality of the Father of Modern Accounting?
a. Italian
b. Russian
c. French
d. British
7. Which is an equity account?
a. Loan payable
b. Inventory
c. Petty cash
d. Owner’s drawings

8. Which is a liability account?

a. Loan payable
b. Inventory
c. Petty cash
d. Owner’s drawings
9. A current asset is defined as any asset which can reasonably be expected to be
sold, consumed, or exhausted through the normal operations of a business
 within the current fiscal year or operating cycle. Which of the following is a
current asset?
a. Land
b. Inventory
c. Vehicle
d. Machinery
10. Noncurrent liabilities, also known as long-term liabilities, are obligations listed
on the balance sheet not due for more than a year. Which of the following is a
noncurrent liability?
a. Accounts payable
b. Tax payable
c. Notes payable due for 18 months
d. Interest payable
11. You purchased inventory worth P5,000, paying P2,500 cash and the other half
on account. Which of the following is correct?
a. Liabilities increase by P5,000
b. Cash decrease by P5,000
c. Inventory increase by P2,500
d. Cash decrease by P2,500
12. You borrowed P50,000 cash from the bank to finance your startup business.
Which of the following is correct?
a. Cash increase by P50,000
b. Equity increase by P50,000
c. There is no effect for liabilities
d. Cash decrease by P50,000
13. You sold land for P50,000, receiving payment of P35,000 cash and the balance
in account. Which of the following is correct?
a. Cash increase by P35,000
b. Equity increase by P15,000
c. Accounts payable increase by P15,000
d. Liabilities increase by P15,000
14. Anita bought supplies in account for P8,000. Which of the following is
incorrect?
a. Accounts payable increase by P8,000
b. No effect on cash
c. No effect on liabilities
d. Supplies increase by P8,000
15. Bea invests on a new machinery worth P80,000, paying P50,000 in cash and
balance in account. Which of the following is incorrect?
a. Accounts payable increase by P30,000
b. Accounts receivable increase by P30,000
c. Cash decrease by P50,000
d. Machinery increase by P80,000

Additional Activities

Last but not the least, this part will serve as a reinforcement on what have you learned
from the topic.

After working as a bookkeeper for Mae’s RTW business, she refers you to another
client and her good friend, Crystal. She owns a gadgets shop and needs your help to
keep her company books updated.

Here are the January transactions for her business:

Jan 1 Bought new machineries worth P80,000 in account.

Jan 5 Purchased P50,000 worth of computer parts inventory, paying P20,000

cash the balance in account.

Jan 9 Paid P5,000 cash for interest from a bank loan.

Jan 17 Sold two machineries for a total of P9,000 in cash.

Jan 19 Sold P20,000 worth of computer parts for P35,000 in cash.

Jan 25 Purchased new machinery for P10,000 in account.

Jan 29 Sold P10,000 worth of computer parts for P20,000 in account.

Date Description Debit Credit

How much is the balance of her accounts payable? ______________________

How much is her total sales for January? _______________________________
How much interest did she pay? ________________________________________
How much is the balance of her accounts receivable? ___________________
How much is the balance of her machinery account? _____________________
Additional Activi ties
Date Description Debit Credit
Jan 1 Machinery P80,000
Accounts payable P80,000
Jan 5 Inventory P50,000
Cash P20,000
Accounts payable P30,000
Jan 9 Interest expense P5,000
Cash P5,000
Jan 17 Cash P9,000
Machinery P9,000
Jan 19 Cash P35,000
Sales P35,000
Purchases P20,000
Inventory P20,000
Jan 25 Machinery P10,000
Accounts payable P10,000
Jan 29 Accounts receivable P20,000
Sales P20,000
Purchases P10,000
Inventory P10,000
1. Accounts payable balance = P120,000
2. Sales for January = P55,000
3. Interest paid = P5,000
4. Accounts receivable balance = P20,000
5. Machinery balance = P81,000
Answer Key
 What I Have Lear ned Assessment What’s New What I Know
1. Bookkeeper 1. C 1. P1,500 1. D
2. Business Owner 2. C 2. P750 2. C
3. Modern Accounting 3. D 3. P1,200 3. B
4. Assets = Liabilities + 4. D 4. 0 4. D
Equity
5. B 5. 3 dresses 5. C
5. Assets
6. A What’s More 6. B
6. Liabilities
7. D Activity - 1 7. D
7. Equity
8. A 1. Luca Pacioli 8. D
8. Double-entry bookkeeping
9. B 2. Bookkeeper 9. B
9. Accounts payable
10 . C 3. Double-entry 10. C
10. Accounts Receivable bookkeeping
11. D 11. True
4. Equity
12. A 12. True
5. Accountant
13. A 13. False
6. Accounting equation
14. C 14. True
7. Income Statement
15. B 15. False
8. Accounts Payable
9. Cash
10. Bookkeeping
What I Can Do
Date Description Debit Credit
Monday Inventory P10,000
Accounts payable P10,000
Tuesday Cash P9,000
Bank loan payable P9,000
Accounts payable P5,000
Cash P5,000
Wednesday Cash P11,250
Sales P11,250
Purchases P7,500
Inventory P7,500
Thursday Store supplies P5,000
Accounts payable P5,000
Friday Accounts receivable P4,000
Sales P4,000
Accounts payable P5,000
Cash P5,000
Saturday Accounts payable P5,000
Cash P5,000
Sunday Cash P4,000
Accounts receivable P4,000
 Development Team of the Module

Writer: MARIBETH G. DANGANAN – T-II Diosdado Macapagal Memorial High School

Editor: JANE P. VALENCIA, EdD – EPS – Mathematics
Reviewer: JANE P. VALENCIA, EdD – EPS – Mathematics

Illustrator:
Layout Artist:
Language Reviewer:

Management Team

ZENIA G. MOSTOLES, EdD, CESO V, Schools Division Superintendent

LEONARDO C. CANLAS, EdD, CESE. Asst. Schools Division Superintendent
ROWENA T. QUIAMBAO, CESE, Asst. Schools Division Superintendent
CELIA R. LACANLALE, PhD, CID Chief
JANE P. VALENCIA, EdD, Education Program Supervisor, Mathematics
JUNE E. CUNANAN, Education Program Supervisor/ Language Editor
RUBY M. JIMENEZ, PhD., Education Program Supervisor, LRMDS