aliliRepublic of the Philippines

DEPARTMENT OF EDUCATION
Region I
Division of Pangasinan II
Binalonan, Pangasinan

ACTIVITY SHEETS IN FUNDAMENTALS OF

ACCOUNTANCY, BUSINESS AND MANAGEMENT 1
QUARTER III, WEEK 2 TO 3

MELC 9: Perform operations involving simple cases with the use of

accounting equation

 K to 12 BEC CG: ABM_FABM11- IIIb-c-18

Objectives: The learners should be able to

1. Analyze the effect of transactions on the accounting equation.
2. Solve basic problems applying the accounting equation.

Prepared by:

MONALIZA G. CAMACHO
Teacher II
Name: _____________________________________________________ Date: _____________

Grade/Section:____________________________________________ Score:____________

Title of the Activity: The Use of Accounting Equation in Solving Simple Cases
Most Essential Learning Competency: Perform operations involving simple cases with
the use of accounting equation.
K to 12 BEC CG: ABM_FABM11- IIIb-c-18

Direction: Solve the following problems with the use of accounting equation.

1. Friendship Book Store started its operation in 2019 with initial assets
worth ₱480,000 while liabilities were ₱200,000. During the year, assets increased to
₱100,000. How much is the total equity at the end of the year?
2. If the equity of Victoria Company is ₱430,000 and half of it is its liabilities, how much is
the assets of the company?
3. Compute the liabilities of Ysabel Fashion Hub if assets are ₱186,500 and equity is
₱124,300.
4. How much is Victory Tea’s assets if equity is ₱340,800 and liabilities, ₱120,000?
5. What should be the equity of the Vega Enterprise if assets are ₱560,700 and liabilities are
₱210,820?

II. Determine the total assets of Universe Enterprise with the following data. Write your answers
on the table across the data.

1. Capital - ₱96,500 Assets Liabilities Equity

Accounts Payable Capital Revenue Expenses
Accounts Payable - ₱37,250
Revenue - ₱66,300
Expenses during the year - ₱52,900
 2. Capital - ₱450,000 Assets Liabilities Equity
Withdrawal - ₱25,000 Accounts Payable Capital Revenue Expenses Withdrawal
Revenue - ₱230,000
Expenses - ₱160,000
Creditors - ₱320,000

3. Accounts Payable – ₱56,470

Capital - ₱320,100
Revenue – 124,900
Expenses - ₱79,000

III. Manang Rosa started her business, Kape Boss, near the school on March 1, 2018. She
invested ₱250,000 to finance its operation. For the month of March, below are the transactions
noted:

March 2 Manang Rosa purchased kitchen equipment worth ₱27,800.

March 7 Purchased merchandise inventories from CSI Corporation on account, ₱14,500.
March 8 Sold coffee products worth ₱16,900.
March 15 Delivered coffee products to Vega Law Firm, ₱2,300.

Required: Determine the effect of the business transactions to the accounting equation.
Use the format below.
Date ASSETS LIABILITIES EQUITY
Cash Kitchen Equipment Merchandise Inventories Accounts Payable Rosa, Capital Sales Revenue
Name: _____________________________________________________ Date: _____________

Grade/Section:____________________________________________ Score:____________

Title of the Activity: Make It Equal!

Most Essential Learning Competency: Perform operations involving simple cases with
the use of accounting equation
K to 12 BEC CG: ABM_FABM11- IIIb-c-18

Directions: Determine Tatlong Bituin Bakery’s equity for the year under each
of the following scenario.

The total assets and liabilities at the beginning and end of the year for Tatlong
Bituin Bakery are listed below: Assets
Liabilities

Beginning of the year ₱275,000 ₱78,000

End of the year 430,000 125,000
The owner made
1. no additional investment and withdrawals from the business during the year.
2. no investment but withdrew ₱15,000 for personal use during the year.
3. an investment amounting ₱80,000 and no withdrawal during the year
4. a land investment worth ₱350,000 and withdrew ₱35,900 during the year.
5. additional investment of ₱12,000 and withdrew ₱6,000 during the year.

II. Use the accounting equation to solve the following problems.

a. On May 1 2018, Celestine Vega put up her own business with a capital of ₱330,000 and
bank loan of ₱210,000. During the year, Ms. Vega invested an additional of ₱150,000 to
 the business. She withdrew ₱38,200 for her personal expense. On April 30, 2019, her
assets were ₱750,000. Determine the net loss or net income as of April 30, 2019.
b. Good Day Catering Service has equity of ₱340,000 and liabilities amounting to ₱84,500.
Net loss for the year was ₱80,000. Compute the total assets of the business.
c. If the assets are ₱280,000 and net worth is 210,000, compute the creditors claim to the
business?

III. Below information is taken from the accounting book of Vega General Services. Determine
the missing amount to show the events that occurred.

