School Liceo Virgen Delos Remedios Grade Level 12

DETAILED LESSON (Placer) Inc.

PLAN IN FABM 12 Teacher Hershey Marie H. Abarri Learning Area Fundamentals of Accountancy, Business and Management 2
Time and Date July 4, 2025 to July 18, 2025 (Every Quarter 1
Friday)

I. OBJECTIVES
The learners demonstrate account titles under the assets, liabilities, and capital accounts of the Statement of Financial Position, namely, cash, receivables,
1. Content Standard 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
The learners shall be able to solve exercises and problems that require preparation of an SFP for a single proprietorship with proper classification of accounts as
2. Performance Standard
current and noncurrent using the report form and the account form
 Identify the elements of the SFP and describe each of them (ABM_FABM12-Ia-b1)
3. Learning Competencies
 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)
1. Identify the elements of the SFP
4. Specific Objectives 2. Describe the importance of each element
3. Prepare a Statement of Financial Positions.
II. CONTENT Topic: Statement of Financial Position
III. LEARNING RESOURCES
Salazar, D.R. (2017). FUNDAMENTALS OF ACCOUNTANCY, BUSINESS, AND MANAGEMENT 2 (First Edition). 856 Nicanor Reyes Sr. St., Sampaloc, pp. 2-
A. References
27.
From the internet:
B. Other Learning https://www.accountingverse.com/financial-accounting/elements/expense-accounts.html
Resources The Commission on Higher Education in collaboration with the Philippine Normal University FABM2
http://qm.riosalado.edu/resources/SyllabusDB/SocialSciences/Rubric_Short_Answer.pdf
C. Materials Laptop, TV, Pictures, Tarpapel, and PowerPoint Presentation
IV. PROCEDURES Integration: Strategy: Cooperative Learning
Teacher’s Activity Students’ Activity
ACTIVITY 1: TRUE OR FALSE
Instruction: Write True if you think the statement is correct and False Answers:
if it is not. Write your answer on the space provided before the 1. True
number. 2. True
_______1. The life of the business organization is divided into time 3. False
periods. 4. False
_______2. All journal entries require a brief explanation of what 5. True
transaction was transpired 6. True
A. Establishing the
_______3. The cost of noncurrent assets or fixed assets should be 7. False
Purpose of the New
recorded based on its present market value. 8. True
Lesson
_______4. Accounting Equation represented by A= L + C is the same 9. False
all the time. 10. True
_______5. SFP answers the question “how much I owe to my
creditors?”
_______6. SFP is prepared by all kinds of business organizations
like: servicing, merchandising, manufacturing, or hybrid business.
_______7. Net income is derived from the sale of merchandise.
_______8. Current assets are easily convertible into cash
 _______9. Long-term liabilities can be settled within one year or less
______10. According to GAAP income/expenses should be recorded
on the date when they are earned or expended whether it is received
or paid (Accruals)
ACTIVITY 2: AMAZINGLY YOURS The students will read the article silently.
Instruction: Please read the article and give your opinion by
answering the questions below.

Joel Cruz photocopying business has been profitable. It has attracted

a lot of clients and Joel has already bought another photocopying
machine and has requested his good friend Maria Lucas to help her
out in business operations. Seeing how successful his friend’s
business has been, Maria also wanted to set up her own business.
She has decided to rent the vacant space beside Joel’s photocopying
center, but is still undecided on what type of business she is going to
put up.

B. Presenting Examples/ One day, while helping out the photocopying center, Maria overheard
Instances of the New a group of
Lesson students having the following conversation:
Student 1: How I wish the school bookstore would sell notebooks with
face of my favorite celebrity on the cover!
Student 2: I agree with you. I wish they should also sell other school
supplies with cool designs and cute characters.
Student 3: And I don’t get why they run out of stock most of the time.
Remember we had to rush after our class to ride a tricycle and go to
the nearest mall in order to buy worksheets for our accounting class
the next day!
Student 1: Yes, I remember. That was really tiring, but right now, I’m
hungry.
Student 3: Oh, the photocopies are done! Let’s go buy some snacks
on our way home.

