SELF LEARNING MODULE

ENTREPRENEURSHIP 11
SECOND QUARTER – WEEK 6

The Business Records

Entrepreneurship 11

ENTREPRENEURSHIP 11
Quarter 2 – Module 3:
The Business Records

Department of Education│R4A│Division of Calamba City

Office Address: DepEd Bldg., City Hall Compound, Brgy. Real, Calamba City
Landline: 049–554 9830 loc. 14
Email Address: [email protected]
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Dear Parents,
The Schools Division of Calamba City is one with every Filipino family in coping with the demands
of our modern times.
The current situation we are experiencing right now has caused immediate changes in our lives.
Above anything else, our priority is your child’s health and safety, but this does not prevent us from making
education happen. Even if your child will miss regular schooling this year, we want to assure you that no
student will be left behind, because learning is possible anytime, anywhere.
Thus, we present to you this Self Learning Module (SLM) to help your child meet the most
essential learning competencies in every subject and grade level, and will serve as your child’s major
learning tool, whether your child opts for online, modular or blended learning modality. The learning
activities in this SLM are arranged to lead your child to think critically, act skillfully, and reflect deeply on
each lesson and practice into real life skills. Most importantly, this SLM promotes self-paced learning as
your child can always review the least understood lessons as often as he/she pleases.
Since the students will be seeing their teachers less than before and will be staying with you at
home more often, then we wish to request one thing from you: please encourage your child not to stop
learning. Consider your child like our hero and fellow Calambeño Jose Rizal who, despite his studies
overseas, would always recall the most significant learning experience he had – his lessons with his
parents.
Thank you very much in being one with us! Together, let us envision that, by the end of this school
year, we will see your child as one responsible young person with a heart and mind for humanity, for
nature, for the country, and for God.
Dear Learner,
Welcome to a brand-new year of learning! We hope you are doing fine, although we understand
that you already miss going to school and spending fun, learning moments with your teacher in front and
your classmates just right beside you. Unfortunately, we have to wait a bit further for the situation to go
back to normal mode. But one thing is for sure—the opportunity for your learning cannot wait any longer.
By this time, you have already chosen your learning modality. Is your access to internet strong
enough for online learning mode, or does your lack of resources make you prefer modular learning? Well,
you do not have to worry as to what your case may be, because even if you cannot come to school, SDO
Calamba City is bringing the school right in your homes.
This is our gift to you: The Learning Packets that will help you meet the knowledge and skills
necessary for every subject in your grade level. Your teachers have worked hard in designing these
Learning Packets, and we guarantee that through this, everyday will be a wonderful learning experience
for you.
Please take time to read and do the activities in these Self Learning Module (SLM) as if you are
reporting in school. Set a regular study schedule for you as much as possible, but keep in mind that these
SLM will enable you to learn at your own pace. If you do not understand a particular lesson, the SLM
would not mind you flipping back the pages over and over again for review. Also, remember to keep in
touch with your teachers. Send them a message through your online sessions or write them a note as
you do your modular activities. With this, we wish you good luck in your studies, and we hope that you
will remain happy and enthusiastic in learning!

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: [email protected]
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I What I need to know?

This module will teach you how properly record business transactions and reflect them in the
accounting books of the business. You will do accounting entries and prepare basic financial statements
such as income statement, a balance sheet, and a cash flow statement. Accounting business transactions
are mandatory and should never be left out of the equation, whether the business is flourishing or losing
money. You will be taught on the logical reasons that business records are very important. You were able
to perform actual bookkeeping tasks and prepare basic financial statements on your own. This may end
your academic journey of entrepreneurship but your quest for the real entrepreneurship is just beginning.

The module focuses: Simple Bookkeeping and Financial Statements

You are expected to:
1. discuss simple bookkeeping procedures,
2. identify the books of accounts used in business, and
3. prepare simple bookkeeping and financial statements.

I What is new?
Activity 1: A receipt that matters!

