STUDENT LEARNING GUIDE

Fundamentals of Accountancy, Business and Math 11

Third Trimester, S.Y 2020-2021
 DON BOSCO TECHNICAL COLLEGE
M A N D A L U Y O N G
Fundamentals of Accountancy,
Business & Math Gr 11
Basic Education Department
SY 2020-2021 Student Learning Guide

Overview of Topics and Competencies

Week Topics/Values Competencies

1 Introduction to Accounting ● define accounting

● describe the nature of accounting
● narrate the history/origin of accounting

2 Users of Accounting ● define external users and gives

examples
● define internal users and give examples

3 Accounting Concepts and ● explain the varied accounting concepts

Principles and principles
● solve exercises on accounting principles
as applied in various cases

4 Accounting Equation ● illustrate the accounting equation

( A=L+EO) ● perform operations involving simple
cases with the use of accounting
equation
Written Work #1 - Week 1-3

5 Five Major Accounts - Assets, ● discuss the five major accounts

Liabilities, Expense, Revenue ● prepare a Chart of Accounts
& Owner’s Equity

7 Journalizing ● analyze common business transactions

( Rule of Debits & Credits ) using the rules of debit and credit
● solve simple problems and exercises in
the analyses of business transaction
Written Work #2 - Week 4&5

8 Accounting Cycle of a Service ● describes the nature of transactions in a

Business - Journalizing service business
● records transactions of a service
business in the general journal

9 Accounting Cycle of a Service ● posts transactions in the ledger

Business - T-account Posting ● prepares a trial balance

Fundamentals of Accountancy, Business and Math Gr 11

Third Trimester, SY 2020-2021 | 2
 DON BOSCO TECHNICAL COLLEGE
M A N D A L U Y O N G
Fundamentals of Accountancy,
Business & Math Gr 11
Basic Education Department
SY 2020-2021 Student Learning Guide

10 Accounting Cycle of a Service

Business - Trial Balance ● prepares a trial balance

11 Accounting Cycle of a Service ● prepares to adjust entries

Business - Adjusting Entries ● complete the accounting cycle

Lesson 1 Learning Objectives

Journalizing Students will be able to…

( Rule of Debits &
Credits ) 1. to describe the nature of a service business
and give examples.
2. identify the different types of business
documents.
3. prepare journal entries of business
transactions in a service business.
4. solve problems and exercises in the analysis
of business transactions.

Activity 1/ Engage

Ask the learners to identify the activity in the pictures.

Fundamentals of Accountancy, Business and Math Gr 11

Third Trimester, SY 2020-2021 | 3
 DON BOSCO TECHNICAL COLLEGE
M A N D A L U Y O N G
Fundamentals of Accountancy,
Business & Math Gr 11
Basic Education Department
SY 2020-2021 Student Learning Guide

Guide Questions:

1. Ask the learners to give examples of service businesses in their community. Possible
Answers:
• barbershop
• offices of practicing doctors, lawyers, and other professionals
• repairs of TV and other electrical equipment
• auto repair shop
• laundry shop
• dressmaker

Activity 2/ Explore

Discuss the nature of a service business

A service business provides a needed service for a fee. In general, service businesses
actually have no physical product sold to clients. Their services are designed to
facilitate the work of clients and in return are paid. Service businesses include salons
or barber shops, laundry services, car repairs, medical centers, and services of
professionals like lawyers and doctors. The revenue of a service business is usually
realized once the service has been substantially completed.

In small service businesses, all transactions are on cash payments.

This means sales are collected immediately while most expenses are paid outright in
the form of cash, The typical financial transactions recorded for a service company
include collecting a deposit from the customer, providing the service, and receiving
payment.

Activity 3/ Explain

Discuss the accounting cycle of a service business

Step 1 - Transactions and/or Events

Identification and measurement of external transactions and internal events. At this
stage, the
documents used by the business are analyzed whether it has financial impact or
effect. Recall the rule that only financial transactions are recorded and that the amount
can be measured. These two conditions must exist in order that a particular
transaction is recognized or recorded. As defined, financial transactions are those
activities that change the value of an asset, liability or an equity.
Examples of financial transactions:
• Receipt of cash from a client as advance payment to repair a computer. In
this case, the asset will increase. At the same time, the advances from the

Fundamentals of Accountancy, Business and Math Gr 11

Third Trimester, SY 2020-2021 | 4
 DON BOSCO TECHNICAL COLLEGE
M A N D A L U Y O N G
Fundamentals of Accountancy,
Business & Math Gr 11
Basic Education Department
SY 2020-2021 Student Learning Guide

client (liability) will also increase. The advances from the client is a liability
because the business has the obligation to render future service to the client.
• Payment of the electric bill is a financial transaction. This will decrease the
cash (asset) and reduce the income of the business at the same time.