ASSETS LIABILITIES EQUITY

Cash Accounts Furniture Offi ce Accounts Notes Capital Revenus Expenses

Receivable and Fixture Supplies Payable Payable

a 150,000 1)________
b 8,900 8,900
c 2)________ 5,200
d 3)________ 12,200
e - 4,450 4)_______
f - 2,500 5)_______
g - 3,500 - 3,500
h 6)_______ 10,000
i 50,000 7)_______
j - 24,000 8)______
9)_______ 15,200 12,200 8,900 4,450 196,500 15,200 - 26,500
10)________ 11)__________
Name: _____________________________________________________ Date: _____________

Grade/Section:____________________________________________ Score:____________

Title of the Activity: Accounting Equation in Service Business

Most Essential Learning Competency: Perform operations involving simple cases with
the use of accounting equation
K to 12 BEC CG: ABM_FABM11- IIIb-c-18

Directions: Determine the element/s of the accounting which is/are

affected by the transactions below. Write your answer in the space
provided for.

Below is the transaction of Victory Dental Clinic for the month of May. Determine the effect of
each day’s transaction to the accounting equation.

1. May 1 – Dr. Dionne Dela Cruz invested ₱890,000 in the bank in the name of the business
and a medical equipment with fair market value of ₱234,000.
ASSETS = LIABILITIES + OWNER’S EQUITY
_________________ _________________
_________________
2. May 3 – Purchase clinic supplies from MediCare Clinic Instruments worth 43,000.
Issued check as downpayment, 50%. The rest on account as evidence by a promissory
note. Terms: 2/10, n/30.
ASSETS = LIABILITIES + OWNER’S EQUITY
_________________ _________________
_________________
3. May 7 – Rendered dental service to job applicants of Local Department Store receiving
P16,000.
 ASSETS = LIABILITIES + OWNER’S EQUITY
________________ _________________
4. May 8 - Rendered service to a VIP client amounting to P17,000; The customer issued a
check for P7,000 and issued a 30-day note for 50% of the balance and the other 50% was
on account. Terms of 30-day note: 2/10, n/30.

ASSETS = LIABILITIES + OWNER’S EQUITY

________________ _________________
_________________
_________________
5. May 15 - Issued check to pay salaries of employees, ₱12, 000.
ASSETS = LIABILITIES + OWNER’S EQUITY
________________ _________________
6. May 15 - Paid rent for the month, ₱5,000.
ASSETS = LIABILITIES + OWNER’S EQUITY
________________ _________________
7. May 16 – Paid the account on May 3 under Medicare Clinic Instruments in full.
ASSETS = LIABILITIES + OWNER’S EQUITY
________________ _________________
8. May 18 - Dr. Dela Cruz withdraw ₱13,000 for her personal expenses.
ASSETS = LIABILITIES + OWNER’S EQUITY
________________ _________________
9. May 20 - Received the payment in full from the VIP client in May 8.
ASSETS = LIABILITIES + OWNER’S EQUITY
________________
________________
________________
10. May 30 – Paid utilities for the month, ₱5,600.
ASSETS = LIABILITIES + OWNER’S EQUITY
________________ _________________
II. Dr. Ji Gomez, a Family Medicine specialist, owns an out-patient clinic and diagnostic center
that caters to the health needs of the community. She started her clinic amidst the pandemic
disease, COVID – 2019 and offers an affordable laboratory diagnostic center. Below are taken
from the accounting books of Dr. Ji on its first month of operation.

May 1 – Dr. Ji deposited ₱2,500,000 in a bank account established for the business.
May 2 – Purchase laboratory equipment worth ₱125,000 cash.
May 3 – Purchase laboratory supplies for ₱67,800 on account from Terrapo Pharma on account.
May 5 – Received ₱42,000 for laboratory services rendered to a private school as part of the
Annual Medical Check-up of its employees.
May 6 – Billed client ₱1,000 for services rendered.
May 8 – Paid rent expense for the month, ₱12,000.
May 10 – Withdrew ₱5,000 from the business for personal use.
May 15 – Received ₱25,000 cash for the laboratory services rendered to the employees of Minor
Basilica of Manaoag.

