ABM 003/Fundamentals of

Accountancy,
PHINMA University of
Pangasinan Business and Management 2
Teacher/Facilitator Lesson Plan Grade Level 12
Day/Session #01

Materials:
Orienting the Students on Class Rules and
Worksheets (SAS), visual
Reviewing the Accounting aids/projector/manila paper
Cycle for a Sole
Proprietorship
References:
Learning Objectives
Basic Accounting for Senior High
At the end of the lesson, you should be able
school, Fundamentals of
to:
Accountancy, Business and
1. inculcate in your minds the importance
Management 1, 2017 Edition for
of class rules and proper decorum in ABM, Ballada,WL and Ballada S.
class

To help students recall the basic

concepts of the accounting cycle for a
sole proprietorship (merchandising
and service)

(Facilitator: Put up manila paper on which class rules are written. Distribute
worksheets for the day. Request the students to answer review/lesson preview
before copying the concept notes.)

(Teacher ask students to read the class rules –3 minutes)

Review/Lesson Preview (8 minutes)

TLAC Strategy PEPPER

Good day my dear accounting explorers! Did you have a great time during the
summer break? Before we start our journey, let us review the class rules. We follow
these rules and everybody will be happy, do you agree?

1. Smile upon entering the room.

2. Set your mobile phones on silent mode.
3. Come to class on time.
4. Wear your IDs and proper uniform.
5. Always pay attention to the teacher
and follow instructions.
6. Maintain classroom cleanliness and chair arrangement.
7. Listen when somebody is talking.
8. Raise hand and wait for recognition
when you have questions or
clarifications.
This document and the information thereon is the property of
PHINMA University of Pangasinan 1
ABM 003/Fundamentals of
PHINMA University of Pangasinan Accountancy, Business and
Management 2
Teacher/Facilitator Lesson Plan
Grade Level 12
Day/Session #01

Accounting Cycle

Direction: Identify the following terms being described in each number. Choose from
the terms listed on the left. Copy the terms on the blanks before each number. One
terminology may be used only once. There is one excess terminology in the list which
may not be used.

Journalizing ___________________ 1. The end product or output

of the entire accounting process.
Posting ___________________ 2. It is a listing of all account
titles used by the business together with their
respective balances, shows the net balance of an
Ledger account after considering both its debit and credit
sides.

Summarizing ___________________ 3. It is the process of

transferring the amount from the journal to the
ledger.
Trial Balance
___________________ 4. It is the book which is used to
classify and summarize transactions and to prepare
data for the preparation of basic financial
statements.
Financial
Statements ___________________ 5. It is the process of recording
economic transactions of a business in the books
of accounts.

Answer: 1. Financial Statements 2. Trial Balance 3. Posting

4. Ledger
5. Journalizing

Concept Notes (15 minutes)

(Facilitator tells students to copy the concept notes on their worksheet)
Strategy: CIRCULATE

THE ACCOUNTING CYCLE

The accounting cycle refers to a series of sequential steps or procedures
performed to complete the accounting process. This cycle is repeated each
accounting period. The first three steps in the

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PHINMA University of Pangasinan 2
 ABM 003/Fundamentals of
Accountancy,
PHINMA University of
Pangasinan Business and Management 2
Teacher/Facilitator Lesson Plan Grade Level 12
Day/Session #01

accounting cycle are accomplished during the period. The fourth to the ninth steps
generally occur at the end of the period. The last step is optional and occurs at the
beginning of the next period.

