Raizelle Thea S.
Zaide
9/Courage
Worksheet for TLE HE 9 Accounting
Day 1 – Introduction to Accounting Equation
By the end of the lesson, students should be able to:
1. Define the accounting equation and its components: Assets, Liabilities,
and Owner’s Equity.
2. Explain the importance of the accounting equation in maintaining the
balance of financial records.
3. Illustrate the relationship among assets, liabilities, and owner’s equity
through examples.
4. Solve for the missing element (Assets, Liabilities, or Equity) using the
accounting equation.
5. Analyze simple business transactions and demonstrate their effects on the
accounting equation.
6. Construct a simple table showing changes in the accounting equation after
a series of transactions.
7. Value the role of the accounting equation in preparing accurate financial
statements.
Springboard Activity
👉 Think-Pair-Share
Imagine you want to start a small sari-sari store.
What things do you need (cash, products, shelves)?
Where do you get them (your own money, borrowed money, etc.)?
Guide Questions:
1. What do we call the resources owned by a business?
- Assets
2. What do we call the debts or obligations of a business?
- Liabilities
3. Who is the owner of the business?
- Owner
Discussion
The Accounting Equation shows the relationship among Assets, Liabilities,
and Owner’s Equity.
Formula:
Assets = Liabilities + Owner’s Equity
Assets – resources owned by the business (cash, equipment, inventory)
Liabilities – obligations/debts (loans, accounts payable)
Owner’s Equity – owner’s claim on assets (capital, investment, retained
earnings)
💡 The equation must always be balanced.
Exercises
1. A business has ₱50,000 in assets and ₱20,000 in liabilities. Compute
Owner’s Equity.
Solution:
Assets = Liabilities + Owner's Equity
Given:
Assets = ₱50,000
Liabilities = ₱20,000
Owner's Equity = Assets - Liabilities
Owner's Equity = ₱50,000 - ₱20,000
Owner's Equity = ₱30,000
Answer: ₱30,000.
2. Liabilities = ₱15,000; Owner’s Equity = ₱25,000. Compute Assets.
Solution:
Assets = Liabilities + Owner's Equity
Given:
Liabilities = ₱15,000
Owner's Equity = ₱25,000
Assets = ₱15,000 + ₱25,000
Assets = ₱40,000
Answer: ₱40,000.
Assessment
Solve the following:
1. Assets = ₱120,000; Liabilities = ₱45,000. Find Owner’s Equity.
Assets = Liabilities + Owner's Equity
Given:
Assets = ₱120,000
Liabilities = ₱45,000
Owner's Equity = Assets - Liabilities
Owner's Equity = ₱120,000 - ₱45,000
Owner's Equity = ₱75,000
Answer: ₱75,000.
2. Owner’s Equity = ₱80,000; Liabilities = ₱20,000. Find Assets.
Assets = Liabilities + Owner's Equity
Given:
Liabilities = ₱20,000
Owner's Equity = ₱80,000Assets = ₱20,000 + ₱80,000
Assets = ₱100,000
Answer: ₱100,000.
3. Assets = ₱150,000; Owner’s Equity = ₱90,000. Find Liabilities.
Assets = Liabilities + Owner's Equity
Given:
Assets = ₱150,000
Owner's Equity = ₱90,000
Liabilities = Assets - Owner's Equity
Liabilities = ₱150,000 - ₱90,000
Liabilities = ₱60,000
Answer: ₱60,000.
Day 2 – Applying the Accounting Equation
By the end of the lesson, students should be able to:
1. Define the accounting equation and its components: Assets, Liabilities,
and Owner’s Equity.
2. Explain the importance of the accounting equation in maintaining the
balance of financial records.
3. Illustrate the relationship among assets, liabilities, and owner’s equity
through examples.
4. Solve for the missing element (Assets, Liabilities, or Equity) using the
accounting equation.
5. Analyze simple business transactions and demonstrate their effects on the
accounting equation.
6. Construct a simple table showing changes in the accounting equation after
a series of transactions.
7. Value the role of the accounting equation in preparing accurate financial
statements.
Springboard Activity
Quick Recall Drill
Look around your house. Classify all the things you can find around your
house (or any information related to your house) into “Assets,” “Liabilities,”
or “Equity".
ASSETS. LIABILITIES. EQUITY
Bahay Mortgage Savings
Lupa Credit Card Investment
Alahas Personal loan Capital
Apliances
Discussion
Business transactions affect the accounting equation. Each transaction
changes two or more elements but keeps the equation balanced.
Example Transaction:
- A business purchases equipment worth ₱20,000 on credit.
- Assets (Equipment) increase by ₱20,000.
- Liabilities (Accounts Payable) increase by ₱20,000.
Owner invests ₱50,000 cash into the business.
Assets (Cash) ↑ ₱50,000. Owner’s Equity ↑ ₱50,000
Business borrows ₱20,000 from the bank.
Assets (Cash) ↑ ₱20,000. Liabilities ↑ ₱20,000
Sample Exercises
Record the effect of each transaction on the accounting equation:
1. Invested ₱100,000 cash into the business.
2. Purchased equipment worth ₱30,000 on credit.
3. Paid ₱10,000 of the debt.
Transaction Assets Liabilities Owner’s Equity
Beginning. 0 0 0
1 invested 100,000 cash +100,000 0
+100,000
2 Purchased equipment
Worth 30,000 on credit +30,000 +30,000
0
3 Paid 10,000 of the dept -10,000 -10,000.
0
Assessment
Fill in the blanks to show how each transaction affects the accounting
equation:
1. Owner invested ₱40,000 cash.
Assets: _40,000______
Liabilities: __0_____
Owner’s Equity: __40,000_____
2. Business bought supplies worth ₱5,000 cash.
Assets: __5,000 cash 5,000 supplies_____
Liabilities: ___0____
Owner’s Equity: ___0____
3. Business borrowed ₱25,000 from the bank.
Assets: _25,000______
Liabilities: __25,000_____
Owner’s Equity: ___0____