Required: Show the effect of each of the above transactions on the accounting equation by
completing the table below.
DATE ASSETS LIABILITIES EQUITY
Cash Accounts Laboratory Laboratory Accounts Dr. Gomez, Dr. Gomez, Service Expense
Receivable Equipment Supplies Payable Capital Withdrawal Revenue

TOTAL

III. Below information is taken from the accounting books of Venus Mart Enterprise. Develop
accounting equation from the following transactions:

  Transactions Amount

a Venus started business with cash 240,000

b Purchased inventories for cash 67,000

c Purchased inventories on credit 21,000

Sold merchandise inventories for
d cash 32,000

e Bought laptop on credit 17,000

f Paid utilities for the month 3,500

g Withdrew cash for personal use 6,000

h Paid rent for the month 5,000

i Received cash from delivered goods 54,000

Name: _____________________________________________________ Date: _____________

Grade/Section:____________________________________________ Score:____________

Title of the Activity: Accounting Equation Application

Most Essential Learning Competency: Perform operations involving simple cases with
the use of accounting equation
K to 12 BEC CG: ABM_FABM11- IIIb-c-18

Directions: Below are transactions from three (3) different business enterprises.
Determine the effect of the business transactions to the accounting equation.
Make use of a table to show your answer.

I. After passing the CPA Licensure Examination, Kimmy Espero started to practice her
profession by putting up her own accounting firm – Espero Accounting Services. The
business has the following transactions for the first month.
a. Kimmy deposited ₱250,000 cash in the bank to start the operation of the business.
b. Purchased computers and other system equipment for cash, ₱25,000.
c. Purchased computer supplies on credit, ₱12,500.
d. Received revenue from client, ₱32,000.
 e. Billed client on completion of financial report, ₱15,000.
f. Paid salaries of employees, ₱16,000.
g. Received partial payment from client billed in (e), ₱10,000.
h. Made a partial payment on computer supplies purchased in (c), ₱6,250.

II. The Beautiful Body & Soul Spa was established by Victoria Bernardo as a sole
proprietor. The following transactions were completed for its first month of operation.
a. Ms. Bernardo deposited P200, 000 in the bank in the name of the Body Beautiful
Health Spa. She also invested in spa equipment with a fair market value of
P80,000.
b. The business purchased office equipment worth P50, 000 issuing a check for
P10,000 as down payment. In addition, the business issued a promissory note for
the balance.
c. The business purchased spa supplies worth P20, 000. A promissory note was
issued for 50% and the balance was on account.
d. The business purchased office supplies worth P10, 000. 50% down payment was
made and the balance was on terms of 2/10, n/30.
e. Issued a check as payment for monthly rent, P8, 000.
f. The account in transaction (c) was paid in full.
g. Rendered service to an institutional customer amounting to P40,000. The
customer issued a check for P10,000 and the balance on account.
h. Ms. Bernardo was issued a check as withdrawal, P15, 000.

III. Following are selected transactions of BRAIN BOOSTER Book Store for the month
of March 2016.

01 Purchased second hand Delivery Van, P240,000 and issued a promissory note.
03 Purchased Store furnitures, P67,550 on credit.
05 Purchased merchandise, P155,750 on account. Terms: 3/10, n/30.
07 Sold merchandise, P83,560. Terms: 2/10, n/30.
 13 Purchased merchandise,P67,000 issuing a check in payment.
15 Sold merchandise, P52,000 cash.
23 Mr. Morgan, the business owner, withdrew cash for personal expenses, 15,000.
27 Paid salaries of employees, P23,300.

Answer Key

Simple Activity I
1. ₱380,000
2. ₱645,000
3. ₱62,200
4. ₱460,800
5. ₱349,880

Simple Activity II
Assets Liabilities Equity
Accounts Payable Capital Revenue Expenses
37,250 96,500 66,300 52,900
1. 147,150 37,250 109,900

Assets Liabilities Equity

Accounts Payable Capital Revenue Expenses Withdrawal
320,000 450,000 230,000 160,000 25,000
2. 815,000 320,000 495,000
 Assets Liabilities Equity
Accounts Payable Capital Revenue Expenses
56,470 320,100 124,900 79,000
3. 422,470 56,470 366,000

Simple Activity III.

Date ASSETS LIABILITIES EQUITY

Kitchen Accounts Rosa, Sales

Cash Merchandise
Equipment Payable Capital Revenue
Inventories
March 1, 2018 250,000 250,000
March 2, 2018 - 27,800 27,800
March 7, 2018 14,500 14,500
March 8, 2018 16,900 16,900
March 15, 2018 2,300 2,300
14,500 269,200
283,700 283,700
Moderate Activity I

1)   Assets Liabilities Equity

197,00
  Beginning 275,000 78,000 0

  End of the year 430,000 125,000  

502,00
  Total 705,000 203,000 0

2)   Assets Liabilities Equity

197,00
  Beginning 275,000 78,000 0

  End of the year 430,000 125,000  

502,00
  Total 705,000 203,000 0

  15,000
       
487,00
 0

3)   Assets Liabilities Equity

197,00
  Beginning 275,000 78,000 0

  End of the year 430,000 125,000  

  Subtotal 705,000  

  80,000    

582,00
  Total 785,000 203,000 0

4)   Assets Liabilities Equity

197,00
  Beginning 275,000 78,000 0

  End of the year 430,000 125,000  

  Subtotal 705,000  

  350,000  

852,00
  Total 1,055,000 203,000 0

  35,900

816,10
        0
 5)   Assets Liabilities Equity

197,00
  Beginning 275,000 78,000 0

  End of the year 430,000 125,000  

  Subtotal 705,000  

  12,000  

514,00
  Total 717,000 203,000 0

  6,000

508,00
        0

Moderate Activity II
a.
 Assets Liabilities Equity
84,500 340,000
- 80,000 Net Loss
344,500 84,500 260,000
b.