STEPS IN COMPLETING THE

ACCOUNTING CYCLE

Step 1 Identification of the events

Step 2 Transactions are recorded in the journal

Step 3 Journal entries are posted to the ledger

Step 4 Preparation of a Trial Balance

Step 5 Preparation of the Worksheet including

adjusting entries

Step 6 Preparation of the Financial Statements

Adjusting journal entries are journalized

Step 7 and
posted

Closing entries are journalized and

Step 8 posted

Preparation of a Post-closing Trial

Step 9 Balance

Step
10 Reversing journal entries are journalized
and posted

Developmental Activity (15 minutes)

(Facilitator instructs students to do the activity individually.
Teacher, if in the room, addresses questions and provide clarifications. ) Strategy: Own and Track
Learning the accounting cycle is very important for it will serve as your guide, step by
step, throughout the entire accounting process and with that, the preparation of financial
report would be easier. It may

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PHINMA University of Pangasinan 3
 ABM 003/Fundamentals of
Accountancy,
PHINMA University of
Pangasinan Business and Management 2
Teacher/Facilitator Lesson Plan Grade Level 12
Day/Session #01

be a long process but be patient for great rewards are waiting! Read the following
descriptions of each step in the accounting cycle.

THE ACCOUNTING CYCLE

1. Identification of the events Information about transactions or events are gathered

generally
through the source documents. Documents are evidences of transactions that
occurred. Examples of documents include but not limited to: official receipt,
invoice, check. Official receipt is issued when cash is received by the entity.
Invoice is issued when service or merchandise
is given to a customer or client. This is a commercial document that itemizes a
transaction between a buyer and a seller. If goods or services were purchased on
credit, this usually specifies the terms of the deal, and provide information on the
available methods of payment. Check is used as a substitute for cash.

Transactions are recorded in In this step, transactions are recorded in the

2. the journal journal.
Information from documents will be the bases in recording all transactions of the
business.
Transactions are initially recorded chronologically in the journal. Chronological
means, ‘in
order’. Transactions are recorded in the order of date of transaction.
Journal entries are posted to Posting is the process of transferring the
3. the Ledger debits and
credits from the journal to the ledger. The ledger is a collection of accounts that
shows the
changes made to each account as a result of past transactions, and their current
balances. After
posting all transactions to the ledger, the balances of each account can be
computed.
Preparation of a Trial Balance Trial Balance is a list of accounts with debit
4. or credit ledger
balances. This is prepared to check the equality of debits and credits in the
ledger. All account
balances are extracted from the ledger and arranged in the trial balance showing
debit balances in
the debit column and credit balances in the credit column. All the balances are
added and total
debits should equal total credits

5. Preparation of the Worksheet including adjusting entries This will help in

the preparation of financial statements. Worksheet is used to simplify the
adjusting and closing process, then it will be easier to transfer data from the
unadjusted trial balance to the financial statements An accounting worksheet is
 a tool used to help bookkeepers and accountants complete the accounting cycle
and prepare year-end reports.

6. Preparation of the Financial Statements Financial Statements contain financial

information
which are useful for decision – making The Financial Statements include
purposes. Statement
of Financial Position (SFP) Statement of Comprehensive Income(SCI) Statement of
Changes
in Equity (SCE) Statement of Cash Flows
(CFS)

This document and the information thereon is the property of

PHINMA University of Pangasinan 4
 ABM 003/Fundamentals of
Accountancy,
PHINMA University of
Pangasinan Business and Management 2
Teacher/Facilitator Lesson Plan Grade Level 12
Day/Session #01

7. Adjusting journal entries are To record deferrals, expiration of

journalized and posted deferrals
and other events from the worksheet. Adjusting entries are posted so that
balances in adjusted accounts are presented in the correct amounts. Adjusted
balances are shown in the adjusted trial balance.

8. Closing entries are journalized and posted Close Revenues and Expense
accounts to the Revenue and Expense Summary account. The balance of the
Revenue and expense Summary account is closed to Owner’s Capital account.
Owner’s Drawing Account is closed to Owner’s
Capital account.

9. Preparation of a Post-closing Trial Balance This step is done to check the equality of
debits and
credits after the closing entries. The post closing trial balance is a list of all
accounts and their balances after the closing entries have been journalized
and posted to the ledger. The post-closing trial balance contains only
balance sheet items such as assets, liabilities and ending capital

10. Reversing journal entries are journalized and posted Reversing entries are
prepared to simplify the recording of certain regular transactions in the next
accounting period. Reversing entries are made on the first day of the next
accounting period to remove certain adjusting entries made.

