Republic of the Philippines

Department of Education
Region IV-A CALABARZON
Division of QUEZON
Gen. Nakar District II
PAARALANG SEKUNDARYA NG HENERAL NAKAR
Brgy. Anoling, Gen. Nakar 4338

LESSON EXEMPLAR IN
FOUNDAMENTALS OF ACCOUNTANCY & BUSINESS MANAGEMENT 2

School PSHN- MAIN Grade level 12

Fundamentals of Accountancy & Business
LESSON Teacher NANCY T. ATENTAR Learning Area
Management 2
EXEMPLAR Teaching Date FEBRUARY 18, 2021 Quarter SECOND
Teaching Time No. of Days 1

I- OBJECTIVES
A. Content Standards - Elements of the SFP
B. Performance Standards - Prepare an SFP
At the end of the lesson the students should be able to:
1. Identify the elements of the SFP and describe each of them
C. Learning Competencies or 2. Apply the accounting equation in solving accounting problems.
Objectives 3. . Prepare an SFP using the report form with proper classification of items as current and non-
current

D. Most Essential Learning Identify the elements of the SFP and describe each of them
Competencies (MELC)
1. Enabling Competencies
II- CONTENT The Statement of Financial Position ( SFP )
III- LEARNING RESOURCES
A. Reference/s FABM 2 Module 1
a. Teacher’s Guide Pages Teachers Guide pages 15-20
b. Learner’s Material Pages FABM 2 Module 1 pages 4 -18
c. Textbook Pages
d. Additional Materials from
Mobile Apps on Accounting
Learning Resources
B. List of Learning Resources
for Development and
 Engagement Activities
IV- PROCEDURES
A. INTRODUCTION Review the accounting equation. Ask them to differentiate the following:
• assets – resources owned by the company
• liabilities – debt owed by the company
• equity – residual interest of the owners

Discuss the account titles used for Asset Accounts. Define each account and differentiate one from the other.
Current Assets
• Cash is money on hand, or in banks, and other items considered as medium of exchange in business transactions.
• Accounts Receivable are amounts due from customers arising from credit sales or credit services.
• Notes Receivable are amounts due from clients supported by promissory notes.
• Inventories are assets held for resale
• Supplies are items purchased by an enterprise which are unused as of the reporting date.
• Prepaid Expenses are expenses paid in advance. They are assets at the time of payment and become expenses through
the passage of
time.
• Accrued Income is revenue earned but not yet collected
• Short term investments are the investments made by the company that are intended to be sold immediately
Non-Current Assets
• Property, Plant and Equipment are long-lived assets which have been acquired for use in operations.
• Long term Investments are the investments made by the company for long-term purposes
• Intangible Assets are assets without a physical substance. Examples include franchise and copyright.

Discuss the differences of Current vs. Non-Current Liabilities.

Current Liabilities. Liabilities that fall due (paid, recognized as revenue) within one year after year-end date. Examples
include Accounts
Payable, Utilities Payable and Unearned Income.
Non-current Assets are liabilities that do not fall due (paid, recognized as revenue) within one year after year-end date.
Examples include
Notes Payable, Loans Payable, Mortgage Payable, etc.
• Discuss the Account Titles used for Liability Accounts. Define each account and differentiate one from the other.
Current Liabilities
Accounts Payable are amounts due, or payable to, suppliers for goods purchased on account or for services received on
account.
Notes Payable are amounts due to third parties supported by promissory notes.
Accrued Expenses are expenses that are incurred but not yet paid (examples: salaries payable, taxes payable)l
Unearned Income is cash collected in advance; the liability is the services to be performed or goods to be delivered in the
future.
Non-Current Liabilities
Loans Payable
 Mortgage Payable
4. Owner’s Equity
• Discuss what Owner’s Equity is.
Owner’s Equity is the residual interest of the owner from the business. It can be derived by deducting liabilities from
assets.
• Discuss the Account Titles used for Equity Account. Define each account and differentiate one from the other.