Assets Liabilities Equity

280,000 70,000 210,000
c.

Moderate Activity III

ASSETS LIABILITIES EQUITY
Cash Accounts Furniture Offi ce Accounts Notes Capital Revenus Expenses
Receivable and Fixture Supplies Payable Payable
a 150,000 150,000
b 8,900 8,900
c 5,200 5,200
d - 12,200 12,200
e - 4,450 - 4,450
f - 2,500 - 2,500
g - 3,500 - 3,500
h 10,000 10,000
i 50,000 50,000
j - 24,000 - 24,000
153,350 15,200 12,200 8,900 4,450 196,500 15,200 - 26,500
189,650 189,650

Challenging Activity I
ASSETS = LIABILITIES + OWNER’S EQUITY
1. CASH ₱890,000 Dela Cruz, Capital ₱1,124,000
Medical Equipment ₱234,000
2. Supplies ₱43, 000
Cash in Bank (₱21,500) Notes Payable ₱21,500
3. Cash ₱16,000 Professional Fee ₱16,000
4. Cash in Bank 7,000 Professional Fee ₱17,000
Accounts Receivable 5,000
 Notes Receivable 5,000
5. Cash in Bank (12,000) Salaries Expense (12,000)
6. Cash (5,000) Rent Expense (5,000)
7. Cash (21,500) Notes Payable (21,500)
8. Cash (13,000) Dela Cruz, withdrawal (13,000)
9. Cash ₱10,000
Accounts Receivable (5,000)
Notes Receivable (5,000)
10. Cash (₱5,600) Utilities Expense ₱5,600

Challenging Activity II

ASSET
Date S       LIABILITIES     EQUITY
Kitchen Merchandise Accounts Rosa, Sales
     
  Cash Equipment Inventories Payable Capital Revenue
March 1,
2018 250,000             250,000  
March 2, -
2018 27,800 27,800              
March 7,
2018     14,500   14,500        
March 8,
2018 16,900               16,900
March 15,
2018 2,300               2,300

      14,500     269,200
283,700   283,700

Challenging Activity III

 ASSETS LIABILITIES EQUITY
Accounts
CASH Inventories Computer Payable CAPITAL WITHDRAWAL REVENUE EXPENSES
a 240,000 240,000
b - 67,000 67,000
c 21,000 21,000
d 32,000 32,000
e 17,000 17,000
f - 3,500 - 3,500
g - 6,000 - 6,000
h - 5,000 - 5,000
i 54,000 54,000

349,500 349,500

Enrichment Activity I
ASSETS LIABILITIES EQUITY
CASH Accounts Computer Computer Accounts CAPITAL WITHDRAWAL REVENUE EXPENSES
Receivable Equipment Supplies Payable
a 250,000 250,000
b - 25,000 25,000
c 12,500 12,500
d 32,000 32,000
e 15,000 15,000
f - 16,000 - 16,000
g 10,000 - 10,000
h - 6,250 - 6,250
287,250 287,250

Enrichment Activity II
ASSETS LIABILITIES EQUITY
CASH Accounts Spa Office Spa Office Accounts Notes CAPITAL WITHDRAWAL REVENUE EXPENSES
Receivable Equipment Equipment Suplies Supplies Payable Payable
a 200,000 80,000 280,000
b - 10,000 50,000 40,000
c 20,000 10,000 10,000
d - 5,000 10,000 5,000
e - 8,000 - 8,000
f - 20,000 - 10,000 - 10,000
g 10,000 30,000 40,000
h - 15,000 - 15,000
342,000 342,000

Enrichment Activity III

 ASSETS LIABILITIES EQUITY
CASH Accounts Delivery Furniture Inventories Accounts Notes CAPITAL WITHDRAWAL REVENUE EXPENSES
Receivable Van & Fixture Payable Payable
1 240,000 240,000
3 67,550 67,550
5 155,750 155,750
7 83,560 83,560
13 - 67,000 67,000
15 52,000 52,000
23 - 15,000 - 15,000
27 - 23,300 - 23,300
560,560 560,560

References:

Florendo, J. 2016. Fundamentals of Accountancy, Business, and Management 1. Manila: Rex

Book Store, Inc.

Commission on Higher Education. 2016. Fundamentals of Accountancy, Business, and

Management 1(Teaching Guide for Senior High School). Quezon City