Guided Practice (15 minutes)

(Facilitator: Read the directions in front of the class. Make sure the students
understand how to answer every activity. Explain to the students that there is no
right or wrong answer on the second part of the guided practice.) TLAC Strategy:
AFFIRMATIVE CHECKING

You remember the different steps in the accounting cycle now? Let me check if you
can distinguish one step from another. Answer the following questions, you are
given 1 minute to answer each of the ten questions. Rearrange the jumbled letters
to find the answers..
1.These are gathered in the first step in the 1. STEMNOCUD
Accounting cycle. Examples of which are
official receipt, invoice, check , promissory
note. Answer: DOCUMENTS

2. What do you call the book where you 2. ROUJLAN

record the transactions in the 2nd step of
the accounting cycle. Answer: JOURNAL
 3. In this step, after transactions have been

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PHINMA University of Pangasinan 5
 ABM 003/Fundamentals of
Accountancy,
PHINMA University of
Pangasinan Business and Management 2
Teacher/Facilitator Lesson
Plan Grade Level 12
Day/Session #01

journalized and posted, you

prepare this 3. LIRAT CLANBAE
list of accounts with debit and
credit
balances. What do you call the list
of
balances that you prepare in Step
4 in
the accounting cycle. Rearrange Answer: TRIAL BALANCE
the
jumbled letters to find the answer.
4. In this step, financial reports are
made.
These are formal records of the
financial 4. IALINAFNC NTSATESTME
activities and position of a
business,
person, or other entity. What do
you call
these reports that are prepared
in Step 6. Rearrange the jumbled
letters. Answer: FINANCIAL STATEMENTS

Independent Practice (15 minutes)

(Facilitator: Instruct the students to answer the exercises below)

TLAC Strategy: OWN AND TRACK

Whew! That was tough huh? How many got 10 pts? Superb pair! How many got
8pts? Great team! Okay let us continue. I think you're ready to answer some more
challenging questions below, test yourself for an easy task. Learning is fun and
exciting! Let's do this!

Direction: Choose the letter that best corresponds to your answer. Write
the answer before the number.

1.
1. The accounting cycle begins by recording
2. 3. _____________ in the form of journal entries.
4. A. Business transactions C. Corporate minutes
B. Financial information D. Business contracts
5.
2. After a business transaction has occurred, journal entries are recorded in the:
6. A. General ledger C. Expense accounts
7.
8.
9.
B. General journal D. Balance sheets
3. Once
10. journal entries are recorded, these can be posted to:
11. A. General journals C. Income statements
B. Ledger accounts D. Expense reports
12.
13.
14.
1. This document and the information thereon is the
property of 2.
3. PHINMA University of Pangasinan 4. 6
15.
16.
17.
 18.
21. ABM 003/Fundamentals of
19. 20. Accountancy,
PHINMA University of
22.
Pangasinan 23. 24. Business and Management 2
25. Teacher/Facilitator Lesson
Plan 26. 27. Grade Level 12
28. 29. 30. Day/Session #01
31. 32. 33.
34.
35. 4. Which trial balance lists all the business accounts before year-end
adjusting
36. journal entries are made.
37.
38. A. Adjusted trial balance C. Post closing trial balance
39. B. Unadjusted trial balance D. Pre-closing trial balance
5. Entries that are made at the end of a period to correct accounts before
40. financial statements are prepared.
A.
41. Closing entries C. Reversing entries
B. Adjusting entries D. Journal entries
42.
43. Closure Activity (5 minutes)
44. (Facilitator: Instruct the students to answer the activities below.)
45.
46. TLAC Strategy: Right is Right
47.
48. Direction: I know you’re now having good thoughts on the concepts discussed
above. It’s time for you to answer the questions below. Give all the steps in the
Accounting Cycle in a sole proprietorship. Write the steps in order.

