12

ACCOUNTANCY, BUSINESS & MANAGEMENT

FUNDAMENTALS OF ACCOUNTANCY,
BUSINESS & MANAGEMENT 2
QUARTER 1
WEEK 3

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 3

GRADE/LEVEL
TOPIC STATEMENT OF COMPREHENSIVE INCOME (SCI)

LEARNING 1. PREPARE AN SCI FOR A SERVICE CODE

COMPETENCY BUSINESS USING THE SINGLE-STEP
APPROACH ABM_FABM12-Ic-d-6
2. PREPARE AN SCI FOR A ABM_FABM12-Ic-d-7
MERCHANDISING BUSINESS USING THE
MULTI-STEP APPROACH
LEARNING To be able to:
OBJECTIVES 1. differentiate the single-step approach from multi-step approach SCI,
and
2. prepare the SCI using the single-step approach and the multi-step
approach.
IMPORTANT: Do not write anything on this material. Write your answers on the learner’s activity and
assessment sheets provided separately.

UNDERSTAND
Statement of Comprehensive Income (SCI)

Recall

The main difference of the Statements of the two types of business lies on how they generate
their revenue. A service company provides services in order to generate revenue and the main cost
associated with their service is the cost of labor which is presented under the account Salaries Expense.
On the other hand, a merchandising company sells goods to customers and the main cost associated
with the activity is the cost of the merchandise which is presented under the line item Cost of Goods
Sold. In presenting these items on the Statement of Comprehensive Income, a service company will
separate all revenues and expenses (as seen in the single-step format) while a merchandising company
will present total sales and cost of goods sold on the first part of the statement which will net to the
company’s gross profit before presenting the other expenses which are classified as either
administrative expenses or selling expenses (as seen in the multi-step format).

Differentiate the single-step and multi-step format of the SCI?

Single-step – Called single-step because all revenues are listed down in one section while all
expenses are listed in another. Net income is computed using a “single-step” which is Total Revenues
minus Total Expenses. (Haddock, Price, & Farina, 2012)
Multi-step – Called multi-step because there are several steps needed in order to arrive at the
company’s net income. (Haddock, Price, & Farina, 2012)
a. Emphasize that the two are only formats and will yield the same amount of net income/loss
b. Discuss that single-step SCI is more commonly used by service companies while multi-step
format is more commonly used by merchandising companies.

2|Pa ge
 Example of a Single –Step Approach SCI
HAPPY SELLING COMPANY
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 2016

Net Sales PHP 460,000.00

Cost of Goods Sold ( 285,000.00 )
Gross Profit PhP 175,000.00

General & Administrative Expenses

Salaries Expense (PHP 20,000.00 )
Rent Expense ( 15,000.00 )
Depreciation Expense ( 10,000.00 )
Utilities Expense ( 5,000.00 )
Miscellaneous Expense ( 1,000.00 ) ( 51,000.00 )

Selling Expenses
Salaries Expense PHP( 10,000.00 )
Rent Expense ( 8,000.00 )
Depreciation Expense ( 7,000.00 )
Utilities Expense ( 6,000.00 ) ( 31,000.00 )

Net Income PHP 93,000.00

Example of a Multi –Step Approach SCI

HAPPY SELLING COMPANY
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 2016

Sales PHP 500,000.00

Less: Sales Returns PHP 30,000.00
Sales Discounts 10,000.00 40,000.00
Net Sales PHP 460,000.00
Less: Cost of Goods Sold
Beginning Inventory PHP 250,000.00
Net Cost of Purchases
Purchases PHP 100,000.00
Less: Purchases Returns PHP 20,000.00
Purchases Discounts 10,000.00 30,000.00
Net Purchases PHP 70,000.00
Freight In 15,000.00 85,000.00
Cost of Goods Available for Sale PHP 335,000.00
Less: Ending Inventory 50,000.00 285,000.00
Gross Profit PHP 175,000.00
Less: Operating Expenses
General & Administrative Expenses
Salaries Expense PHP 20,000.00
Rent Expense 15,000.00
Depreciation Expense 10,000.00
Utilities Expense 5,000.00
Miscellaneous Expense 1,000.00 PHP 51,000.00
Selling Expenses
Salaries Expense PHP 10,000.00
Rent Expense 8,000.00
Depreciation Expense 7,000.00
Utilities Expense 6,000.00 31,000.00 82,000.00
Net Income PHP 93,000.00

3|Pa ge
i. First part is sales
This is the total amount of revenue that the company was able to generate from selling products

ii. Second part compose of contra revenue – called contra because it is on the opposite side of the
sales account. The sales account is on the credit side while the reductions to sales accounts are on the
debit side. This is “contrary” to the normal balance of the sales or revenue accounts. (Haddock, Price,
& Farina, 2012)

ii.i. Sales returns – This account is debited in order to record returns of customers or allowances
for such returns.(Haddock, Price, &
Farina, 2012) Sales returns occur when customers return their products for reasons such as but not
limited to defects or change of preference.
ii.ii.Sales discount – This is where discounts given to customers who pay early are recorded.
(Haddock, Price, & Farina, 2012) Also known as cash discount. This is different from trade discounts
which are given when customers buy in bulk. Sales discount is awarded to customers who pay earlier
or before the deadline.