Situation: The business performs various activities everyday starting from the day it is created until it
ceases operation. The volume of transactions of the buisness depends on its size, complexity, and scope.
For example, large businesses like SM Store conduct thousands of transactions daily, while a small
convenience store here in Calamba may only have a few transactions throughout the day. Assuming that
you are the owner of a business,
Guide Questions:
1. On the last day of Dec 2019, can you recall the business transactions on the first day of June of the
same year?
__________________________________________________________________________________
2. Why issuing a receipts important?
__________________________________________________________________________________

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: [email protected]
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3. What will you do to easily track specific ones on a previous date?

__________________________________________________________________________________

D What I know?
Pretest: Will be available via google classroom.

Lesson 3 The Business Records

D What is in?
Activity 2: The Books that Counts.

Find the 10 words which can be included when doing a simple bookkeeping.

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: [email protected]
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D What is it?
This lesson introduces the simple bookkeeping procedures that will help future entrepreneurs to record
the different business transactions of their small proposed entrepreneurial ventures.
Before an entrepreneur can prepare accounting entries and financial statements, he or she should
appreciate first why these are needed in the first place. The truth is that from the day an entrepreneur
chose to engage in a business, all his or her transactions are related to the business should be recorded.
The entrepreneur must understand that his or her personal transactions must be separate and distinct
from his or her business transactions. This is where the basic accounting concept of “separate entry”
comes in, where the business is a separate and distinct personality from the business owner.
Everyone in business must keep records. Keeping good records is very important to your business. Good
records will help you do the following:
(a) Monitor the progress of your business.
(b) Prepare your financial statements.
(c) Identify sources of your income.
(d) Keep track of your deductible expenses.
(e) Keep track of your basis in property.
(f) Prepare your tax returns.
(g) Support items reported on your tax returns.
(1) Accounting is a system of recording information about a business, which is mainly numerical and
helps different people make decisions relating to that business.
(2) Accounting Cycle is a series of steps that businesses take to track transactions and consolidate
financial information over a specific accounting period (month, quarter, year). The result of the accounting
cycle is the production of accurate financial statements for that period and preparedness for the next
accounting period. See figure 1.

Figure 1: Accounting Cycle

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: [email protected]
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(3) Accounting Phases. There are four basic phases of accounting: recording, classifying,
summarizing, and interpreting financial data.
(3.A) Recording. Basic phase of accounting that is also known as bookkeeping. In this phase,
all financial transactions are recorded in a systematical and chronological manner in the appropriate
books or databases.
(4) Transaction refers to the events where there are exchanges of values that are measurable in one
common denominator. In this case, the Philippine peso. To put it differently, a business transaction that
is not quantifiable and measurable in monetary value is not given accounting recognition and is not
recorded in the books of the business.
All business transactions are recorded in the books of accounts and not in an ordinary bond paper or
yellow pad. The two books of accounts are the journal and the ledger. The journal is the book of original
entry, while the ledger is the book of the final entry.
(5) General Journal is the book of original entry. It is where all business transactions are chronological
recorded for the first time. It is also called a book of original entries. Most of the two-column journals
available in various school and office supplies stores are in the form of loose leaf or columnar pad. It is
advisable to use the latter. See figure 2.

Figure 2: Guidelines in Using the General Journal

(6) Account Titles. The recording of business transactions involves the use of account titles. The account
title provides the description of the type and nature of the business transactions. The account titles are
grouped into five categories referred to as the accounting elements. The three major elements of
accounting are: (a) Assets, (b) Liabilities, and (c) Capital and the other two are (d) Income and (e)
Expenses.
Accounting Elements Account Titles Normal Balances
(a) Asset (1) Cash Debit
(2) Accounts receivable
(3) Notes receivable
(4) Supplies on hand

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: [email protected]
 6

(5) Unused factory supplies

(6) Inventory
(a) Raw materials
(b) Work-in-process
(c) Finished goods
(7) Equipment
(8) Furniture and fixtures
(b) Liability (1) Accounts payable Credit
(2) Notes payable
(3) Utilities payable
(4) Salaries payable
(c) Capital (1) Capital Credit
(2) Drawing
(d) Income (1) Service Income Credit
(2) Rental Income
(3) Sales
(e) Expenses (1) Salaries and Wages Debit
(2) Store supplies expense
(3) Taxes and licenses
(4) Utilities expense
(5) Traveling expense

