Instructional Planning

(The process of systematically planning, developing, evaluating and managing the instructional
process by using principles of teaching and learning - D.O. 42, s. 2016)
Detailed Lesson Plan (DLP)

School Esperanza Senior High School Grade Level 12

Teacher Daisy Pao Learning Area FABM 2

Time 1:45 – 2:30 pm G12-Frugality Quarter Quarter 1 - Week 1

Dates/Days Jul 29 – Aug 2, 2024 Semester First Semester

I. OBJECTIVES
A. Content Standards The learners demonstrate an understanding of account titles under the assets,
liabilities, and capital accounts of the Statement of Financial Position, namely,
cash, receivables, inventories, prepaid expenses, property, plant and equipment,
payables, accrued expenses, unearned income, long-term liabilities and capital that
will equip him/her in the preparation of the SFP using the report form and account
form
B. Performance Standards The learners are able to solve exercises and problems that require preparation of an
SFP for a single proprietorship with proper classification of accounts as current and
noncurrent using the report form and the account form
C. Learning Competencies / The learners will be able to
Objectives  identify the elements of the SFP and describe each of them
ABM_FABM12- Ia-b-1
 prepare an SFP using the report form and the account form with proper
classification of items as current and noncurrent
Write the LC code for each
ABM_FABM12-Ia-b-4
Statement of Financial Position (SFP)
II. CONTENT
III. LEARNING RESOURCES
A. References
1. Teacher’s Guide pages TG pp. 1-18
2. Learner’s Materials Pages FABM 2 Quarter 1-Module 1
3. Textbook Pages
4. Additional Materials from https://fnhs.edu.ph/
Learning Resource (LR) portal https://www.studocu.com/ph

B. Other Learning Resources Laptop, PowerPoint, DLP/TV, video

V. PROCEDURES
Preliminary Activity:
Introductory Activity I. Opening Prayer
II. Checking of attendance
III. Students are instructed to pick up trash on the floor instilling the value of
cleanliness. The students are also encouraged to arrange their chairs properly
to facilitate orderliness in the classroom.
IV. Review of the previous lesson (previous semester)
V. Introduction of subject matter
•Presentation of new topic
REVIEW: (Previous Semester)
Activity/Strategy 1. Ask the learners if they can still remember the following terms:
a. Accounting Equation
b. Assets
c. Liabilities
d. Equity
e. Single/sole Proprietorship Business
2. Normal Balance of Accounts (Debit and Credit)
 Activity 1. Prepare a Personal SFP:
A. Get a piece of paper.
B. Write your current savings and everything that you own (clothes, money,
gadgets, jewelry etc.)
C. Write the amount that you owe to your friends, family members, parents
(tuition)
D. Deduct the amount you owe from the amount you own
E. Associate amounts owned with assets and amount owed with liabilities with
the net amount as equity.
Activity 2. Group Activity
Instruction: The students will be divided into 4 groups and will classify the Accounts
Titles under:
1. Current Assets
2. NonCurrent Assets
3. Current Libilities
4. NonCurrent Liabilities
5. Equity
1. How much is your equity?
Analysis 2. Do you have greater assets than your liabilities? Or vice versa?
3. There might be some cases your computation is zero or even negative. This
means that your liabilities to your friends, relatives and/or parents are higher
than your assets.
4. In business, having more assets does not mean that the business is earning
but usually companies have assets that are bigger than their liabilities.
5. Reflect on the importance of having a personal statement of financial position.
At the end of the topic, the learners should be able to:
1. Identify the elements of the SFP and describe each of these items for a
single/sole proprietorship business
Abstraction 2. Prepare an SFP for a single/sole proprietorship business using the report
form
3. Prepare an SFP for a single/sole proprietorship business using the account
form

Lesson 1. Nature of Statement of Financial Position

1. Define the term Statement of Financial Position and introduce the term
Permanent Accounts

STATEMENT OF FINANCIAL POSITION – Also known as the balance sheet. This

statement includes the amounts of the company’s total assets, liabilities, and
owner’s equity which in totality provides the condition of the company on a specific
date. (Haddock, Price, & Farina, 2012)

PERMANENT ACCOUNTS – these accounts are permanent in a sense that their

balances remain intact from one accounting period to another.
Examples of permanent account includes:
Cash
Accounts Receivable
Accounts Payable
Loans Payable
Capital

Assets, liabilities and equity accounts are permanent accounts because

they are retained permanently in the SFP until their balances become zero.

This is in contrast with temporary accounts which are found in the Statement
of Comprehensive Income (SCI). Temporary accounts unlike permanent
accounts
will have zero balances at the end of the accounting period.

CONTRA ASSETS – Contra assets are those accounts that are presented under the
assets portion of the SFP but are reductions to the company’s assets. These include
Allowance for Doubtful Accounts and Accumulated Depreciation.
 Allowance for Doubtful Accounts is a contra asset to Accounts
Receivable. This represents the estimated amount that the company may
not be able to collect from delinquent customers.
  Accumulated Depreciation is a contra asset to the company’s Property,
Plant and Equipment. This account represents the total amount of
depreciation booked against the fixed assets of the company.

Provide a sample SFP to the learners (powerpoint or hard copy) as an overview.

Use the sample below

Two (2) Forms of Statement of Financial Position

1. Report Form – A form of the SFP that shows asset accounts first
and then liabilities and owner’s equity accounts after.
2. Account Form – A form of the SFP that shows assets on the left
side and liabilities and owner’s equity on the right side just like the
debit and credit balances of an account.

