FUNDAMENTALS in ACCOUNTANCY BUSINESS MANAGEMENT 2

GRADE 12

STATEMENT OF FINANCIAL POSITION (SFP)

WK 1

CONTENT STANDARD

The learner demonstrates an understanding of

- account titles under the assets, liabilities, and capital accounts of the Statement of Financial Position, namely, cash, receivables, 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

PERFORMANCE STANDARD

The learner is able to decide on suitable quantitative research in different areas of interest.

• solve exercises and problems that require preparation of an SFP for a single proprietorship with proper classification of accounts as current
and noncurrent using the report form and the account form

What I need to know

LEARNING COMPETENCIES

The learners:

1.identify the elements of the SFP and describe each of them. ABM_FABM12- Ia-b-1

2. 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

What I know

LEARNING TASK 1a

• Prepare a Personal SFP:

get a 1piece of bond paper

write their current savings and everything that they own (clothes, pen, pencil, etc.)

write the amount that they owe their friends, family members, parents (tuition)

deduct the amount they owe from the amount they own

Associate amounts owned with assets and amount owed with liabilities with the net amount as equity

What’s New

Differentiate the Report Form and Account Form

• Report Form – A form of the SFP that shows asset accounts first and then liabilities and owner’s equity accounts after. (Haddock, Price, &
Farina, 2012). The balance sheet shown earlier is in report form.

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• Account Form – A form of the SFP that shows assets on the left side and liabilities and owner’s equity on the right side just like the debit
and credit balances of an account. (Haddock, Price, & Farina, 2012)

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What In:

LEARNING TASK 1b

Instructions: Choose the answer from the choices that corresponds for each of the question provided below: Write letter only of the best letter.

Accounting equating Expenses

Financial Statement Journalizing

Liabilities Journal

Income Ledger

Assets Posting to ledger

_________ 1. The book of original entry.

_________ 2. Assets are equal to liabilities and owner’s equity.

_________ 3. Users of accounting information is mostly communicated

__________4. Are what the company owns.

__________5. Are what the company owed.

_________ 6. Inflows of cash because of services rendered.

_________ 7. Assets from cash spent because of sales of goods.

_________ 8. The second accounting cycle.

_________ 9. Is called the book of the final entry.

________ 10.is the next cycle after journalizing.

What’s More :

Learning Task 2

Independent Activity 1.1 (Critical Thinking and Communication)

This time, I want you class to do the following task alone. Make sure to answer them correctly.

Instructions: Choose the answer that corresponds for each of the question provided below: Write letter only of the best letter.

1. Information about the revenue and expenses is provided by

a. Statement of changes in equity

b. Statement of Cash Flow

c. Statement of Financial position

d. Statement of performance

2. Information on changes in Assets, Liabilities and Owners Equity account

a. Statement of changes in equity

b. Statement of Cash Flow

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 c. Statement of Financial position

d. Statement of performance

3. Cash, Cash Equivalents, merchandise inventory are classified as

a. Current Liability

b. Current Asset

c. Long Term Liability

d. Owner’s Equity

4. The following are examples of contra asset account except

a. Accumulated depreciation- Equipment

b. Accumulated depreciation-Building

c. Bad debt Expense

d. Allowance for Bad Debts

5. The elements of financial Statements are

I Assets IV Income II Liability V Expenses III Equity

a. I, II, IV, V b. I, II, III

c. IV, V, I d. I, II, III, IV, V

What Can I do:

Learning Task 3a

Instructions: Prepare a Statement of Financial Position using the following accounts (one in report form and one in account form):

Cash – 5,000

Loans Payable – 77,500

Accounts Receivable – 2,600

Supplies – 2,300

Equipment – 17,000

Owner’s equity – 40,000

Accounts Payable – 22,400

Building – 113,000

Note: Learners can use any business name and the end of the current year for the heading.

Learning Task 3b

Instruction: Prepare a Statement of Financial Position for the company in report form.

You were hired by Mr. Apollo Alcazar, the owner of ALCATWIN, he wants you to prepare his sari-sari store’s Statement of Financial Position. In
order to prepare the statement, you identified the following assets and liabilities of Mr. Alcazar.

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 • His sari-sari store has cash deposited in a bank account amounting to P50,000

• His sari-sari store had a lot of uncollected sales from customers amounting to P75,000

• The total amount of merchandise left inside the store is P30,000

• He already paid one year’s rent in advance amounting to P12,000

• The value of all the company’s furniture amounted to P100,000

• He bought merchandise from his supplier amounting to P25,000 and the supplier agreed that payment can be made 2 months after year-
end

• SSS, Philhealth and Pag-ibig Payables for his one employee totaled P5,000

• The sari-sari store had outstanding liabilities to utility companies amounting to P3,000

• He had a loan from the bank amounting to P50,000 to be paid in 3 years

What I Have Learned :

Statement of Financial position is one of the Financial reports submitted by the company to the users of information such as banks and
other financial institutions. They are called permanent because of their existence is continuous and the balance is forwarded to the next accounting
period. The elements of financial position are assets, liabilities and owner’s equity account. The kinds of Assets are Current and Non-Current
while the kinds of liabilities are Current and Long-Term Liabilities. Under current assets are cash, receivables, Inventories and prepaid expenses.
Non-current assets include Land, Building Equipment and furniture and their accumulated depreciation. While for Current Liabilities includes
Accounts Payables and Notes Payable and for the Long-Term Liabilities.

What I Need to Reflect

You must buy only the important and the basic needs of the family or buy assets that has economic benefit in the future, when you don’t
have cash do not borrow money just to acquire it. However, if you have more than enough for your family, why not think of donating something for
the less fortunate specifically this pandemic situation.

Assessment
Learning Task 4

Instructions: Compute for the missing amount of the account titles taken from the SPF of independent company .

_______1. Assets are Php 27,000 and owner's equity is Php15,000, liabilities?

_______2. At the end of the first month of operations for TMAM Transportation, the business had the following accounts: Accounts Receivable,
Php2,800; Prepaid Insurance, Php700; Equipment, Php85,500 and Cash, Php75,550. On the same date, TMAM owed the following creditors: Mely’s
Supply Company, Php8,000; Mark’s Equipment, Php19,500. The current assets for the Juana’s Delivery Service is

_______3. At the end of the first month of operations for Mary Anne’s, the business had the following accounts: Accounts Receivable, Php4,800;
Prepaid Insurance, Php15,000; Equipment, Php68,200 and Cash, Php40,650. On the same date, Juana owed the following creditors: Bonny Supply
Company, Php42,000 (due in 6 months); Maria’s Equipment, Php90,500 (due after 2 years). Current liability is

_______4. If during the year total assets increase by Php85,000 and total liabilities decrease by Php15,000, by how much did owner's equity
increase/decrease?

------------5.Using the following accounts Cash – 15,000 Loans Payable – 77,500 Accounts Receivable – 6,300, Inventory- 7,400 Supplies –
4,200Equipment – 52,000 Owner’s equity – 98,000 Accounts Payable – 22,400 Building – 113,000. How much is the total assets and Total
Liabilities and Owner’s Equity?

REFERENCE

Teaching Guide in Senior High School Fundamentals of Accountancy Business and Management 2, donated by the Commission on
Higher Education in Collaboration with the Philippine Normal University to Department of Education

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