A chart of account is a list of account titles adopted by a business to organize the recording process
and segregate accounting values into assets, liabilities, capital, income, and expense.
(7) Business Documents. All entries appearing in the general journal are fully supported with business
documents.
(8) Bookkeeping refers to the recording of business transactions in the books of the business. It involves
chronological writing or recording of business transactions and events in the books of accounts for the
first time.
In recording business transactions through accounting entries, the entrepreneur or accountant must know
the concept of debit (value received) and credit (value parted with) by applying the double-entry
bookkeeping. The double-entry bookkeeping requires a combination of debit and credit for every
accounting entry and to adhere to the balance sheet and income statement equations.
(9) The journey entry appears to have two debit values, while credit has only one value or vice versa, this
type of journal entry is called a compound entry. In case there is only one debit and one credit, the entry

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: [email protected]
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is called a simple journal entry. In writing the credit, the account title is indented. For the debit value,
the account title is written almost touching the line separating the date and the Particular columns.
(10) To appreciate actual record keeping and bookkeeping.
2019, December 1. Jerry Toredo opened her small laundry shop with a legal trade name approved
by DTI as Modern Laundry Center. The business has been registered as a non-VAT taxpayer.
Jenny rented a pace for the business at Rizal Street, Calamba City. The rental fee is ₱3,000 per
month. She made the following initial investment:

Cash ₱ 20,000

Three units of washing machine 45,000

Five units of electric iron 3,000

The entry in the journal will appear as follows:

Ref
Year 2019 Particulars Debit Credit
no.
Dec 01 Cash ₱ 20 000
Laundry Equipment 48 000
Jerry Toredo, Capital ₱ 68 000
To record initial investment

December 2. Bought detergents and other materials needed for washing of clothes, curtains,
blankets, and related items from Yvone Merchandising amounting to ₱1,800.

The entry in the journal will appear as follows:

Ref
Year 2019 Particulars Debit Credit
no.
Dec 02 Laundry Supplies Expense ₱ 1 800
Cash ₱ 1 800
To record purchase of detergents

December 5. Rendered various laundry services to walk-in customers and issued several official
receipts amounting to ₱7,300.

The entry in the journal will appear as follows:

Ref
Year 2019 Particulars Debit Credit
no.
Dec 05 Cash ₱ 7 300
Laundry service income ₱ 7 300
To record laundry service

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: [email protected]
 8

December 7. Paid the rent for the month of December 2019 amounting to ₱3,000.

The entry in the journal will appear as follows:

Ref
Year 2019 Particulars Debit Credit
no.
Dec 07 Rent Expense ₱ 3 000
Cash ₱ 3 000
To record payment of rent

December 10. Issued ₱38,000 to Izzy Hotel for various laundry services provided.

The entry in the journal will appear as follows:

Ref
Year 2019 Particulars Debit Credit
no.
Dec 10 Accounts receivable ₱ 38 000
Laundry service income ₱ 38 000
To record services on account

December 15. Paid the salaries of the laundry workers for the first half of December 2019
amounting to ₱7,000.

The entry in the journal will appear as follows:

Ref
Year 2019 Particulars Debit Credit
no.
Dec 15 Salaries and Wages ₱ 7 000
Cash ₱ 7 000
To record services on salaries

December 21. Collected the account of Izzy Hotel amounting to ₱38,000.

The entry in the journal will appear as follows:

Ref
Year 2019 Particulars Debit Credit
no.
Dec 21 Cash ₱ 38 000
Accounts receivable ₱ 38 000
To record collection of account

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: [email protected]
 9

December 23. Paid the following electric bill for ₱3,500 and business permit and licenses ₱5,000.