Analysis Possible Answers:

Based on the activity:
a) What kind of business Maria is planning to set up? a. Merchandising
C. Discussing new __________________________________________________ b. NO
concepts and new b) Is the business operation will be the same with Joel? c. Servicing offer service for income
practicing new skills #1 __________________________________________________ Merchandising buy and sell of merchandise
c) What do you think is the difference in the nature of business SFP either use report form/account form
operation? The forms use in reporting of SFP?
__________________________________________________
Abstraction
D. Discussing new
concepts and new
a. Permanent Account – these accounts are permanent in The student will listen attentively and participate actively.
practicing new skills #2
a sense that their balances remain intact from
 one accounting period to another.

- Examples: Cash, Accounts Receivable, Accounts

Payable, Loans Payable and Capital among others.
- Basically, assets, liabilities and equity accounts are
permanent accounts.
- They are called permanent accounts because the
accounts are retained permanently in the SFP until their The student will listen attentively and participate actively.
balances become zero.

b. Temporary accounts - unlike permanent accounts will

have zero balances at the end of the accounting period.

- This is in contrast with temporary accounts which

are found in the Statement of Comprehensive Income
(SCI).

c. Contra assets - are those accounts that are The student will listen attentively and participate actively.
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 The student will listen attentively and participate actively.
amount of depreciation booked against the fixed assets
of the company.

Definition of Statement of Financial Position (SFP)

 is a snapshot of the financial position of the company
 is a report based on the accounting equation: Assets +
Liabilities + (Owners’) EQUITY (ALOE)
 It is also called as 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

Elements of SFP
I. Assets –are resources with future benefits that are with the control
of the company.

Current Assets - are those that are expected to be realized or used

within the company's normal operating cycle or 1 year, whichever is
longer. They include properties that are held primarily for the purpose
of selling them in the near future. In essence, current assets are
short-term in nature.

1. Cash and Cash Equivalents

 Cash on Hand - consists of un-deposited collections
 Cash in Bank - made up of bank accounts that are
unrestricted as to withdrawal
 Short-term cash funds such as Petty Cash
Fund, Payroll Fund, Tax Fund, etc.
 Cash Equivalents are short-term investments with
very near maturity dates making them assets that are
"as good as cash".
2. Trading Securities or "Financial Assets at Fair Value"
 Trading Securities are investments in stocks that are
held with the purpose of trading (speculative
investments)
3. Trade and Other Receivables
 Accounts Receivable - receivables from customers
arising from rendering of services or sale of goods
 Notes Receivable - receivables from customers
which are backed up by promissory notes
 Other receivables representing claims from other
parties such as: Rent Receivable, Interest
Receivable, Dividend Receivable, etc.
 Allowance for Bad Debts - a contra-asset
account deducted from Accounts Receivable. It
represents the estimated uncollectible amount of the
receivable.
4. Inventories
 Inventories are assets that are held for sale in the
normal operations of the business. A service
business normally has no inventory account.
 Merchandising businesses normally maintain one
inventory account – Merchandise Inventory.
 Manufacturing businesses have several
inventories: Raw Materials Inventory, Work in
Process Inventory, Finished Goods Inventory,
and Factory Supplies Inventory.
5. Prepaid Expenses or Prepayments
 Prepayments consists of costs already paid but are
yet to be used or incurred. Common prepaid expense
accounts include: Office Supplies, Service
Supplies, Prepaid Rent, and Prepaid Insurance.

