Dominican College of Tarlac

College of Education
Certificate in Professional Education

Semi-Detailed Lesson Plan

in
Fundamentals of Accounting

In partial fulfillment of the requirements in

T1 (Principles of Teaching)

Prepared by:
Jovelyn Lee

Checked by:
Augusto Rodriguez Dela Cruz
Instructor
I. Objectives

a. Cognitive: Identify and classify the different accounts used in Accounting.

b. Affective: Understand the importance of different accounts used as well as the
significance of accounting as the language in the business world.
c. Psychomotor: Analyze and classify transactions according to the different accounts
used and the effect in the accounting equation

II. Subject Matter

a. Topic: Analysis of Business Transactions
b. Reference: Fundamentals of Accounting Book by Venus Catacutan, Jonathan
Gabriel & Myrna Mallari, pages 96-107
c. Materials: Computer, Projector, White Board and Marker, Hand-outs
d. Strategies: Problem Solving Discussion
e. Values Integrated: Students will demonstrate cooperation through participation in
class activity.

III. Learning Activities

a. Preparation Activities:
i. Greetings
ii. Morning prayer
iii. Checking of attendance

b. Review
i. Review will be incorporated in the motivation activity. Topic will be about
definition of accounting and its elements.

c. Developmental Activities
i. Motivation

Activity:
A specific number will be assigned to each student. Based on those
numbers, we’ll choose a number randomly using the random number
application. Whoever student owns the number that was called has to pick
a paper from the box. The student has to give his/her understanding about
the word written in the paper. This activity will assess the level of
knowledge of the students about accounting and its elements. After each
question, we will also briefly discuss in detail about the answers to also
serve as a review for them before we proceed with the main topic of our
discussion.

ii. Presentation

The teacher will discuss the following topics to the students:

1. Definition of business transactions

2. The basic accounting elements
3. The chart of accounts and their usage
4. The accounting equation
5. Analysis of the effects of business transactions in the accounting
equation
iii. Generalization

Business transaction is defined as an exchange of goods or services between

two parties (the buyer and the seller) for a certain sum of money.

The relationship of accounting elements is expressed in the basic accounting

equation as follows:

ASSETS = LIABILITIES + OWNER’S EQUITY

Assets are resources controlled by the company as a result of past

transactions that are expected to provide future economic benefit for the
entity.

Liabilities are obligations of the company that has resulted from past
transactions and the settlement of which is expected to result in an outflow
of resources embodying future economic benefits for the company.

Owner’s Equity is the residual interest in the assets of the entity after
deducting all its liabilities. Also known as the net assets.

Analysis of business transactions involves evaluating changes in the

accounting elements – assets, liabilities & owner’s equity. These accounting
elements are further broken down into different account titles that are used
in analyzing business transactions.

CHART OF ACCOUNTS

ASSETS
CURRENT ASSETS Cash in bank
Cash in hand
Petty cash fund
Accounts Receivable
Allowance for doubtful accounts
Notes Receivable
Loan Receivable
Inventories
Supplies
NON-CURRENT ASSETS Land
Building
Equipment
Furnitures & Fixtures
Accumulated Depreciation

LIABILITIES
CURRENT LIABILITIES Accounts Payable
Salaries Payable
Utilities Payable
Notes Payable
Loans Payable (non-current portion)
NON-CURRENT LIABILITIES Loans Payable
Mortgage Payable
 OWNER’S EQUITY
Owner’s Capital
Owner’s Drawing

REVENUE
Service Revenue
Commission Income
Professional Fees
Interest Income

EXPENSES
Rent Expense
Salaries & Wages
Utilities Expense
Supplies Expense
Transportation Expense
Insurance Expense
Bad Debt Expense
Depreciation Expense
Miscellaneous Expense

*New accounts maybe added and likewise old accounts may be eliminated
as needed.

In order to transform data into useful information, business transactions

must be carefully analyzed as to their effects to the accounting elements.
The following guidelines could be useful:

 There is an exchange that takes place in every transaction.