The entry in the journal will appear as follows:

Ref
Year 2019 Particulars Debit Credit
no.
Dec 23 Utilities expense ₱ 3 500
Taxes and licenses 5 000
Cash ₱ 8 500

To record payment of expenses

December 27. Rendered various laundry services to the following:

Walk-in customers- Official receipts ₱ 30,000

Angel Convention Center, Charge invoice, 30- 55,000

day received

Princess Resort, Charge invoice; received 25,000

The entry in the journal will appear as follows:

Ref
Year 2019 Particulars Debit Credit
no.
Dec 27 Cash ₱ 30 000

Accounts receivable 80 000

Laundry service income ₱ 110 000

To record laundry services

December 28. Bought the following from various suppliers on credit:

Office furniture ₱28, 000

Laundry Supplies 10,000

The entry in the journal will appear as follows:

Ref
Year 2019 Particulars Debit Credit
no.
Dec 28 Office furniture ₱ 28 000
Laundry supplies expense 10 000
Accounts payable ₱ 38 000
To record credit purchases

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: [email protected]
 10

December 29. Received a 30-day, with promissory notes from Hyzel Apartment for various laundry
services rendered amounting to ₱20,000.

The entry in the journal will appear as follows:

Ref
Year 2019 Particulars Debit Credit
no.
Dec 29 Notes receivable ₱ 20 000
Laundry service income ₱ 20 000
To record laundry purchases

December 30. Paid the salary of the workers for the second half of December 2019 amounting to
₱9,000.

The entry in the journal will appear as follows:

Ref
Year 2019 Particulars Debit Credit
no.
Dec 30 Salaries and wages ₱ 9 000
Cash ₱ 9 000
To record payment of salaries

When recording there must be no blank space after each transaction. Blank spaces are strictly not allowed
in bookkeeping. Hence the journal will appear as follows:

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: [email protected]
 11

General Journal:

Table 1: General Journal

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: [email protected]
 12

(3.B) Classifying. Involves sorting and grouping similar items under the designated name,
category, or account. This phase uses systematic analysis of recorded data in which all transactions are
grouped in one place. The term “ledger” refers to the book in which classifications are recorded.
The ledger appears like a capital letter T. It has two sides, namely the debit side and the credit side. In
the process of classifying similar transactions, the same information found in the journal will be transferred
to the ledger. The process of transferring the same information from the journal to the ledger is called
posting.
After all the entries have been posted, the next bookkeeping procedure is to foot the account. Footing is
the process of adding the debit and the credit money columns of the ledger and finding their balances.
Keep in Mind:
(1) If an account has a debit balance, that is, the debit total is higher than the credit total, the difference
is placed in the Particulars column of the debit side.
(2) If the account has a credit balance, that is, the credit total is bigger than the debit total, the difference
is place in the Particulars column of the credit side.
(3) If there is only one entry on any side of an account in the ledger, no footing is done, and the entry is
simply left often.
After all the accounts in the ledger have been added and the balances have been computed, the next
bookkeeping procedure is to prepare the trial balance. Trial balance is the listing of the debit and credit
balances of accounts from the general ledger with the following purposes:
(a) To prove the equality of debit credit
(b) To determine the nominal accounts to be closed
(3) To serve as basis for making draft financial statements
The trial balance has two major parts, namely the heading and the body. The heading normally has three
lines intended for the name of the business, title, and the date of the trial balance. The body presents the
different account titles and their balances.
The source of the trial balance is the ledger; the source of the ledger is the general journal; and the
sources of the entries in the journal are the different business documents.
The trial balance is normally written on a clean bond paper. The first amounts appearing in the money
columns and the amounts after the single rule bear the peso sign which will be omitted in the proceeding
amounts.