Non-Current Assets - are properties held for a long period of time

(i.e. more than 1 year).
 1. Property, Plant, and Equipment (PPE) also known as
Fixed Assets
 PPE includes tangible assets that are expected to be
used for more than one year. PPE accounts
include: Land, Building, Machinery, Service
Equipment, Computer Equipment, Delivery
Equipment, Furniture and Fixtures, Leasehold
Improvements, etc.
 Take note that land that is not used by the business
in its operations but is rather held for appreciation is
not part of PPE but of investments.
 Accumulated Depreciation - a contra-asset
account deducted from the related PPE account. It
represents the decrease in value of the asset due to
continuous use, passage of time, wear & tear, and
obsolescence.
2. Long-Term Investments
 Investment in Long-Term Bonds, Investment in
Associate, Investment in Subsidiary, Investment
Property, Long-Term Funds; these are investments
that are intended to be held for more than one year.
3. Intangibles
 An intangible has no physical form but from which
benefits can be derived and its cost can be
measured reliably.
 Intangibles include Patent for
inventions, Copyright for authorship, compositions
and other literary
works,Trademark, Franchise, Lease Rights,
and Goodwill.
4. Other Non-Current Assets
 Assets which cannot be classified under the usual
non-current asset categories
 Includes: Advances to Officers, Directors, and
Employees not collectible within one year, Cash in
Closed Banks, and Abandoned or Idle Property

There you have a list of asset accounts. Take note that different
companies may use different (although similar) sets of account titles.
It will depend upon the company's business and industry, and what
specific accounts were adopted in its chart of accounts.

II. Liabilities
- refer to economic obligations of an entity.
- A liability is technically defined as a "present obligation of
an enterprise arising from past transactions or events,
 the settlement of which is expected to result in an outflow
from the entity of resources embodying economic
benefits".
Current liabilities - are those that entity expects to settle within the
entity's normal operating cycle or 1 year, whichever is longer

1. Accounts Payable - refers to indebtedness that arise from

purchase of goods, materials, supplies or services and other
transaction in the normal course of business operations
2. Notes Payable - obligations that are evidenced
by promissory notes that are to be paid within 1 year
3. Income Tax Payable - current income tax obligation of the
company payable to the government
4. Withholding Tax Payable - includes wage taxes withheld
from employees that will be remitted to the appropriate
government agency. Separate accounts for Social Security
Payable and Medicare Payable are also often used
5. Accrued Expenses - expenses already incurred but not
yet paid. Accrued expense accounts include: Salaries
Payable, Rent Payable, Utilities Payable, Interest
Payable, Telecommunications Payable, and other unpaid
expenses
6. Unearned Revenues - represents advanced payments
from customers which requires settlement through delivery of
goods or services in the future
7. Any other short-term payable, i.e. any obligation that
is to be paid within 1 year after the balance sheet date

Non-Current Liabilities - are long-term obligations, i.e. expected to

be settled beyond one year.
1. Long-Term Notes Payable - obligations evidenced by
promissory notes which are to be paid beyond 1 year; also
commonly referred to as Loans Payable
2. Bonds Payable - liabilities supported by a formal promise
to pay a specified sum of money at a future date and pay
periodic interests. A bond has a stated face value which is
usually the final amount to be paid. Bonds can be traded in
bond markets.
 For serial bonds (bonds paid in installments), the
portion which is to be paid within one year is
considered as a current liability; the rest are non-
current. The same rule applies to other long-term
obligations paid in installments.
3. Mortgage Payable - long-term obligation to a bank or
other financial institution, secured by real properties of the
business
 4. Any other long-term payable, i.e. any obligation that is
to be paid beyond 1 year

III. Equity or the Owner’s Capital

- presents claims of the owner or the net assets of the
business.
- It is composed of the owner’s investments and the
accumulated net income of the company, net of any
distributions to the owners.
- It reflects the portion of the assets that belongs to the
owners of the business.

