Detailed Lesson Plan

I. Objectives

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

1 Categorize the elements in a business transaction.

2 Apply the rules of double-entry bookkeeping system.

II. Contents

Topic Reference(s) Materials

Double-Entry Bookkeeping Fundamentals of PowerPoint presentation,
Accountancy (Business and hand-outs
Management I) 13th Edition
by Win Ballada

III. Procedure
A. Preliminary Activities

Teachers Activity Students Activity

Good Morning Class... Good Morning Sir.

Say present (Checking of Attendance) (Students will tell whos absent for the
day)

B.Review
Teachers Activity Students Activity
It is the art of recording, classifying, and
Based on your past lessons, what is the summarizing in a significant manner and in
definition of accounting? terms of money, transactions and events
which are, in part at least of financial
character, and interpreting the results
thereof.

Very good!

What are the elements of accounting? The elements of accounting are asset,
liabilities and capital. We also have
expenses and revenues or income
Very good!
 C. Motivation
Teachers Activity Students Activity
Class, I am going to show you a short Yes Sir!
video clip. What you are going to do is to
watch carefully.
I want you to imagine that you have a (a representative of the class will write their
business as a class. Write down at least answers on the board)
one account for each elements of the
accounting

D. Presentation of the Lesson

Teachers Activity Students Activity
Class based on the definition of Yes Sir!
accounting, it has a process. But before
we go in depth in the accounting cycle,
let us first analyze your answers and how
we record them using the double-entry
bookkeeping.
Sample Students answer:

1. Asset- Furniture
2. Liabilities Accounts Payable
3. Capital- S, Capital
4. Expenses- Electricity
5. Revenue- Professional Fee

Teachers Activity Students Activity

First, for the asset, who wants to answer? Sir. (Selected student will stand
up and answer the question of
the teacher).

In buying furniture, what have you received and Sir, I received a furniture and to
what have you have given up? have the furniture we have to pay
for this, so I have given up cash
or money

Correct.
The debit pertains to the things that the
business received. So, the journal entry for
purchase of furniture is Debit Furniture. Credit
pertains to the things that the business given up
or entrusted to. The entry for the said transaction
is Credit Cash. If it is a purchase on account or
credit the entry is Debit Furniture and Credit
Accounts payable.
We have tackled about liabilities; we will now
proceed to capital.
Sir, we received cash and we
What have you noticed are entrusted to the investment.
The Debit is Cash and Credit S,
Capital.
Very good.

In terms of expenses, what we have received is Sir, the entry is Debit Expense
the right to use the electricity and we have given and Credit Cash.
up the money to pay for the expenses we have
incurred. What is the entry?
Who wants to answer for Revenue? Sir. Revenue increases our
assets such as cash. Therefore,
the debit is cash and credit is
Professional Fee.

Very good observation! Now, let me tell you

about double-entry bookkeeping
Credit and debit are the two fundamental aspects of
every financial transaction in the double-entry
bookkeeping system. A double-entry bookkeeping
system is a set of rules for recording financial
information in a financial accounting system in which
every transaction or event changes at least two
different nominal ledger accounts.
In financial accounting or bookkeeping, "Dr" (Debit)
indicates the left side of a ledger account and "Cr"
(Credit) indicates the right. The rule that total debits
equal total credits applies when all accounts are
totalled. An increase (+) to an asset account is a
debit. An increase (+) to a liability account is a credit.
Conversely, a decrease (-) to an asset account is a
credit. A decrease (-) to a liability account is a debit.
Debits increase asset and expense accounts and
decrease liability, income, and equity accounts
Credits increase liability, income, and equity accounts
and decrease asset and expense accountsIn short
debits pertains to the things you have received and
credits are the things you have given up or entrusted
to.
Class, do you have any question?
None, Sir.
Get 1 whole sheet of paper and we will have a short
quiz.

E. Generalization
1. What have you learned about the double-entry bookkeeping?
IV. Evaluation:
Indicate the debit and credit account of the given transaction.
 Transactions Debit Credit
1. Paid Mayors permit

2. Additional
investment
3. Payment of salaries
4. Bought supplies on
account
5. Sale of product

Choose the best answer.

1. A business is started with the injection of 10,000 in cash. In which account is the
credit entry made?
Cash
Capital

2. A business purchases equipment cash. In which account is the debit entry made?
Equipment
Supplies

3.Insurance of 2,000 is paid in advance. In which account is the debit entry made?
Insurance prepayments
Insurance expense

4. A business purchases supplies on account for 2,000. On which account is the

credit entry made?
Supplies
Accounts payable

5. A business collects fees from a customer in cash for work done. In which account
is the credit entry made?
Accounts Receivable
Fee Income

6. A business owner withdraws cash of 1,000 from the business. In which account is
the debit entry made?
Drawings account
Cash

7. Net wages of 24,000 are paid to employees. Which account is debited?

Cash
Net wages control
8. A business invoices customers for fees, giving credit of 30 days. Which account is
the debit entry posted to?
Accounts receivable
Accounts payable

9. A telephone bill is received by the business for 500. Which account is the debit
entry posted to?
Telephone expense
Accounts payable

10. A deposit of 1,500 is received from a customer for work to be started next month.
Which account is credited?
Deferred income
Fee income

V. Assignment:
Bring different kinds of source documents. (Receipt, sales invoice, electric bill
etc.)

Prepared by:
Ricardo Q. Gonzales Jr.