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: [email protected]
 13

General Ledger:
Assets: Liability:

Capital:

Income:

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: [email protected]
 14

Expenses: Trial balance:

Table 2: Trial balance

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: [email protected]
 15

(3.C) Summarizing. Involves summarizing the data after each accounting period, such as a month,
quarter, or year. The data must be presented in a manner which is easy to understand and use by both
external and internal users of the accounting statements.
The preparation of the trial balance is followed by the preparation of the financial statements namely
income statement and balance sheet.
The income statement is the structured financial statement that presents the income, expenses, and net
income or net loss realized during a certain period. The term net income represents the excess of the
gross income or revenue against the expenses, while the term net loss refers to the excess of the
expenses against the revenue or income during the period. The term period may mean a month, a
quarter, semi-annual, or annual. Hence, if the income statement has a date labeled “For the year ended
December 31,” it covers one-year operation. See table 3.
The income statement, therefore, basically reflects the profitability of the business operation for a given
period.
The income statement has two major parts, namely, the heading and the body. The heading contains
information on the name of the business, the name of the financial statement, and the date. The body is
composed of the revenue, expenses, and net income or net loss of the business during a given period.
The income statement consists of the following major sections:
Parts of the Income Statement Accounts Title

(1) Income or Revenue Section Sales, Sales returns and allowances, Sales
discount

(2) Cost of Goods Sold Section (The items included in the cost of gods sold or cost
of sale depend entirely on the nature of the
business, whether merchandising, service, or
manufacturing)
The cost of goods sold in merchandising is
composed of merchandise inventory, purchases
and related accounts.
The cost-of-service s is usually composed of items
that are directly involved in providing the service.
The cost of goods sold for manufacturing is the
most complicated because the business is
involved in converting raw materials to finished
products with the use of direct labor and other
overhead accounts.

(3) Operating Expense Section Salaries and wages, Utilities Expense, Supplies
Expense, Taxes, and licenses, Traveling expense,
Postage and communication, Doubtful accounts,
Depreciation expense, Gasoline, and oil

Before an income statement is prepared, the entrepreneur must consider the following:
(1) Be sure that the trial balance that serves as the basis of income statement preparation is
correctly balanced.

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: [email protected]
 16

(2) Only accounts that are considered nominal must appear in the income statement.
(3) The account is considered nominal when it appears only during a particular period. A nominal
account does not appear in the next accounting period without a transaction affecting the account, hence
considered as a temporary account.
(4) When amounts are added, an underline appears on the last amount being added. The
underline is technically called a single rule. The single rule implies that any amount that appears below
it is related. Hence, it may either be added or deducted. However, the last amount must always have two
underlines called double rule, which indicates that there are no more related amounts to follow.
The basis for preparing the income statement is the trial balance. All the accounts and amounts appearing
in the trial balance, as emphasized, come from the ledger.
The balance sheet is a structures financial statement that presents the financial position of the business
of a given date. The balance sheet has two major parts, namely, the heading and the body. The heading
contains of name of the business, title of the statement and date. The date of the balance sheet usually
starts with the words “as of”. Hence, if it is prepared on the last day of December, the date will be label
“As of December 31”.
The new name of the balance sheet is statement of financial position. The term financial condition,
in the definition of the balance sheet, refers to the liquidity and solvency or stability of the business. All
this information is provided and described in the balance sheet only.
Liquidity refers to the ability of the business to currently pay maturing obligations from the date of the
balance sheet. Currently maturing obligations are financial obligations that are payable within one year
from the date of the balance sheet.
Solvency or stability refers to the ability of the business to pay long-term obligations while maintaining
stability. Long-term obligations are payables whose maturity period is beyond one year from the date of
the balance notwithstanding the normal operating cycle of the business.
The balance sheet presents the three elements of accounting namely, assets, liabilities, and capital.
Asset section. The term assets refer to the properties owned or controlled by the business. They may
either be fixed to the soil or movable. They may also be tangibles or intangibles. The assets of the
business are divided into two major section, current assets, and noncurrent assets. Current assets
include those assets of the business that are consumed, realized, or utilized within one year or within the
normal operating cycle of the business, whichever is longer, from the date of the balance sheet.
Noncurrent assets include assets whose usefulness and benefits extend usually beyond one year or
beyond the normal operating cycle of the business from the date of the balance sheet.
The term normal operating cycle of the business refers to the period covered from the time cash has
been used to buy goods or raw materials have been processed and converted to finished products, the
products have been sold to the customers on account, and the receivables have been collected and
converted back to cash.

