Republic of the Philippines

DEPARTMENT OF EDUCATION
Region VII Central Visayas
DIVISION OF CEBU
Learning Area: Detailed Lesson Plan (DLP)

DLP No.: Grade Level: Quarter: Duration: Date:

37 FABM1 11 2nd 120 MINUTES October 2, 2019

The learners prepare adjusting entries CODE

Learning Competency/ies:
ABM_FABM11-IVad-33-34

Key Concepts / Understandings to be

Developed The Accounting Cycle of a Service Business-Preparing an Adjusting Entry
Adapted Cognitive
Domain Process Dimensions OBJECTIVES:
(D.O. No. 8, s. 2015)

Knowledge Remembering Reproduce an adjusting entry

The fact or condition of knowing
something with familiarity gained
through experience or association
Understanding

Applying
Generate an adjusting entry
Skills Analyzing
The ability and capacity acquired
through deliberate, systematic, and sustained
effort to smoothly and adaptively carryout
complex activities or the ability, coming from
one's knowledge, practice, aptitude, etc., to Evaluating
do something

Creating

Receiving
Attitude Phenomena Displays open-mindedness

Values Valuing Love for truth

2. Content Business Transactions and Their Analysis

3. Learning Resources FABM 1 textbook, hand-outs, board work

4. Procedures
4.1 Introductory Activity Realia. Show the learners a pencil and ask them to make a “hugot” line using the object
(5 minutes) pencil.
(The pencil has two ends. One end is for writing and the other is for erasure in case of
error).

4.2 Activity
Case for Group Discussion:
(15 minutes) Assume Company A has an outstanding receivable from various customers in the
amount of P80,000. At the end of accounting period, it is estimated that 5% of this is
doubtful of collection.
1. What is the amount of receivable is to be recorded?
2. Is the uncollectible account needs to be recorded? Why?

4.3 Analysis What are the transactions that require adjusting entry? Why do we need to have adjusting
(5 minutes) entries?

4.4 Abstraction
DISCUSSION
(10 minutes) Adjusting entries are journal entries which are to be recorded in the General Journal and
are usually prepared at the end of the accounting period of one year following the
preparation of a trial balance.

The purpose of adjusting entry is to bring records/balances of accounts up-dated and to

properly match revenues and expenses during the period. It is a primary objective to
present a correct financial statement which is truly “test meters” of the financial condition
of the business as of a particular date and the results of operation at the end of
accounting period.

Types of Adjusting Entries:

1. Accruals
2. Deferrals
3. Provision Of Uncollectible Accounts
4. Provision of Depreciation
5. Adjustment of inventory
6. Correction of erroneous journal entry
4.5 Application Board work.Transactions which requires adjusting entries:
(15 minutes) Accruals:
A building owned by Metro Cebu Hotel partly rented by PNB for P50 000 per month
payable every 5th day of the following month. The rental for the month of Dec. 2016 will
be paid on January 2017.

Deferrals:
On October 1, 2016, Cordon Realty Company collected P12 000 from a tenant
representing an advance collection from building rental for one year. The accounting
period ends on Dec. 31, 2016.

4.6 Assessment Ask the learners to reconstruct the wrong entries prepared, the correct
(20 minutes) entries that should be made, and the would-be correcting entries:
1. Payment of rental expense in the amount of P30 000 was erroneously
recorded at P20 000:
Wrong Entry: Correct Entry: Correcting Entry:
____________ ____________ ___________
____________ ____________ ___________

2. Of the recorded interest income amount of P5 000, P3 000 was

unearned at the end of the period:
Wrong Entry: Correct Entry: Correcting Entry:
____________ ____________ ___________
Tests ____________ ____________ ___________

3. 1% of the outstanding receivable account is estimated to be doubtful

of collections.
Wrong Entry: Correct Entry: Correcting Entry:
____________ ____________ ___________
____________ ____________ ___________

4.7 Assignment
Enhancing / improving the day’s lesson

4.8 Concluding Activity “When an engineer commits mistake, a building may collapse. When a lawyer commits
(3 minutes) mistake, his client may go to jail. When a doctor commits mistake, his patient may go 6 ft
below the ground. But when an accountant commits mistake, he must learn how make an
adjusting entry.” - Anonymous

5. Remarks
6. Reflections
A. No. of learners who earned 80% in the C. Did the remedial lessons work? No. of learners who have caught up with the
evaluation. lesson.

B. No. of learners who require additional

D. No. of learners who continue to require remediation.
activities for remediation.

E. Which of my learning strategies worked

well? Why did these work?

F. What difficulties did I encounter which

my principal or supervisor can help me solve?

G. What innovation or localized materials

did I use/discover which I wish to share with
other teachers?

Prepared by:
Name: JUNAR DEE School:
Position/ Designation: T3 Division:
Contact Number: Email address: