I.

OBJECTIVES
A. Content Standard
The learners demonstrate an understanding of the business transactions and their analysis, to
include definition and nature of business transactions, types of sources or business documents, and
the rules of debits and credits.
B. Performance Standard
The learners shall be able to identify business and non-business transactions, enumerate the types
of business documents, recite the rules of debit and credit, and apply these to simple cases.
C. Learning Competencies
The learners shall be able to describe the nature of business and give examples; identify the
different types of business documents; analyze common business transactions using the rules of
debit and credit; and solve simple problems and exercises in the analysis of business transactions.
D. Learning Objectives
At the end of this lesson, the learners will be able to:
1. Describe the nature of a service business and give examples
2. Identify the different types of business documents
3. Prepare journal entries of business transactions in a service business.
4. Solve problems and exercises in the analysis of business transactions.
II. CONTENT
“BUSINESS TRANSACTIONS AND THEIR ANALYSIS AS APPLIED TO THE ACCOUNTING
CYCLE OF A SERVICE BUSINESS”
Posting
Preparation of a Trial Balance

III. LEARNING RESOURCES

A. References:
1. Curriculum Guide
2. Wild, J. (2009). Principles of Accounting 19th ed. McGraw Hill Publishing
3. www.principlesofaccounting.com
B. Materials: PowerPoint presentation, laptop, projector, chalk, and learning materials.

IV. PROCEDURES
Teacher’s Hint
A. Preliminary Activities
1. Prayer
2. Greetings
3. Classroom Management
4. Checking of Attendance

B. Lesson Proper
1. Reviewing previous lesson or presenting new lesson
Ask the learners to recall the discussion on the types of businesses according to activities ask
them to differentiate each. Show pictures.
2. Establishing a purpose for the lesson
Lesson Motivation
Ask the learners to give examples of service business in their community.
3. Present Lesson Objectives
At the end of the lesson, the learners should be able to:
1. Describe the nature of a service business and give examples
2. Identify the different types of business documents
 3. Prepare journal entries of business transactions in a service business.
4. Solve problems and exercises in the analysis of business transactions.

4. Present Lesson Discussion

“BUSINESS TRANSACTIONS AND THEIR ANALYSIS AS APPLIED TO THE
ACCOUNTING CYCLE OF A SERVICE BUSINESS”
Posting
Preparation of a Trial Balance

5. Developing Mastery

Journalize the following transaction.

Pedro Matapang started his Matapang Computer Repairs business on February 14, 2016.
The following transactions transpired in February 2016:
1. February 14, 2016 - Pedro Matapang invested PHP200,000 into his Matapang Computer
Repair business.
2. February 15, 2016 - Pedro purchased one computer unit from XY Computer Store to be
used for his business. He issued check number 001 amounting to PHP25,000.
3. February 16, 2016 - Pedro hired Juana Magaling, an experienced secretary.
4. February 17, 2016 – Repaired the computer of Jean and collected PHP10,000.
5. February 18, 2016 – Repaired the computer of Mike; however, Mike will pay PHP15,000
only on March 18, 2016.
6. February 19, 2016 – Pedro purchased Office Supplies from MM Merchandise amounting to
PHP5,000 on account. Pedro will pay this on March 30, 2016.
7. February 25, 2016 – Paid the salary of Juana amounting to PHP4,000.

6. Application
Use the transactions of Matapang Computer Repairs. After journalizing, make a ledger and
trial balance.
7. Generalization
QUIZ

Mr. Laban Deyro opened his laundry business in Iloilo City on January 2, 2016. The following
transactions occurred during the month of January 2016:

Required Tasks
1. Prepare the general journal entries for the above transactions (ignore giving explanations after every
entry)
2. Post the following transactions to the general ledger.
3. Prepare the unadjusted trial balance as of January 30, 2016

DATE TRANSACTIONS
1/2/16 Invested PHP500,000 to his business. The trade name of the business was “MR. LABANDERO”
1/4/16 Collections from various customers for the day - PHP3,000
1/5/16 Purchase store supplies from Labada Store - PHP10,000
1/7/16 Collections from various customers for the day - PHP8,000
1/8/16 MR. LABANDERO entered into an exclusive contract with Sikat Hotel where the business will
do all the laundry of the hotel.
1/9/16 Sikat Hotel availed the services of MR. LABANDERO amounting to PHP15,000. Payment will
be made on January 20, 2016.
1/10/16 Collections from various customers for the day - PHP12,000
1/12/16 Purchase a washing machine amounting to PHP50,000
 1/15/16 Collections from various customers for the day - PHP20,000
1/19/16 Paid electricity bill for the month amounting to PHP18,000
1/20/16 Received payment from Sikat Hotel amounting to PHP15,000
1/21/16 Paid salaries of Allan and Allie - PHP15,000
1/22/16 Mr. Laban Deyro needed money for the hospitalization of his son. He withdrew PHP18,000
from the business.
1/25/16 Paid airfare ticket of PHP1,500 for the travel of Mr. Deyro to Manila to negotiate a contract with
Sosyal Hotel
1/26/16 Paid taxes to the City of Iloilo, PHP4,000
1/27/16 Purchased office supplies amounting to PHP12,500
1/28/16 Collections from various customer for the day - PHP5,000
1/29/16 Sosyal Hotel availed the services of MR. LABANDERO amounting to PHP15,000 payable on
Feb 25, 2016.

V. EVALUATION
How important is the trial balance in accounting cycle?
Why is the ledger is next to journal and why we can’t make a record of ledger without a journal?
VI. REMARKS
VII. REFLECTION