Matching Type
Assets Accounts Receivable Intangible Assets
Liabilities Notes Receivable Property, Plant and Equipment
Owner’s Equity Rent Expense
Cash Prepaid Expense
____________ 1. It is the obligations of the company payable in money, goods or services.
____________ 2. These are non-current tangible assets.
____________ 3. These assets are identifiable, non-monetary assets without physical substance.
____________ 4. It is the claim of the owner also known as the capital.
____________ 5. It is the most liquid asset and is the medium of exchange for business transactions.
____________ 6. It is an expense for leased office space, equipment or assets rented from others.
____________ 7. Examples of this are cash, account receivable and prepaid expenses.
____________ 8. It is a written promise from the customer to pay his receivables on a certain future date.
ANSWERS: 1. Liabilities 2. Property, Plant and Equipment 3. Intangible Assets 4. Owner’s Equity 5. Cash
6. Rent Expense 7. Assets 8. Notes Receivable
B. DEVELOPMENT - What I know

Instruction: Fill in the blank with the correct answer (Critical Thinking, Communication and
Collaboration)
_________ 1. The book of original entry.
_________ 2. Assets are equal to liabilities and owner’s equity.
_________ 3. Users of accounting information is mostly communicated
__________4. Are what the company owns.
__________5. Are what the company owed.
_________ 6. Inflows of cash because of services rendered.
_________ 7. Assets from cash spent because of sales of goods.
_________ 8. The second accounting cycle.
_________ 9. Is called the book of the final entry.
________ 10.is the next cycle after journalizing.

Whats In ?
 I want you to identify all the Assets, Liabilities and Owner’s Equity of your family. You can ask your
family members to help you identify the elements of the financial position.
Independent Activity 1.1: My Family’s Financial Posit (Critical - Thinking,
Creativity, Character and Collaboration)
Instructions: Cut out pictures from magazines or you can take a picture or draw all your family’s assets, I
want you to identify all the liabilities, and the owner’s equity account. Make a reflection of what your
family need to do in order to make the Financial Position more attractive.

Remember the Accounting Equation?

Assets is equals to Liability and Owner’s Equity Account

1. Angels Tutorial Center has an asset amounting to P 200,000, Liability is P 75,000. How much is the
owner’s equity account?

2. Assets of TMAM is P15,000 and Total Equity is P10,000, how much is total Liabilities?

3. Assets is equal to P350,000, Owner’s equity is 250,000, How much is Equity?

4. Sure Fresh Company’s total liabilities amounted P30,000. Total equity
had an ending balance of P50,000. How much is total assets?
5. Current Assets is P50,000, Non- Current Assets is P150,000.00, Current Liabilities is P10,000 and
Non- Current Liabilities is P40,000, How much is the Equity of the company?

Look at the answer key pro

C. ENGAGEMENT
D. ASSIMILATION
What I Have Learned
Statement of Financial position is one of the Financial reports submitted by the company to the users of
information such as banks and other financial institutions. They are called permanent because of their
existence is continuous and the balance is forwarded to the next accounting period. The elements of
financial position are assets, liabilities and owner’s equity account. The kinds of Assets are Current
and Non-Current while the kinds of liabilities are Current and Long-Term Liabilities. Under current
assets are cash, receivables, Inventories and prepaid expenses. Non-current assets include Land,
Building Equipment and furniture and their accumulated depreciation. While for Current Liabilities
includes Accounts Payables and Notes Payable and for the Long-Term Liabi lities
 Assessment
Instructions: Compute for the missing amount of the account titles taken from the SPF of independent
company Critical Thinking and Communication)

_______1. Assets are Php 27,000 and owner's equity is Php15,000, liabilities?
_______2. At the end of the first month of operations for TMAM Transportation, the
business had the following accounts: Accounts Receivable, Php2,800; Prepaid Insurance, Php700;
Equipment, Php85,500 and Cash, Php75,550. On the same date, TMAM owed the following creditors:
Mely’s Supply Company, Php8,000; Mark’s Equipment, Php19,500. The current assets for the Juana’s
Delivery Service are
_______3. At the end of the first month of operations for Mary Anne’s, the business
had the following accounts: Accounts Receivable, Php4,800; Prepaid Insurance, Php15,000; Equipment,
Php68,200 and Cash, Php40,650. On the same date, Juana owed the following creditors: Bonny Supply
Company, Php42,000 (due in 6 months); Maria’s Equipment, Php90,500 (due after 2 years). Current
liability is
_______4. If during the year total assets increase by Php85,000 and total liabilities decrease by
Php15,000, by how much did owner's equity increase/decrease?
------------5.Using the following accounts Cash – 15,000 Loans Payable – 77,500
Accounts Receivable – 6,300, Inventory- 7,400 Supplies – 4,200Equipment – 52,000 Owner’s equity –
98,000 Accounts Payable – 22,400 Building – 113,000,
How much is the total assets and Total Liabilities and Owner’s Equity?

What I Need to Reflect (Character)

V- REFLECTION You must buy only the important and the basic needs of the family or buy assets that has economic
I understand that benefit in the future, when you don’t have cash do not borrow money just to acquire it. However, if you
have more than enough for your family, why not think of donating something for the less fortunate
specifically this pandemic situation

Prepared by:

NANCY T. ATENTAR
SHS Teacher III