Lesson 2. Elements of Statement of Financial Position and Steps in

Preparation

1. Prepare the Statement Heading

• includes the name of the company
 • name of the statement, and the
• date covered
• The use of “as of” in the SFP means that the amounts are
cumulative from the beginning of the life of the company since
these amounts are permanent.
2. Prepare the Asset Section
• Assets are categorized as current or non-current.
• Current assets and noncurrent assets are arranged by liquidity.
• Liquidity means converting such assets into cash.
Current Assets
 Assets that can be realized (collected, sold, used up) one year
after year-end date.
Noncurrent Assets
 Assets that cannot be realized (collected, sold, used up) one
year after yearend date.
3. Prepare the Liabilities Section
• Liabilities are categorized as current or non-current.
• Current assets and noncurrent liabilities are arranged by liquidity.
• Liquidity means converting such liabilities into cash.
Current Liabilities
 Liabilities that fall due (paid, recognized as revenue)
within one year after yearend date.
Noncurrent Liabilities
 Liabilities that do not fall due (paid, recognized as revenue)
within one year after year-end date.
4. Prepare the Owner’s Equity Section
• This section is basically lifted from the ending balances of
accounts in the statement of changes in equity.
5. Ensure that the Accounting Equation is Balanced
• Total assets will have to equate to total liabilities and equities
• the statement is footed and tested for mathematical accuracy

ACTIVITY 3. The students will compute the following:

Application 1. Learning is Fun Company had current assets amounting to Php 100,000.
Noncurrent assets for the year totaled Php 76,000. How much is the
company’s total assets?
2. Happy Selling Company’s total liabilities amounted Php 10,000. Total
equity had an ending balance of Php 20,000. How much is total assets?
3. Happy Selling’s had the following accounts at year end: Cash-250,000,
Accounts Payable-70,000, and Prepaid Expense-15,000. Compute for the
company’s current assets.

ACTIVITY 4. Classify the following accounts whether they are assets, liability, or
equity accounts. For asset and liability accounts, classify whether they are current or
non-current.
 SUMMATIVE TEST: PART 1
Assessment Read and carefully examine the statements and choose the best answer.
1. A statement of financial position can be best described as a:
A. Listing of money received and paid during the past year
B. Summary of what happened last year
C. Summary of all assets, expenses, liabilities, and revenues
D. Summary of the position of an organization
2. An asset is an
A. Expense that will recur in more than one year
B. Obligation to transfer benefits because of past transactions
C. Interest of the owner in the business
D. Any financial resources that is used by the business in its operation
3. The Statement of Financial Position equation is:
A. A – E = L C. A – L= E
B. L + E = A D. All of the choices
4. XYZ Company have non-current assets of P 60,000, current assets of P 70,000,
current liabilities of P 40,000, and a long-term loan of P 50,000; as such the
owner’s equity will be:
A. P 40,000 C. P 60,000
B. P 50,000 D. P 70,000
5. What is a financial statement that shows the financial position of an enterprise at a
particular point in time?
A. Balance Sheet C. Income Statement
B. Cash Flow Statement D. Statement of Changes in Equity
6. A Statement of Financial Position
A. Shows the changes of the owner’s interest
B. Reports the assets and claims of an enterprise at a specified moment in
time
C. Presents revenue and expenses of an enterprise
D. Reports the inflow and outflow of cash in an enterprise
7. Which of the following transactions would increase cash as well as non-current
liabilities?
A. Long-term bank loan
B. Purchasing equipment on credit
C. Payment to suppliers
D. Payment from customers
8. Which of the following accounts is a current asset?
A. Bond Payable C. Notes payables
B. Property, Plant and Equipment D. Accounts receivables
9. Which of the following accounts is a non-current asset?
A. Accounts Payable C. Cash
B. Capital D. Trademarks
10. Which of the following accounts is a current liability?
A. Trade receivables C. Trade Payables
B. Retained Earnings D. Machineries
PART 2. Prepare a Statement of Financial Position using the following accounts in
 account form (10 points)
Cash 5,000
Loans Payable 77,500
Accounts Receivable 2,600
Supplies 2,300
Equipment 17,000
Owner’s equity 40,000
Accounts Payable 22,400
Building 113,000
Use any business name and the end of the current year for the heading.
PART 3. Compute the following
1. Happy Selling’s Accounts Receivable amounted to Php 500,000. Prepaid
Expense and Unearned Income totaled Php 30,000 and Php 10,000 respectively.
Cash balance amounted to Php 100,000 while Accounts Payable and Inventory
totaled to Php 20,000 and Php 10,000 respectively.
2. How much is the company’s current assets? Current liabilities? Company’s
Total Liabilities and Equity amounted to Php 285,000. Total noncurrent assets ended
at Php 85,000. Cash totaled Php50,000. Inventory amounted to Php100,000.
Assuming the company had no other assets, how much is Accounts Receivable?
3. Total assets amounted to Php575,000. Total equity amounted to Php 250,000.
Accounts Payable amounted to Php 50,000 while Unearned Income totaled Php
85,000. Assuming there are no other current liabilities, compute for the company’s
noncurrent liabilities.
Assignment/Agreement

V. REMARKS

VI. REFLECTION
A. No. of learners who earned 80% on
the formative assessment.
B. No. of learners who require additional
activities for remediation.
C. Did the remedial lessons work? No.
of learners who have caught up with the
lesson.
D. No. of learners who continue to
require remediation.
E. Which of my teaching strategies
worked well? Why did these work?
F. What difficulties did I encounter
which my principal or supervisor can help
me solve?
G. What innovation or localized
materials did I use/discover which I wish
to share with other teachers?

Prepared by: Checked by:

DAISY PAO RECHIE A. LAZALITA

Teacher II School Principal I