 Business transactions result to either increase or decrease in the
elements of the accounting equation.
 The equality of the accounting equation is always maintained.
 Proper account titles are used.
 Accounting principles and assumptions are used.
 Business transaction is always analyzed on the point of view of the
business.

iv. Closure/Application
COMPREHENSIVE ILLUSTRATION OF ANALYSIS OF BUSINESS
TRANSACTIONS USING WORKSHEET
July 1 Mr. Genius invested the following in the Expert Computer Shop. 50,000.00
cash and 125,000.00 worth of computer units.
July 2 Paid for mayor’s permit and other licenses, 2,500.00
July 4 Bought pens, papers and other supplies from Stationary on account,
1,750.00.
July 5 Paid for advertising, 2,000.00
July 6 Receipts for the day for services rendered, 3,500.00
 July 8 Sent a bill to sure company for computer services rendered to their
company, 5,500.00.
July 9 Paid the account to Stationary.
July 12 Air conditioning units were bought from Micro Company paying 10,000.00
balance of 7,500.00 payable in 30 days.
July 14 Computer fees for services rendered consisted of cash of 15,000.00 and
promissory note amounting to 6,500.00.
July 15 Salaries of 5,000.00 were paid to employees.
July 17 Sure Company paid its account.
July 20Mr. A paid 2,000.00 and promised to pay the 1,000.00 after 15 days for
computer services rendered to bin store.
July 25 Collected 1,500.00 of the promissory note dated July 14.
July 27 The owner withdrew 7,500.00 cash for personal use.
July 30 Paid for the following expenses, electricity and water 6,500.00 & salaries
4,500.00
*For illustration of the worksheet, please refer to the attached table.

IV. Evaluation

A. Identify the account titles described in each item.

1. Includes cash owned by the business which remains in the safekeeping of the
business and which are not deposited in the bank. (CASH ON HAND)
2. Represents an oral promise to pay from a customer for services rendered to him.
(ACCOUNTS RECEIVABLE)
3. An oral promise to pay to suppliers for items bought on account. (ACCOUNTS
PAYABLE)
4. Represents a written promise to pay from a customer for services rendered to
him. (NOTES RECEIVABLE)
5. Account title used to record cost of occupying a space leased to the business.
(RENT EXPENSE)
6. Account title used to record withdrawals made by the owner for personal use.
(DRAWINGS)
7. These are consumable items owned by the business used in its operations such
as pens, papers, stationeries and the likes. (SUPPLIES)

B. Identify the category of the accounts below with a (X) in the appropriate
column.

ACCOUNTS ASSETS LIABILITIES OWNER’S

EQUITY
Accounts Payable X
Supplies on Hand X
Loans Payable X
Cash X
Owner’s Capital X
 Furnitures and X
Fixtures
Notes Payable X
Equipment X
Owner’s Drawing X
Machineries X

V. Assignment

For each of the transactions below, indicate whether (A) assets, (L) liabilities or (OE)
owner’s equity will increase (+), decrease (-) or not change (NC) the total amounts of
each accounting element.

TRANSACTIONS A L OE
1 The owner invested cash to establish the business + NC +
2 Bought supplies by paying cash NC NC NC
3 The owner made an additional investment in the business + NC +
4 Acquired furniture on account + + NC
5 A partial payment was made on transaction no. 4 - - NC
6 The owner used his personal cash for the full payment of NC - +
transaction no. 4
7 Collected cash for services rendered to clients + NC +
8 Paid salaries of employees - NC -
9 Purchased equipment by paying cash NC NC NC
10 The owner took cash from the business for personal use - NC -
11 Paid monthly rent - NC -
12 Sent a bill to client for services rendered on account + NC +
13 Made a partial collection of customer’s account NC NC NC
14 Settled the personal liability of the owner by using the cash - NC -
of the business
15 Purchased a machinery by paying a down payment and the + + NC
balance on account