Categories of Assets Examples

(1) Current Assets Cash, either on hand or in bank

Accounts receivable
Notes receivable
Inventories (finished goods, work in process, and raw materials)

Address: Chipeco Ave., Brgy. 3, Calamba City

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 17

Supplies on hand (office or factory supplies)

Prepaid items (prepaid insurance, prepaid advertising)

(2) Noncurrent Assets Land

Building
Machinery
Equipment
Furniture and fixtures

Liability section. The term liability refers to the financial obligations of the business as of the date
indicated in the balance sheet. The liability of the business is divided into two major categories, current
liability, and noncurrent liability. Current liability includes financial obligations of the business that are
payable or will mature within one year from the date of the financial statements, notwithstanding the
normal operating cycle of the business. Noncurrent liability refers to financial obligations of the business
whose maturity period is beyond one year from the date of the balance sheet.

Categories of Liability Examples

(1) Current liability Accounts payable

Notes payable
Salaries payable
SSS, Medicare, and PAG-IBIG contribution payable
Advances from customers
Accrued expenses
(2) Noncurrent liability Mortgage payable
Long-term bank loan payable

Owner’s Equity section. The owner’s equity section of the balance sheet represents the residual
interest of the owner or owners on the properties of the business. This indicates whatever is left of the
assets of the business after all the financial obligations are finally settled and represents the interest of
the owner.
In simple accounting equation, the equity of the owner is computed as follows:
Owner’s equity= Assets – Liabilities
The title used to describe the owner’s equity depends on the form of the business organization. In a sole
proprietorship where there is only one owner, the equity of the owner is usually designated or labeled as
owner’s capital. In a partnership where there are at least two partners, the equity of the partner is
normally labeled as partner’s capital. In a corporate entity, the equity of the owner or stockholders is
usually labelled as shareholders’ equity.

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: [email protected]
 18

Income Statement:

Table 3: Income Statement

Balance Sheet:

Table 4: Balance Sheet

(3.D) Interpreting. Interprets the recorded data in a manner which allows end-users to make meaningful
judgments regarding the financial conditions of a business or personal account, as well as the profitability

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: [email protected]
 19

of business operations. This data is then used to prepare future and frame policies to execute financial
plans.

E What is more?
Activity 3: Check for Understanding
1. Differentiate a journal from a ledger.
__________________________________________________________________________________
2. Explain the accounting phases and accounting cycle how they are related.
__________________________________________________________________________________
3. Enumerate and explain the three major parts of the balance sheet.
__________________________________________________________________________________
4. Differentiate income statement from balance sheet.
__________________________________________________________________________________
5. In a sole proprietorship, explain the two items that affect the beginning capital balance of the owner.
__________________________________________________________________________________

E What I can do?

Activity 4: My Own Books (Individual business)
From your previous module (Module 2), you forecast your goals for a year. Choose a month and create
your own general journal and ledger using your answers in the previous module. You can adjust your
previous answers if necessary. Use the module for additional information about transactions per month.

E What else I can do?

Activity 5: Trial and Error, and Trial Again (Individual business)
Using your own ledger, summarize your answers by creating or preparing a trial balance and financial
statements.

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: [email protected]
 20

A What I have learned?

Activity 6: Simple Bookkeeping (Individual work)
Complete the accounting cycle and prepare the following:
(1) General Journal
(2) Ledger
(3) Trial balance
(4) Income Statement
(5) Balance Sheet
Use the following account titles to record the business transactions:

Cash Store supplies expense

Accounts receivable Office supplies expense

Office furniture and fixtures Utilities expense

Accounts payable Taxes and licenses

Yvone Iris Sado, Capital Gasoline and oil

Yvone Iris Sado, Drawing Salaries and wages

Sales Rent expense

Purchases

Business transactions:
Year 2020
Dec 1 Yvone Iris Sado opened her small poultry products business with the approved trade of
Fresh Poultry Store. The business is located at Jalipa Street, Pigcawayan Calamba City.
She made an initial investment of ₱350 000 in the form of cash.

