FUNDAMENTALS OF

ACCOUNTANCY, BUSINESS
AND MANAGEMENT 1
REVIEW

This type of business offers

professionals skills, advice and
consultation.

a. Service Business
b. Merchandising Business
c. Manufacturing Business
Answer

a. Service Business

REVIEW

This type of business is also known

as “buy and sell”.

a. Service Business
b. Merchandising Business
c. Manufacturing Business
Answer

a. Merchandising
Business
REVIEW

This type of business buys raw

materials and uses them in making
new product.

a. Service Business
b. Merchandising Business
c. Manufacturing Business
Answer

a. Manufacturing
Business
 define assets, liabilities and owner’s equity
 define assets, liabilities and owner’s equity

 Illustrate the accounting equation

 define assets, liabilities and owner’s equity

 Illustrate the accounting equation

 solve problems involving accounting equation

 MAJOR ACCOUNTS IN ACCOUNTING
 


Assets are the company's resources or
properties owned by the company.
 MAJOR ACCOUNTS IN ACCOUNTING
 


Assets are the company's resources or properties
owned by the company.


Liabilities are the company's debts or obligations
to be settled in the future.
 MAJOR ACCOUNTS IN ACCOUNTING
 


Assets are the company's resources or
properties owned by the company.


Liabilities are the company's debts or
obligations to be settled in the future.


Owner's equity are the total capital the
owners have invested in the business
GRAPHIC ORGANIZER

is a visual and graphic display

that depicts the relationships
between facts, terms, and
ideas within a learning task
Hierarchy chart
Activity:

complete the illustration with

using “hierarchy chart”.
 OWNER’S
ASSETS LIABILITIES
EQUITY
 The word equation comes from the word
equal. For any equation, one side always
equals another.

 The equation shows that Assets are equal to

the sum of (Liabilities) and Owner’s
Equity(owner’s investment)
 OWNER’S
ASSETS LIABILITIES
EQUITY
The equation means that out of the
properties of the business, the
business will pay first the debts to
outsiders or creditors and any
amount remaining thereafter should
go to the owner.
Example

OWNER’S
ASSETS LIABILITIES
EQUITY

? P100,000 P500,000
Example

OWNER’S
ASSETS LIABILITIES
EQUITY

P200,000 P160,000 ?
Example

OWNER’S
ASSETS LIABILITIES
EQUITY

? 450,000 (100,000)
4. Supplies=Php.45,000
Accounts payable= Php15,000

5. Cash=Php.500,000
Loan Payable=Php400,000
Example

Suppose you bought a Computer

Equipment for P50,000, borrow
P40,000 from others, and pay
the rest yourself. Try to illustrate
the accounting equation.
 Activity:
 I will group you into two groups. Perform
necessary operation with the use of
Accounting Equation. Present your output on
the board
GROUP 1
  Assets = Liabilities + Owner’s
Equity

1. 500,000   340,000   ?
2. ?   110,000   590,000
3. ?   650,000   (50,000)
 GROUP 2
 
1. Furniture and fixtures=Php.70,000
Accounts payable= Php35,000
 
2. Equipment=Php.200,000
Owner’s equity=Php100,000
 
3. Office Supplies=Php.100,000
Accounts payable=Php100,000
 How blessed am I?
Please check the appropriate box relevant to you, leave blank if not.
 
Column A   Column B
   
Eat 3 times a day Lonely
   
Healthy body Unwell
   
With friends More enemy
   
Living with parents bullied
   
With computer Depress
   
With cellphone Unhappy
   
Can buy new clothes Can’t buy new clothes
   
Have special talent No talent
   
With savings account No savings account
   
Sleep comfortably Stress
To get the result:
10points for each check in Column A =

10points for each check in Column B=

Total points in Column A – Total Points in Column B x

100%
What have you learned in
the accounting equation?
Assessment
 Individual activity
 Using the given data accomplish the accounting equation by applying necessary
operations
  Assets   Liabilities   Owner’s
Equity
a. 760,000   360,000   ?
b. 860,000   ?   592,000
c. ?   108,000   760,000
d. 626,600   376,240   ?
e. ?   800,000   (100,000)