LESSON EXEMPLAR

Angelita V. Del Mundo Foundation (AVM Foundation) Inc.

Subject Fundamentals of Accountancy & Business Management 2 Grade 12
Teacher Miss Sweetzel A. Precinio Quarter 1
Date June 16-20, 2025 Week 1

I. CURRICULUM CONTENT, STANDARDS, AND LESSON COMPETENCIES

A. Content The learners demonstrate an understanding of :
Standards 1. Account titles under the assets, liabilities, and capital accounts of the Statement of Financial Position
that will equip them in the preparation of the SFP using the report form and account form.
B. Performance The learners:
Standards  solve exercises and problems that require preparation of an SFP for a single proprietorship
with proper classification of accounts as current and non-current using the report form and the
account form
C. Learning The learners:
Competencies  Identify the elements of the SFP and describe each of them. ABM_FABM12-Ia-b-1
 Classify the elements of the SFP into current and noncurrent items. ABM_FABM12-Ia-b-2
 The learners prepare the SFP of a single proprietorship. ABM_FABM12-Ia-b-3
 The learners prepare an SFP using the report form and the account form with proper
classification of items as current and noncurrent. ABM_FABM12-Ia-b-4
D. Learning At the end of the lesson, learners should be able to:
Objectives 1. Reflect on the importance of preparing the SFP.
2. Reflect on the separation of current and noncurrent items in the SFP
3. Reflect on the difference of the report form and the account form
E. Content Statement of Financial Position (SFP) for Service Business

II. LEARNING RESOURCES

A. References Haddock, M., Price, J., & Farina, M. (2012). College Accounting: A Contemporary Approach, Second
Edition. New York: McGraw-Hill/Irwin.
Teachers Guide pages 1-18
B. Instructional Visual Presentation
Materials

III. TEACHING AND LEARNING PROCEDURE

A. Activating SESSION 1 (2 HOURS)
Prior What I Know:
Knowledge Ask the learners to recall the ideas they have learned in Fundamentals of ABM 1. Review the overview the
accounting equation.
•Assets are resources owned by the
business.
• Liabilities are obligations by the
business.
• Equity is the residual interest of the
owner of the business.
Ask the learner to enumerate or give an example of each account.
B. Establishing LESSON PURPOSE
Lesson What’s In:
Purpose Begin the lesson by introducing the types of major accounts:
Assets, Liabilities, Owner’s Equity, Income and Expense.
What is It:
Discuss the difference between :
1.Current vs. Non-Current Assets,
2. Tangible vs. Intangible Asset,
3. Current vs. Non-Current
C. Developing What’s More:
and Deepening * Connect to a real life
Understanding Place the accounting equation at the board.
* Tell that every transaction, the accounting equation
should always be balanced
* From the given word problems, shows the accounting
equation is always balance
Give at least 2 examples of business transactions
 Sweety Tutorial Center has an asset amounting to P 200,000, Liability is P 75,000.
How much is the owner’s equity account?
 Assets of TMAM is P15,000 and Total Equity is P10,000, how much is total Liabilities?
Additional Activities
A. Identification : Identify the following :
Assets Accounts Receivable Intangible Assets
Liabilities Notes Receivable Property, Plant and Equipment
Owner’s Equity Rent Expense Cash Prepaid Expense

Liabilities_1. It is the obligations of the company payable in money, goods or services.

PPE_____2. These are non-current tangible assets.
Intangible Assets 3. These assets are identifiable, non-monetary assets without physical substance.
Owner’s Equity 4. It is the claim of the owner also known as the capital.
Cash 5. It is the most liquid asset and is the medium of exchange for business transactions.
Prepaid Expense 6. It is an expense for leased office space, equipment or assets rented from others.
Assets 7. Examples of this are cash, account receivable and prepaid expenses.
Notes Receivable 8. It is a written promise from the customer to pay his receivables on a certain future date.

SESSION 2 (2 HOURS)
My Family’s Financial Position
Instructions: Cut out pictures from magazines, take a picture or draw all their family’s assets, liabilities, and
owner’s equity account. Make a reflection of what their family need to do in order to make the Financial
Position more attractive.

Presentation of their Reflection/Output.

Learners will present their output in My Family’s Financial Position.

D. Making What I have learned:

Generalizations Summarized the topic:
When the company has a lot of assets (example: cash, accounts receivable, prepaid expenses), owners may
sometimes think that the company is doing well. There are instances that owners forget that they might also
have a lot of liabilities which may result to their equities having a very small balance. With the preparation of
the SFP, the owner can easily see the assets, liabilities and equity balances of his/her company which will
show exactly the financial position of the company as of a given point in time. Without the SFP, the company
cannot know if it truly owns anything because in case of bankruptcy, liabilities are paid first.
Reflective Questions: Why do you think SFP is an essential tool for making management decisions?

IV. EVALUATING LEARNING: FORMATIVE ASSESSMENT AND TEACHER’S REFLECTION

A. Evaluating ASSESSMENT:
Learning Instructions: Compute for the missing amount of the account titles taken from the SPF of independent
company.
_______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, P2,800; Prepaid Insurance, P700; Equipment, P85,500 and Cash, P75,550.
On the same date, TMAM owed the following creditors: Mely’s Supply Company, P8,000; Mark’s Equipment,
P19,500. 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, P4,800; Prepaid Insurance, P15,000; Equipment, P68,200
and Cash, P40,650. On the same date, Juana owed the following creditors: Bonny Supply Company, P42,000
(due in 6 months); Maria’s Equipment, P90,500 (due after 2 years). Current liability is
_______4. If during the year total assets increase by P85,000 and total liabilities decrease by P15,000, 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?

A. Teacher’s Note: observations on any of the Effective Practices Problems Encountered

Remarks following areas:
materials
used learner engagement/ interaction
others
B. Teacher’s Reflection guide or prompt can be on:
Reflection 1. Principles behind the teaching
What principles and beliefs informed my lesson?
Why did I teach the lesson the way I did?
2. Students
What roles did my students play in my lesson?
What did my students learn? How did they learn?
3. Ways forward
What could I have done differently?
What can I explore in the next lesson?

Prepared by: Reviewed by: Noted by:

Miss Sweetzel A. Precinio Mr. King Jehoshua S. Petrache, LPT Mrs. Imelda Grace A. Santos, MAEd
Subject Teacher Assistant Principal College Dean & SHS Principal