Accounts that affects Capital

1. Income or Revenue - are earned from rendering
services
2. Expense - refer to costs incurred in conducting
business
3. Withdrawal -
4. Revenue - are earned from rendering services.
ACTIVITY 3: YOU ARE MY CURRENT Answer:
Directions: Place a ✔ if your answer is in the “Current Assets”
column and place a if your answer is in the “Current Liabilities” Elements Current Assets Current Liabilities
column. ✔
1. Accrued Expenses
Elements Current Assets Current Liabilities ✔
2. Accounts Receivable
1. Accrued Expenses
3. Loan Payable
2. Accounts Receivable ✔
4. Cash
3. Loan Payable ✔
E. Developing Mastery 5. Inventory
(Leads to Formative ✔
Assessment) 4. Cash
6. Prepaid Expenses
5. Inventory ✔
7. Utilities Expense
6. Prepaid Expenses
8. Utilities Payable
7. Utilities Expense ✔
9. Cash on Hand
8. Utilities Payable
10. Unearned Revenue
9. Cash on Hand

10. Unearned Revenue

 ACTIVITY 4: MY STATEMENT! Rivera Sari-Sari store
Direction: Prepare a simple Statement of Financial Position STATEMENT OF FINANCIAL POSITION
using the following accounts: AS OF December 2019

Prepare a Statement of Financial Position for Rivera Sari-Sari

store using the following accounts:
Cash – 5,000 Assets
Loans Payable – 77,500
Accounts Receivable – 2,600 Current Assets
Supplies – 2,300 Cash P5,000
Equipment – 17,000 Accounts Receivable 2,600
Owner’s equity – 40,000 Supplies 2,300
Accounts Payable – 22,400 Total Current Assets P 9,900
Building –113,000
F. Finding Practical
Non-Current Assets
Application of Concepts
Building P113,000
and Skills in Daily Living
Equipment 17,000
Total Non-Current Assets P130,000
TOTAL ASSETS P139,900
========

Liabilities and Owner’s Equity

Current Liability
Accounts Payable P22,400
Non-Current Liability
Loan Payable 75,500
Total Liabilities P99,900
Owner’s Equity 40,000
TOTAL LIABILITIES & OWNER’S EQUITY P139,900
========
The teacher will ask the students of the question below.
G. Making Generalizations
and Abstractions about
1. As a student, how important are these elements? Answers may vary.
the Lesson
EVALUATION Answer Key to Assessment:
The students will be asked to get ¼ sheet of paper and answer the 1. Accounts Receivable
following questions within 10 minutes.
2. Capital
Direction: From the box select the best answer which will 3. Revenue
complete each statement.
H. Evaluative Learning 4. Liabilities
Capital Current Assets Accounts Receivable
5. Prepaid Expense
Liabilities Revenue Current Liabilities
6. Cash Equivalents
Cash Equivalents
7. Inventory
Accounts Payable Inventory Prepaid Expense
 8. Accounts Payables
___________________1. These are rreceivables from
9. Liabilities
customers arising from rendering of services or sale of goods.
___________________2. It reflects the portion of the assets that 10. Current liabilities
belongs to the owners of the business
___________________3. These are earnings from rendering
services
___________________4. It refers to economic obligations of an
entity.
___________________5. These are costs already paid but are yet
to be used or incurred.
___________________6. These are short-term investments with
very near maturity dates making them assets that are "as good as
cash".
___________________7. These are assets that are held for sale in
the normal operations of the business.
___________________8. It refers to indebtedness that arise from
purchase of goods, materials, supplies or services and other
transaction in the normal course of business operations.
___________________9. It refers to economic obligations of an
entity.
__________________10. These are those that entity expects to
settle within the entity's normal operating cycle or 1 year, whichever is
longer.
Assignment:

I. Additional Activities for

Application and
Remediation

V. REMARKS
VI. REFLECTION
A. Number of learners
who earned 80% in
the evaluation
B. Number of learners
who require
additional activities
for remediation who
scored below 80%
C. Did the remedial
lessons work?
No. of learners who
have caught up with
the lesson.
D. Number of learners
who continue to
require remediation.
E. What of my
strategies worked
well? Why did this
work?
F. What difficulties did
I encounter which
my principal or
supervisor can help
me to solve?
G. What innovation or
localized materials
did I use or discover
which I wish to
share to other
teachers?
Prepared by: Checked by: Verified by:

HERSHEY MARIE H. ABARRI AMELENE C. MONTEROLA ROGETO J. ENOC JR.

Teacher Academic Coordinator School Principal