Step 2 - Preparation of Journal Entries (journalization)

When to Debit and when to Credit: An increase in an asset account is called a debit
and an increase in a liability or equity account is called a credit. Likewise, if we
decrease an asset account we credit that account. On the other side of the equation, if
we decrease a liability or equity account we debit those accounts.
Rules on Debits and Credits
• The name of the account to be debited is always listed first. The debited
account is listed on the first line with the amount in the left side of the register.
• The credited account is listed on the second line and is usually indented. The
credited amount is recorded on the right side of the register.
• The total amount of debit should always equal the total amount of credit.

ACCOUNT CODE ACCOUNT TITLE

Statement of Financial Position Accounts
1000 Cash
1200 Accounts Receivable
1201 Allowance for Bad Debts
1300 Inventory
1400 Prepaid Expenses
1500 Supplies
1600 Office Equipment
1601 Accum Deprn - Off Eqpt
1650 Store Equipment
1651 Accum Deprn - Store Eqpt
1680 Transportation Equipment
1681 Accum Deprn - Trans Eqpt
1750 Building
1751 Accum Deprn - Building
1800 Land
1900 Intangible Assets
2000 Accounts Payable
2100 Notes Payable
2200 Accrued Expenses
2201 Salaries Payable
2202 Utilities Payable
2300 Income Taxes Payable
3000 Owner’s, Capital
3100 Owner’s, Withdrawal

Fundamentals of Accountancy, Business and Math Gr 11

Third Trimester, SY 2020-2021 | 5
 DON BOSCO TECHNICAL COLLEGE
M A N D A L U Y O N G
Fundamentals of Accountancy,
Business & Math Gr 11
Basic Education Department
SY 2020-2021 Student Learning Guide

ACCOUNT CODE ACCOUNT TITLE

Income Statement Accounts
4000 Service Revenue
4100 Sales
4101 Sales Returns and Allowances
4102 Sales Discounts
4150 Interest Income
5000 Cost of Sales
5100 Purchases
5101 Purchase Returns & Allowances
5102 Purchase Discounts
5103 Freight In
6100 Salaries Expense
6150 Supplies Expense
6200 Utilities Expense
6220 Communication Expense
6250 Travel Expense
6300 Rental Expense
6350 Fuel Expenses
6400 Advertising Expense
6410 Delivery Expense
6450 Commission Expense
6500 Depreciation Expense
6600 Taxes and Licenses
6700 Interest Expense

Step 3 – Posting
The summary (in specialized journals) or individual transactions (in the general journal) are
then posted from the journals to the general ledger (and subsidiary ledgers). Nothing should
ever get posted to the ledgers without first being entered in a journal.

Step 4 - Unadjusted Trial Balance

At the end of an accounting period (for example, one month or one year) the working trial
balance is prepared. This involves copying each account name and account balance to a
worksheet (working trial balance). The resulting first two columns of the worksheet are called
the unadjusted trial balance. In the preparation of the unadjusted trial balance, the balances in
all the general ledgers at the end of the reporting date are forwarded to the appropriate
column

Fundamentals of Accountancy, Business and Math Gr 11

Third Trimester, SY 2020-2021 | 6
 DON BOSCO TECHNICAL COLLEGE
M A N D A L U Y O N G
Fundamentals of Accountancy,
Business & Math Gr 11
Basic Education Department
SY 2020-2021 Student Learning Guide

Activity5// Evaluate (Asynchronous)

Link for the Activity:

https://docs.google.com/document/d/1VQZJqKg7WcCLrl7bmik50zO3A4itPXSsEfWENz
p6veM/edit

Resources

Fundamentals of Accountancy, Business and Management 1 by Solita Frias ( Phoenix )

Fundamentals of Accountancy, Business and Math Gr 11
Third Trimester, SY 2020-2021 | 7
DON BOSCO TECHNICAL COLLEGE
M A N D A L U Y O N G
Fundamentals of Accountancy,
Business & Math Gr 11
Basic Education Department
SY 2020-2021 Student Learning Guide

Fundamentals of Accountancy, Business and Math Gr 11

Third Trimester, SY 2020-2021 | 8