12

ACCOUNTANCY, BUSINESS & MANAGEMENT

FUNDAMENTALS OF ACCOUNTANCY,
BUSINESS AND MANAGEMENT 2
QUARTER 1
WEEK 4

CapSLET
Capsulized
Self - Learning
Empowerment
Toolkit
Schools Division Office of Zamboanga City
Region IX, Zamboanga Peninsula
Zamboanga City
 CapSLET
Capsulized Self - Learning Empowerment Toolkit

SUBJECT & FABM 2- GRADE 12 QUARTER 1 WEEK 4

GRADE/LEVEL
TOPIC STATEMENT OF CHANGES IN EQUITY (SCE)

CODE
LEARNING PREPARE AN STATEMENT OF CHANGES IN
COMPETENCY EQUITY FOR A SINGLE PROPRIETORSHIP ABM_FABM12-Ie-9

LEARNING To be able to:

OBJECTIVES 1. identify the elements in the Statement of Changes in Equity, and
2. prepare Statement of Changes in Equity

IMPORTANT: Do not write anything on this material. Write your answers on the learner’s activity and
assessment sheets provided separately.

UNDERSTAND
STATEMENT OF CHANGES IN EQUITY (SCE)

The Statement of Changes in Equity shows the changes in the owner’s equity during the
period. This statement shows the following:

1. Capital contribution of the owner. This includes the original investment whether in cash or other
assets and additional investments that the owner will contribute during the lifetime of the
business.

2. The comprehensive income or loss of the business. This will include the earnings of losses from
the operation of the business. If the business has a net profit (Revenue > Expenses), the capital
account will increase but if it is a net loss (Revenue<Expense), the capital account will decrease.

3. The permanent withdrawal of capital of the owner. The drawing account will record any cash or
other asset withdrawn or taken by the owner from the business for his personal use.

4. Prior period adjustments. These are errors that need to be adjusted at the beginning balanced
of the capital account. These errors happened previously but were only discovered recently.
Some errors are recorded because it is material while some error need not be recorded simply
because it will be adjusted naturally.

Example :
Mendoza Trading
Statement of Changes in Equity
For the Month Ended, March 31, 2019

Mendoza, Capital March 1, 2019 PHP 80,000

Add: Prior Adjustment resulted in
Overstated Expense PHP 5,000
Understated Revenue 10,000 15,000
Adjusted Capital, March 1, 2020 PHP95,000
Add: Additional Investment PHP20,000
2|Pa ge
 Net Profit 55,000 75,000
Total PHP170,000
Less: Mendoza, Drawing 50,000
Mendoza, Capital, March 31, 2019 PHP120,000

Let’s Practice!

Instruction: Prepare a Statement of Changes in Equity for Pedro Repair Shop.

In January 1, 2018, Pedro started his repair shop with an initial capital of PHP 30,000. During
the first quarter of operation, his shop incurred PHP 15,000 losses which lead him to invest additional
capital of PHP 20,000. Due to his hard work and perseverance his total gain for the year amounts to
PHP 50,000. Thus, he withdrew PHP 5,000 for his personal use.

REME REMEMBER MBER

Key Points

 The ending balance of the capital account shown in the Statement of Equity will be the amount
that will be recorded of the Statement of Financial Position.

 Two Parts of Statement of Changes in Equity

A. Heading
1. Name of the company
2. Name of the Statement
3. Date of Preparation

B. Body
Mendoza Trading
Statement of Changes in Equity Heading
For the Month Ended, March 31, 2019

Mendoza, Capital March 1, 2019 PHP80,000

Add: Prior Adjustment resulted in
Overstated Expense PHP5,000
Understated Revenue 10,000 15,000
Adjusted Capital, March 1, 2020 PHP95,000
Body
Add: Additional Investment PHP 20,000
Net Profit 55,000 75,000
Total PHP 170,000
Less: Mendoza, Drawing 50,000
Mendoza, Capital, March 31, 2019 PHP 120,000

 To aid in the preparation of Statement of Changes in Equity, it is beneficial to use MS Excel or

google spreadsheet. It helps one in organizing the information and performs calculation with
scalable entries.

 Forms of Business Organization

3|Pa ge
 A. Sole or Single Proprietorship
 It is owned and managed by an individual
B. Partnership
 its formation is based on agreement to contribute money property and industry to
a common fund with the intention of dividing the profits and losses among
themselves
C. Corporation
 It is an artificial being created by law. Its owners are called stockholders.

Example for Partnership and Corporation:

Mabuhay Company
Statement of Changes in Partner's Equity
For the Year Ended, December 31, 2019

Investor A investor B Total

Capital January 1, 2019 PHP 100,000 PHP 100,000 PHP200,000
Add: Additional Investment 20,000 10,000 30,000
Net Profit 25,000 25,000 50,000
Total PHP 145,000 PHP 135,000 PHP280,000
Less: Withdrawal 50,000 45,000 95,000
Capital, December 31, 2019 PHP 95,000 PHP 90,000 PHP185,000

TRYRY

Let’s see how much have you learned today!