2 Bought office furniture and fixtures from Lyzel Company amounting to ₱40,000, make a
down payment of ₱15,000.

4 Purchased various poultry products from Nicanor Poultry Farms amounting to ₱90 000; Paid
₱40 000 and credit for the balance.

5 Bought various office and store supplies as evidenced by an official receipt from the seller
for the following:

Office supplies ₱ 2 500.

Store supplies ₱ 3 000

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: [email protected]
 21

8 Sold product to various bakeries and restaurants as evidenced by a charge invoice

amounting to ₱45 000.

10 Sold various poultry farm products to walk-in customers amounting to ₱28 000.

12 Paid the account balances to Lyzel Company and Nicanor Poultry Farm

15 Paid the following expenses:

Rental for the month ₱ 4 000

Light and water ₱ 6 000

Taxes and licenses ₱ 5 000

Gasoline and oil ₱ 2 000

Salaries and wages of the workers ₱10 000

18 Collected in full the sale made on December 8.

20 Bought various poultry products from Nicanor Poultry Farm amounting to ₱120 000. Made a
down payment of ₱50 000 and was issued a charge invoice for the balance

22 Sold various poultry products to customers as follows:

Walk-in customers ₱ 32 000

Restaurants and bakeries on credit ₱ 80 000

26 Withdrew for her personal use ₱ 15 000

30 Made a partial payment of ₱30,000 to Nicanor Poultry Farm; Received partial collection from
the sale on Dec 22 amounting to ₱45,000; Paid the salaries of the workers ₱12,000

A Additional Activities
Activity 7: Into the Business
Instructions:
1. With your assigned group in Feasibility Study, prepare the following:
(a) forecast your budgets and do simple bookkeeping
(b) finished your feasibility study with conclusions and recommendations
(c) prepare for a complete business plan
(d) prepare for presentation of the business plan (focus your presentation to your marketing
plan)
2. The tasks will be assigned to your group leader via google classroom. Make sure you have assigned
a group name and group leader.
3. Uploading of output will be done by your group leader only.
4. Save your file in PDF (TNR 12 Justified) format with a file name: BPlan_Section_GroupName

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: [email protected]
 22

BUSINESS PLAN TEMPLATE

Major Parts of the Business Plan
Cover Page

Business Plan

(Name and Address of your

Proposed Business)

Owned by:

(Your Names as the Owners)

I. Introduction (Also kindly include the location of the business and reason why you chose that location
and funding requirements and source of funds)
II. Executive Summary (This section includes your Vision, Mission, Goals and Objectives, Perceptual
Mapping and Business Model)
III. Environmental Analysis (Results of Industry Analysis, Market Analysis, Competitive Analysis and
Consumer Analysis)
IV. Business Description
V. Organizational Plan
VI. Operational Plan (4M’s)
VII. Marketing Plan (7P’s)
VIII. Financial Plan (your answer in #1. a)
IX. Appendices

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: [email protected]
 23

A What I can achieve?

Post Test: Will be available via google classroom.

References
Books
Aduana, N.L(2017), Entrepreneurship in Philippine Setting for SHS, C&E Publishing, Inc.
Batisan, R. S. (2016), Entrepreneurship, DIWA Learning Systems Inc.

Websites
Colander, M., Accounting Basics for Students, Retrieved from www.accounting-basics-for-students.com

The Accounting Cycle, Maclay, K., Retrieved from content.personalfinancelab.com/finance-

knowledge/accounting/the-accounting-cycle/?v=c4782f5abe5c

What are the Basic Phases of Accounting, Newton, C. (2019), Retrieved from bizfluent.com/info-
10070882-usual-sequence-steps-recording-process-accounting.html

Why should I keep records? Retrieved from www.irs.gov/businesses/small-businesses-self-

employed/why-should-i-keep-records#

Elements of Accounting, Retrieved from www.accountingverse.com/accounting-basics/elements-of-

accounting.html

Address: Chipeco Ave., Brgy. 3, Calamba City

Telephone Number: (049) 544-6509
Email Address: [email protected]