INDIVIDUAL ACTIVITY :

Group Activity : (10 minutes))

1. Divide class into 3

2. Distribute the task card to each group.

3. Answer the following questions in the

task card

4. Answer the following questions in the

task card.

5. Discuss the assigned task for each group.

6. Ask volunteer to present the output of each group.

Objectives:

1. Perform operations involving

simple cases with the use of
Accounting Equation.
.
Objectives:

1. Identify the elements of the Statement

of Comprehensive Income and des –
cribe each of these items for a service
and Merchandising Business.

2. Prepare an SCI for a service business

using the single-step approach.
What is Accounting Equation?
Accounting equation is the foundation
of double entry accounting. It displays
that all assets are either financed by
borrowing money or paying with the
money of the company’s shareholders.
Thus, the accounting equation is :

A=L+C
ASSETS = LIABILITIES + OWNER’S EQUITY
The balance sheet is a
complex display total of this
equation, showing that the
total assets of a company are
equal to the total of liabilities
and shareholder equity.
EXAMPLE 1 :

How much is the owner’s equity if she bought

furniture in credit for 15, 000?

Assuming that Beverly has a capital of 80,000.

COMPUTER SET = 10,0000

Solution:

Using equation, A = OE + L
(OE) 80,000 + (L) 15,000 = (Cash) 70,000+
Computer Set) 10,000 + (Furniture) 15,000

Answer : 80,000

“Buying in credit means the amount is

recorded as liability while simultaneusly
adding the acquisition to the asset side of the
equation and therefore not affecting the
owner’s equity. “
EXAMPLE 2 :

How much is the total cash left if she paid the

furniture for 5,000?

Assuming that Beverly has a capital of 80,000.

COMPUTER SET = 10,0000

Solution:

Using equation, A = OE + L
(OE) 80,000 + (L) 10,000 = (Cash less
furniture payments) 65,000+ Computer Set)
10,000 + (Furniture) 15,000

Answer : 65,000
“Note that after paying 5,000 in cash, the
right side of the equation would be lesser by
the same amount. To equate both, deduct
liability by 5,000 since the furniture was
previously bought on credit“
GROUP ACTIVITY: (20 mins)

1.Divide class into 2 groups.

2. Distribute task card.
3.Choose group leader to present the output.

Group 1 : Concept check

from the given activity the students will
tell whether The Assets, Liabilities &
Owners' Equity Increases or Decreases.
Group 2:The students will refer to the activity
given and describe transaction.
PRESENTATION OF OUTPUT

RUBRICS:

Accuracy of Answer = 3 pts.

Delivery of Output = 2 pts
Total = 5 pts.
THANK
YOU!!!!!