1. ________________________________________
49.
2. ________________________________________
50.
3. ________________________________________
51.
4. ________________________________________
52.
5. ________________________________________
53.
6. ________________________________________
54.
7. ________________________________________
55.
8. ________________________________________
56.
9. ________________________________________
57.
10.________________________________________
58.
59. Enrichment Activity (5 minutes)
60.
61. Strategy: STRETCH IT
62.
63. Wow! You’re doing great! Now you are ready for another activity.
Read the short description of accounting terminology or steps in the
accounting
64. cycle given below. Write the
65. word/words/accounting terminology being 66. the rectangle provided
described, inside at the bottom
67. of the activity below. Choose from the list of words given below:
68.
69.
70. This document and the information thereon is the
property of 71.
72. PHINMA University of Pangasinan 73. 7
 74.
77. ABM 003/Fundamentals of
75. 76. Accountancy,
PHINMA University of
78.
Pangasinan 79. 80. Business and Management 2
81. Teacher/Facilitator Lesson
Plan 82. 83. Grade Level 12
84. 85. 86. Day/Session #01
87. 88. 89.
90.
91. 92. 93. 94.
96. Financial 97. Adjusting
statement
95. Journal Entries 98. Check
100.Trial
99. Balance 101. 102. Capital Account
107.
103. 104. 105. 106.

108.
109.
110.
111.
112.
113.
114.
115.
116.
117.
118.
119.
120.
121.
122.
123.
5. SUGGESTED ANSWERS: 6. 7.
124.
8. 10. 4 125.
1. 9. Capital account .11. Check 126.
12. 13. Financial 14. 515. Reversin 127.
2. Statement . g entries 128.
16. 17. Adjusting 129.
3. Entries 18. 19. 130.
131.
132.
133.
134. Explore Activity
135.
136. You’re really doing great! Now, you can explore more on the concepts you’ve
learned. As you leave the school campus look around to check the different business
establishments near the school. There’s a bank, a restaurant, a grocery, a gasoline
station and many others. Choose one business and list down the different business
transactions that happen in the business.
137.
138. Suggested answer
140. _______________________________________________________________________________
139.
141. BANK: cash deposits, cash withdrawal, cash transfer, encash check,
purchase foreign curency, sell foreign
142.
143.
144.
145.
146.
 147.
148. This document and the information thereon is the
property of 149.
150. PHINMA University of Pangasinan 151. 8
154. ABM 003/Fundamentals of
152. 153. Accountancy,
155. PHINMA
University of
Pangasinan 156. 157. Business and Management 2
158. Teacher/Facilitator Lesson
Plan 159. 160. Grade Level 12
161. 162. 163. Day/Session #01
164. 165. 166.
167.
168. 169.
170. Assessment Tool
171.
172. Multiple choice. Choose the letter which best corresponds to the
correct answer. Write the answer before the number.
1. The
173.accounting cycle consists of which of the following number of specific steps?
a. 3
174.
b. 4
175.
c. 5
176.
d. 10
177.
2. The
178.collection of all of the accounts is kept together in the:
179. journal, only
a.
b. Ledger, only
180.
c. Trial balance, only.
181.
d. Both the journal and the ledger
3. The
182.post-closing trial balance will include only
183. Real accounts
a.
b. Nominal accounts.
184.
c. Balanced accounts
185.
d. Temporary accounts.
4. Reversing
186. entries of accrual adjustments are recorded on
a. The last day of each accounting period.
187.
b. Any day of the accounting period.
188.
c. The last day of each accounting month.
189.
d. The first day of each accounting period.
5. The
190.last step of the accounting cycle the period which is done at the end of the period is
a. Posting to the general journal.
191.
b. Journalizing.
192.
c. Identification and analysis of the transactions.
193.
d. Preparation of post closing balance.
194.
195.Write
196.
197. your answers here. Write the letters only.
198.
199.
200. 1.D
201.
202.
203. 2.B
204.
205.
206. 3.A
207.
208.
209. 4.D

210. This document and the information thereon is the property of

211. PHINMA University of Pangasinan
9
212. 5.D
213.