Detailed Lesson Plan in Fundamentals of Accountancy, Business and Management 1

I. Objectives:

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

a. Illustrate the accounting equation (ABM_FABM11- IIIb-c-17)

b. Perform operations involving simple cases with the use of accounting equation (ABM_FABM11-IIIb-c-18)

II. Subject Matter

a. Topic: The accounting equation (First Quarter)
b. Materials: module, power point, Kahoot application
c. Reference: Fundamentals of Accountancy, Business and Management CG and LM by Mr. Wally Aranas,
CPA

III. Procedure

Teacher’s Activity Students’ Activity

A. Preliminary Activities

1. Opening Prayer
Let us start our class with a prayer. Miss Xyra, please : Dear Lord and Father of all, Thank you for today…..
lead us the opening prayer.

2. Greetings
Good morning, class! : Good morning, Ma’am!

3. Attendance Checking and other Classroom

Management
Let’s check your attendance. Are there absents today? : None, Ma’am.

That’s good!

Now, please ready your modules in FABM and make : (The students will ready their modules and make
your tables clean so that we can already start. their tables clean.)

4.Review
As our review of the previous topic, please click
the link: mentimeter.com
If you have opened the mentimeter, please give the
different concepts about the topic: The different : (The students open the link and submit answers.)
concepts and principles in accounting
: Going Concern Concept, Business Entity Concept,
Periodicity or Time Period Concept, Monetary Unit
Concept, Objectivity Principle, Cost Principle, Accrual
Principle, Revenue Recognition Principle, Matching
Principle, Consistency Principle, Materiality,
Very good! All your answers are correct. Adequate Disclosure Principle
B. Motivation
Now, you will be grouped in 2 using our breakout : Yes, Ma’am!
rooms and will answer the given problem using this
equation: Asset= Liabilities + Owner’s Equity.
Asset Liabilities Owner’s Equity
A 600,000 150,000 _________
B 940,000 ___________ 410,000
C ______ 173,700 299,300 : (The students do the activity and go back to the main
D 383,500 ________ 236,500 room after 5 minutes.)
E 624,000 237,000 _______

After 5 minutes, we will solve the problem, and check

if your answers are correct.

You may start now.

First Group, how much is the amount of Owner’s : P450,000 ma’am. (Asset) 600,000 – (Liability) 150,000 =
equity in Letter A and how di you get your answer. 450,000

Very Good!

(The teacher calls the other groups.)

C. Presentation and Discussion of the Lesson

All your answers in the group activity are correct. You
already have an idea what accounting equation is,
and now we will discuss the different types of
accounts involve in our accounting equation.

Before I discuss our topic today, please read the a. : Illustrate the accounting equation
objectives and everyone should remember them (ABM_FABM11- IIIb-c-17)
because we should accomplish them as we go on b. Perform operations involving simple cases with
the lesson. Yes, Miss Cassandra. the use of accounting equation (ABM_FABM11-
IIIb-c-18)
Thank you, Miss Cassandra!

In a double entry system, for every debit, there must

be a credit, and vice versa. This leads to the basic
equation in accounting. The relationship of assets,
liabilities and owner’s equity of a business enterprise
is expressed in the accounting equation:
ASSETS = LIABILITIES + OWNER’S EQUITY

The equation shows that the ownership of the assets

of the business is divided between the rights of the
creditors and the rights of the owners of the business.
The creditors have first claim on the assets of the : Civil Rights, Respectable and Bias-free Mass Media,
business. Equality before the law

The accounting equation could be stated in another

way to emphasize the residual interest of the owner
over the assets of the business at the point of : (The students listen to the discussion)
liquidation.
ASSETS – LIABILITIES = OWNER’S EQUITY
To include the income and expense as temporary
accounts together with drawing, the accounting
equation is expanded and restated as follows:

ASSETS = LIABILITIES + OWNER’S EQUITY (- Drawing +

Income – Expense)

Every time a transaction occurs, the elements of the

accounting change, however, the basic equality
remains.

Before giving you an illustration, let us first define the

elements of the accounting equation: Asset, Liability
and Owner’s Equity.

Miss Toni, what is Asset? : These are resources controlled by the enterprises as a
result of past transactions or events and from which
Very Good! future economic benefits are expected to flow to the
enterprise.

Can you give an example of asset? Yes, Mr. Roi? : cash and petty cash fund ma’am.
Do you have any question?

Very Good!

(The teacher continues the discussion.)

D. Application
After gaining knowledge about accounting equation
and its elements, open your FABM1 module on page
37. You are given 8 minutes to answer.

Determination of Total Assets

Using the data below, select the asset accounts and
determine the total assets.

Accounts Payable 50,000 Cash 150,000

Accounts Receivable 130,000 Land 550,000
Building 1,550,000 Rent Revenue 40,000
Lagayan, Capital 400,000 Equipment 375,000
Determination of Total Liabilities
Using the data below, select the liability accounts and
determine the total liabilities.

Accounts Receivable 55,000 Rent Income 90,000

Notes Payable 160,000 Rent Expense 6,000
Land 30,000 Salaries Expense 30,000
Wages Payable 19,000
Accounts Payable 45,000

Let’s check your answers. Who wants to solve the

first problem?

Yes, Miss Chelsea. : Accounts Receivable 130,000

Cash 150,000
Land 550,000
Building 1,550,000
Equipment 375,000
2,755,000

Great! Thank you, Miss Chelsea.

(The teacher calls other student to solve the problem)

E. Generalization
This time, please type your answer in our chat box,

The Accounting Equation

Asset Liabilities Owner’s Equity

A ______ 150,000 450,000
B 940,000 530,000 _______
C 473,000 _______ 299,300
D _______ 147,000 236,500
E 624,000 237,000 _______

You have 5 minutes to answer. You may now solve A. 600,000 B. 410,000 C. 173,700 D. 383,500 E.
and type your answer. 387,000

Your answers are correct! That’s great!

 IV. Evaluation

Activity 12: The Accounting Equation

a. A tailoring company has assets of P600,000 and owner’s equity of P450,000.

b. A real estate agency has liabilities of P530,000 and owner’s equity of P410,000.
c. A plumbing contractor has assets of P473,000 and liabilities of P173,700.
d. An aerobatics company has liabilities of P147,000 and owner’s equity of P236,500.
e. A movie theater has assets of P624,000 and liabilities of P237,000.
Required: Identify at given element in balance sheet and compute the amount of the missing basic elements of
balance sheet.

V. Assignment
The students will answer on the learning module the exercise on Elements of Accounting Equation.

Prepared by: Christian Mae G. Vino