Instruction: Please prepare Statement of Changes In Equity in good form

Assessment 1

Assume that the company started the year 2019 with PHP 100,000 capital. During the year,
the owner made PHP 10,000 additional contributions and PHP 20,000 total withdrawals. (10 pts.)

Assessment 2

The following balances were retrieved from the records of DJ’s Janitorial Services for the year
ended December 31, 2018: (10 pts)
Capital, January 1, 2018 PHP 500,000
Withdrawals 100,000
Additional Investment 50,000
Net Loss 45,000

4|Pa ge
 Assessment 3

The following balances were recorded in the books of DUI Shop for the month of May 2020:
(10 pts)
Additional Investment PHP 50,000
Drawings 30,000
Initial Capital 80,000
Net Profit 35,000
Overstated Supplies
Expense 15,000

2016. “Teaching Guide for Senior High.” FUNDAMENTALS OF ACCOUNTANCY, BUSINESs

AND MANAGEMENT 2. Quezon City:Commision on Higher Education

REFERENCE/S Abasta, Dolly V, CPA, MBA.2020. FUNDAMENTALS OF ACCOUNTANCY, BUSINESS AND

MANAGEMENT 2 : A MODULE TO BABM 12: . Olonggapo City: Columban College,Inc.

This learning resource contains copyrighted materials. The use of which has not
been specifically authorized by the copyright owner. We are making this learning
resource in our efforts to provide printed and e-copy learning resources available
DISCLAIMER for the learners in reference to the learning continuity plan of this division in this
time of pandemic.
This LR is produced and distributed locally without profit and will be used for
educational purposes only. No malicious infringement is intended by the writer.
Credits and respect to the original creator/owner of the materials found in this
learning resource.

Written by:
Divina V. Larracochea
Teacher II
Ayala National High School- Senior High School

5|Pa ge
 ANSWER KEY
Let’s Preactice
 80,000
Assessment
 90,000
 405,000
 150,000

6|Pa ge
 Republic of the Philippines
Department of Education
Division of Zamboanga City

EVALUATION TOOL FOR CONTENT AND LAYOUT & DESIGN

CAPSULIZED SELF-LEARNING EMPOWERMENT TOOLKIT (CapSLET)

Learning Area: FABM 2 Grade 12

Level
Title STATEMENT OF CHANGES IN EQUITY (SCE)
Quarter FIRST
Week 4
Learning Competency Prepare an SCE for a single proprietorship. (ABM_FABM12-Ie-9)

Instructions:

1. Read carefully the learning resource (LR) page by page to evaluate the LR for compliance to standards
indicated in the criterion items under each factor below.
2. Put a check mark (/) in the appropriate column beside each criterion item. If your answer is NO, cite
specific page/s, briefly indicate the errors found, and give your recommendations in the attached Summary
of Findings form.
3. Write Not Applicable (NA) for criterion items that do not apply in the LR evaluated.

Standards /Criterion Items Yes No

CONTENT
Factor I. Intellectual Property Rights Compliance
1. The learning resource has no copyright violations. √
2. The copyrighted texts and visuals used in the LR are √
cited.
3. The copyrighted materials used in the LR are accurately √
cited.
4. The references are properly cited in the Reference/s box √
using the DepEd LR Referencing Guide.
Note: At least 3 criterion items must be marked YES to Complied Not Complied
indicate compliance to this factor. √
Factor II. Learning Competencies √
1. Content is consistent with the targeted DepEd Most √
Essential Learning Competencies (MELCs) intended for
the learning area and grade level.
2. The MELC is subtasked into learning objectives based √
on the Compressed Curriculum Guide Syllabus (CCGS)
of a specific learning area.

Note: These 2 criterion items must be marked YES to Complied Not Complied
indicate compliance to this factor. √
Factor III. Instructional Design and Organization
1. The LR contributes to the achievement of specific √
objectives of the learning area and grade level for which
it is intended.
2. Sequencing of contents and activities from √
UNDERSTAND, REMEMBER and TRY within each
lesson facilitates achievement of objectives.
3. Content is suitable to the target learner’s level of √
development, needs, and experience.
7|Pa ge
 4. Content reinforces, enriches, and / or leads to the √
mastery of the targeted learning competencies intended
for the learning area and grade level.
5. The LR develops higher cognitive skills (e.g., critical √
thinking skills, creativity, learning by doing, problem
solving) and 21st century skills.
6. The LR enhances the development of desirable values
and traits such as: (Mark the appropriate box with an
“X” applicable for values and traits only)

