Semi-Detailed Lesson Plan

Fundamentals of Accounting, Business, and Management 1

I. Learning Objectives

At the end of the lesson the learners should be able to:

a. illustrate the accounting equation
b. appreciate the importance of accounting equation in business field
c. solve problems by applying the accounting equation

II. Subject Matter

Topic: The Accounting Equation

References: Wild, J (2009). Principles of Accounting 19 th ed. McGraw Hill Publishing
Haddock, M., Price, J., & Farina, M. (2012). College Accounting: A contemporary
Approach, 2nd ed. New York McGraw-Hill/Irvin
Valencia, E.G & Roxas, G.F (2010). Basic Accounting 3rd ed., Mandaluyong City,
Philippines: Valencia Educational Supply
Instructional Materials: Laptop, Projector, Whiteboard pen, Whiteboard
Values Integration: Analytic, Logical Reasoning, Appreciation

III. Learning Procedure

A. Preliminary Activities
1. Prayer
2. Greetings
3. Classroom management
4. Checking of Attendance
5. Review of Past Lesson/Presentation of New Lesson

B. Motivation
Connect to a real-life situation.
1. Place the accounting equation at the board
2. Ask the learners for 5 examples of business transactions
3. Prove that every transaction the accounting equation should always be balance.

C. Activity
Divide the class into four groups. Each will be given a transaction and try to apply
accounting equation. The teacher will check the work of each group.

D. Abstraction
Give a lecture. Illustrate how each transaction affects the accounting equation.

E. Application
Concept Check. Use the following question set for practice.
For each transaction, tell whether the assets, liabilities and equity will increase (I),
decrease (D) or is not affected (NE).
A L E
1. The owner invests personal cash in the business _ _ _
2. The owner withdraws business assets for personal use _ _ _
3. The company receives cash from bank loan _ _ _
4. The company repays the bank that had lent money _ _ _
5. The company purchases equipment with its cash _ _ _
6. The owner contributes her personal truck to the business _ _ _
7. The company purchases supplies on credit _ _ _
8. The company purchases land by paying half in cash and
signing on credit _ _ _
9. The owner withdraws cash for personal use _ _ _
 10. The company repays the suppliers. _ _ _

IV. Assessment

Use the activity below. Instead of giving the transaction, the activity below is in reverse. Let
them describe the given transaction.
Describe each transaction.
Date ASSETS LIABILITIES OWNER’S
EQUITY
Cash Supplies Equipment
Bal 60,000 7,500 300,000 75,000 292,500
1 150,000 150,000
2 (20,000) 20,000
3 (112,500) (112,500)
4 5,000 5,000
5 (15,000) (15,000)
6 (53,000) (53,000)
7 (8,000) (8,000)

V. Assignment

Jerome Garcia started a new business and completed these transactions during August.
Aug. 1 Garcia invested Php48,000 cash in the business.
1 Rented office space and paid Php800 cash for the August rent.
2 Purchased exploration equipment for Php22,000 by paying Php12,000 cash and
agreeing to pay the balance in 3 months
5 Purchased office supplied by paying Php1,500 cash
6 Completed exploration works and immediately collected Php420 cash for the work
8 Purchased Php1,350 of office equipment on credit
15 Completed exploration works on credit in the amount of Php8,000
18 Purchased Php700 worth of supplies on credit
20 Paid cash for the office equipment purchased on August 8
24 Billed a client Php2,400 for work completed; the balance is due in 30 days
28 Received Php5,000 cash for the work completed on August 15
30 Paid the assistant’s salary of Php1,000 cash for this month
30 Paid Php3,500 cash for this month’s utility bill
30 Garcia withdrew Php1,100 cash from the business for personal use

Required:
1. Arrange the following asset, liability, and equity titles in a table: Cash; Accounts Receivable;
Office Supplies; Office Equipment; Exploration Equipment; Accounts Payable; Jerome Garcia,
Capital; Jerome Garcia, withdrawals; Revenues; and Expenses
2. Use additions and subtractions to show the effects of each transaction on the accounts in the
accounting equation. Show new balances after each transaction.

Prepared by:
Jocenee Cañete-Atup