iii. Sales less Sales returns and Sales discount is Net Sales

iv. Third part is Cost of Goods Sold – This account represents the actual cost of merchandise that the
company was able to sell during the year. (Haddock, Price, & Farina, 2012)

iv.i. Beginning inventory – This is the amount of inventory at the beginning of the accounting
period. This is also the amount of ending inventory from the previous period.
iv.ii.Net Cost of Purchases = Purchases + Freight In
iv.ii.i.Net Purchases = Purchases – (Purchase discount and purchase returns)
iv.ii.i.i.Purchases – amount of goods bought during the current accounting period.
iv.ii.i.ii.Contra Purchases –An account that is credited being “contrary” to the normal balance
of Purchases account.
iv.ii.i.ii.i.Purchase discount – Account used to record early payments by the company to the
suppliers of merchandise. (Haddock, Price, & Farina, 2012)
This is how buyers see a sales discount given to them by a supplier.
iv.ii.i.ii.ii.Purchase returns – Account used to record merchandise returned by the company
to their suppliers. (Haddock, Price, & Farina,2012) This is how
buyers see a sales return recorded by their supplier
iv.ii.ii. Freight In – This account is used to record transportation costs of merchandise
purchased by the company. (Haddock, Price, & Farina, 2012) Called freight in because this is recorded
when goods are transported into the company.
iv.iii. Add Beginning inventory and Net cost of Purchases to get Cost of Goods Available for
Sale
iv.iv. Ending inventory – amount if inventory presented in the Statement of Financial Position.
Total cost of inventory unsold at the end of the accounting cycle.

v. Sales less Cost of Goods Sold is Gross Profit

vi. Fourth Part is General and Administrative Expenses –These expenses are not directly related to
the merchandising function of the company but are necessary for the business to operate effectively.
(Haddock, Price, & Farina, 2012)

vii. Fifth Part is Selling Expenses – These expenses are those that are directly related to the main
purpose of a merchandising business: the sale and delivery of merchandise. This does not include cost
of goods sold and contra revenue accounts. (Haddock, Price, & Farina, 2012)

viii. Gross Profit less General and Administrative Expenses less Selling Expenses is Net Income for a
positive result while Net Loss for a negative result.

4|Pa ge
 Let’s Practice!

SAQ-1- Instruction : Create a Single – Step Approach SCI given the situation.

During October, a sari-sari store had the following transactions involving revenue and
expenses. Did the firm earn a net income or incur a net loss for the period? What was
the amount?
Paid PHP1,200 for rent
Provided services for PHP2,750 in cash
Paid PHP250 for telephone service
Provided services for PHP1,900 on credit
Paid salaries of PHP1,675 to employees
Paid PHP350 for office cleaning service

SAQ-2- Instruction: Compose 30 to 40- word paragraph to answer the question.

What are the advantages of Single – step approach SCI vs. the advantages of a Multi –
step approach SCI? What are their disadvantages?

RE REMEMBERMBER
Key Points
Forms of SCI

Single-step form- to be used in

Multiple-step form- to be used in
service concern or
merchandising business under
merchandising business under
“periodic inventory system ‘.
“perpetual inventory system ‘.

The Statement of Comprehensive Income, tells us whether the business makes profit or incurs
a loss.

Revenue is bigger Revenue is

lesser

Cost & Cost & Expenses

Expenses less Greater

Profit Incur (Losses Incur)

5|Pa ge
 If the business makes profits, the following series of questions can be asked.
 What cost can I cut down to maximize profit?
 Can I afford to hire additional employees?

Temporary Accounts – Also known as nominal accounts are the accounts found under the SCI. They
are called such because at the end of the accounting period, balances under these accounts are
transferred to the capital account, thus having only temporary amounts and resulting to zero beginning
balances at the beginning of the following year. (Haddock, Price, & Farina, 2012) Examples of
temporary accounts include revenues, sales, utilities expense, supplies expense, salaries expense,
depreciation expense, interest expense among others.

TRY
Let’s see how much have you learned today!

Assessment 1.

Instruction: Show your solution in good form.

Easy: (2 pts. Each)

1. Learning is Fun Company generated revenues amounting to ₱ 100,000. Expenses for the year
totaled ₱76,000. How much is the company’s net income for the year?

2. Happy Selling Company’s salaries to sales agents amounted to ₱ 10,000. Salaries of accountants
amounted to ₱ 20,000. No other expenses were incurred. How much is the company’s general
and administrative expense?
.
Medium: (3 pts. each)
1. Happy Selling’s beginning inventory amounted to ₱250,000. Net purchases amounted to ₱70,000.
Freight In totaled ₱15,000. Compute for the company’s cost of goods available for sale.

2. Happy Selling’s Sales amounted to ₱ 500,000. Sales returns and sales discounts amounted to
₱30,000 and ₱ 10,000 respectively. Purchases of the company totaled ₱ 100,000 while purchase
returns and purchase discounts amounted to ₱ 20,000 and ₱ 10,000 respectively. How much is the
company’s Net Sales? Net Purchases?

Difficult: (5 pts. each)

1. Company’s Cost of Goods Sold amounted to ₱ 285,000. Net cost of purchases totaled Php 85,000.
Beginning inventory amounted to ₱ 250,000. Sales amounted to ₱ 500,000. Compute for the
company’s Ending Inventory.

2. Gross profit of Happy Selling amounted to ₱ 175,000. Beginning Inventory totaled ₱ 250,000.
Ending Inventory amounted to ₱ 50,000 while Net Cost of Purchases totaled ₱ 85,000. Compute for
Happy’s Net Sales.

6|Pa ge
 Assessment 2.

1. Prepare a single-step Statement of Comprehensive Income using the following:

Amounts are all in Philippine Peso (PHP)
Revenues – 20,000
Rent expense – 3,000
Salaries expense – 4,000
Utilities expense – 2,000
Learners can use any business name and the end of the current year for the heading

2. Prepare a multi-step Statement of Comprehensive Income using the following:

The following data were taken from records of Jerardo Munoz for the month of June 2020. It
uses periodic inventory system.

Account Titles May 31 June 30

Merchandise Inventory PHP 160,0000 PHP 120,000
Sales 480,000
Sales Returns & