Enclosure 1. Teacher-Made Learner's Home Task (Week 6) : 1. Official Receipt or Cash Receipt

Enclosure 1.
Teacher-made Learner’s Home Task (Week 6)

School: Samboan National High School Date: Nov 09-13, 2020
Grade/Section: 11- Love Subject Area/s: ABM 1
I. MELC: Analyze common business transactions using the rules of debit and credit
Solve simple problems and exercises in the analysis of business transactions
II. Objective/s:
Knowledge: identify the different types of business documents
Skills: solve simple problems and exercises in the analysis of business transactions
Values/Attitude: perform activities with utmost accuracy
III. Subject Matter: Business Transactions and Their Analysis
IV. References: ABM 1 Teacher’s Guide pages 80-96, CG, MELC for ABM 1
V. Procedure:
A. Readings
The information needed when recording transactions are taken from forms used to document
these transactions. In a typical service business, the following are the business documents
used:
1. Official Receipt or Cash Receipt

This document is used when a business receives money or a check. An Official Receipt or
Cash Receipt is a document that acknowledges that money or a check have been received.
2. Charge Invoice or Sales Invoice

A charge invoice is a document used when a service has been rendered, but the client
will be billed only after a certain number of days from the date of service. Often, a
company will issue a statement of account to a customer, with the charge or sales invoice
attached. For example: in a laundry business, a customer may avail of the services of the
business. However, that customer and the owner of the business had a prior agreement
that all services availed by the customer will be paid only after 30 days. In this case, a
charge invoice is issued on the day the client availed of the services.
3. Check or Cash Voucher
The check voucher is a document used when a check is issued to pay a certain supplier or
vendor. For example, in a laundry business, for the payment of monthly electricity bills,
the business may pay either in cash or check. But the company must prepare a cash or
check voucher to support this payment. This document will serve as a record of payment
and, at the same time, as proof that payment has been made by the company.
When to Debit and when to Credit:
An increase in an asset account is called a debit and an increase in a liability or equity account is called a
credit. Likewise, if we decrease an asset account we credit that account. On the other side of the equation, if
we decrease a liability or equity account we debit those accounts.
Rules on Debits and Credits

• The name of the account to be debited is always listed first. The debited account is listed on the
first line with the amount in the left side of the register.
• The credited account is listed on the second line and is usually indented. The credited amount is
recorded on the right side of the register.
• The total amount of debit should always equal the total amount of credit.
Review of the Accounting Equation

The basic accounting equation is what drives double-entry bookkeeping. The equation reflects the
accounts reported in the balance sheet. The basic accounting equation is as follows:
This is a very simple algebraic equation that reflects how the assets of an entity must be supported by either
debt or equity. As in algebra, if we add or subtract something from one side of the equation we must add or
subtract the same amount from the other side. For example, if we were to increase cash (an asset) we might
have to increase note payable (a liability account) so that the basic accounting equation remains in balance.
Applying the formula, the effects of these transactions to the equation are shown below:
Notice that at all times, the effects of the transaction to the right and left side of the formula should be equal.
If not, the journal entry is erroneous.
B. Exercises for skill subjects / Analysis questions using HOTS for content subjects
Exercise 1
Directions: Fill up the missing amount for each.
1. Asset = 120,000 3. Asset = 1,000,000
Liabilities = 15,000 Liabiliites = 370,000
Equity = ? Equity = ?
2. Asset = ? 4. Asset = 780,508
Liabilities = 18,250 Liabilities = ?
Equity = 98,360 Equity = 619, 000
Exercise 2
Directions: Indicate in each independent case whether the account is to be debited (DR) or to be
credited (CR)
1. Increase in Accounts Payable
2. Decrease in Capital account
3. Increase in Service Revenue
4. Increase in Cash
5. Decrease in Accounts Receivable
6. Increase in Salaries Expense
7. Increase in Office Equipment
8. Increase in unpaid Salaries
9. Increase in Owner’s drawing account
10. Increase in Interest Income
C. Assessment/Application
Directions: Identify the effects of the transactions to the accounting equation
ASSETS = LIABILITIES + OWNERS' EQUITY.
Example:
ASSETS = LIABILITIES + OWNERS' EQUITY
+200 = + 200
On June 1, Maya Cruz opened the Ganda Beauty Salon. During the first month, the
following selected transactions occurred:
1. Deposited PHP5,000 cash in the City Bank in the name of the business
2. Paid PHP800 cash for beauty supplies
3. Purchased equipment at a cost of PHP12,000 paying PHP2,000 in cash and the
balance on account
4. Received PHP1,200 cash for services rendered
5. Paid PHP500 cash as a salary to a beautician
6. Withdrew PHP400 cash for personal expenses
Prepared by:
JOYLETH M. FERRER Verified by:
Teacher
BERNARDITA F. ARIAS
School Head

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Enclosure 1.

Teacher-made Learner’s Home Task (Week 6)

1. Official Receipt or Cash Receipt

2. Charge Invoice or Sales Invoice

When to Debit and when to Credit:

Rules on Debits and Credits

Review of the Accounting Equation

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