Note: At least 5 criterion items must be marked YES to Complied Not Complied
indicate compliance to this factor. √
Factor IV. Instructional Quality
1. Content and information are accurate. √
2. Content and information are up-to-date. √
3. The LR is free from any social content violations. √
4. The LR is free from factual errors. √
5. The LR is free from computational errors (if applicable) √
6. The LR is free from grammatical errors. √
7. The LR is free from typographical errors. √
Note: At least 6 criterion items must be marked YES to Complied Not Complied
indicate compliance to this factor. √
Factor V. Assessment
1. The LR provides useful measures and information that √
help the teacher evaluate learner’s progress in mastering
the target competencies.
2. Assessment aligns with the learning competency/ies. √

3. Assessment provides clear instructions in the TRY √

section.
4. Assessment provides correct answer/s. √
Note: All criterion items must be marked YES to indicate Complied Not Complied
compliance to this factor. √
Factor VI. Readability
1. Vocabulary level is adapted to target users’ experience √
and understanding.
2. Length of sentences is suited to the comprehension level √
of the target user.
3. Sentences and paragraph structures are varied and √
appropriate to the target user.
4. Lessons, instructions, exercises, questions, and activities √
are clear to the target user.
5. The LR provides appropriate mother tongue for the √
target user.
Note: At least 4 criterion items must be marked YES to Complied Not Complied
indicate compliance to this factor √
LAYOUT AND DESIGN
Factor I. Physical Attributes
1. All necessary elements are complete. √
8|Pa ge
 2. Cover elements are correct and complete. (i.e., w/ grade √
indicator & learning area, CapsLET title, quarter,
headings, division tagline)
3. The CapsLET follows the prescribed learning area color. √
4. The LR observes correct pagination. √
5. Contains accurate learning competency and code. √
Note: All criterion items must be marked YES to indicate Complied Not Complied
compliance to this factor √
Factor II. Layout and Design
1. The LR follows the prescribed CapsLET template. √
(maximum of 10 pages and minimum of 3 pages)
2. The LR follows the prescribed CapsLET paper size √
(long bond paper - 21.59cm x 33.02cm).
Note: All items be marked YES to indicate compliance to this Complied Not Complied
factor.
√
Factor III. Typographical Organization
1. The LR uses appropriate font size (12 or 14) and styles √
(Calibri Body, Arial or Times New Roman).
2. The LR follows the rules in the use of boldface and √
italics.
Note: All criterion items must be YES to indicate compliance Complied Not Complied
to this factor. √
Factor IV. Visuals
1. It contains visuals that illustrate and clarify the concept. √
2. It has images that are easily recognizable. √
3. Layout is appropriate to the child. √
4. Text and visuals are properly placed. √
Note: All criterion items must be marked YES to indicate Complied Not Complied
compliance to this factor. √

Recommendation: (Please put a check mark (/) in the appropriate box.)

Minor revision. This material is found compliant to the minimum requirements in all six factors. Revision based
on the recommendations included in the Summary of Content Findings form and LR with marginal notes must be
implemented.

Major revision. This material is non-compliant to the requirements in one or more factors. Revision based on the
recommendations included in the Summary of Content Findings form and LR with marginal notes must be
implemented.

√ For field validation. This material is found compliant to all factors with NO corrections.

I certify that this evaluation report and the recommendation(s) in the summary report are my own and have been
made without any undue influence from others.

Name Signature
Evaluators:
Ivonneh M. Homboy
Team Leader

Erlinda Campos

Ritchie C. Basilio

Date Accomplished August 13, 2020 August 13, 2020

9|Pa ge
 Note:
. This tool is anchored on the Guidelines in ADM Content Evaluation, Guidelines in ADM
Layout Evaluation and Level 2 DepEd Evaluation Rating Sheet for 2 DepEd Evaluation Rating
Sheet for Story Books and Big Books.

10 | P a g e
 Summary of Content Findings, Corrections and Review for Locally Developed
CapSLET

Title of the STATEMENT OF CHANGES IN EQUITY (SCE) Grade Level 12

CapSLET:
Quarter FIRST
Week 4

Part of the Put a check mark

CapSLET/ Brief description Specific recommendations for
Paragraph / of Errors/ improving the identified
Line / Page Findings/ criterion
number (in Observations Not
Implemented
chronological Implemented
order)
Page 3 Let’s Practice Emphasize that the standard way
(DL) to write Philippine Peso is PHP not √
P not unless you have the symbol
₱. Because in the international
currency P is not recognize and not
being used in trading currency.
The Philippine Peso has the
currency abbreviation PHP and
frequently goes by the symbol ₱.
Page 3 Key Points As much as possible present
(DL) examples or ask students to use √
excel, google spreadsheet and PDF
format to present their computation
in ledger account template. So they
may be abreast in the early stage to
use of account ledger to present
their computation.

Legend: (Type of Error) C - Content, L – Language, DL – Design and Layout

Other Findings: Write additional comments and recommendations not captured in the evaluation tools used.

Date accomplished:
Prepared by:

August 13, 2020

Ivonneh M. Homboy
Team Leader
(Signature Over Printed Name)

11 | P a g e
12 | P a g e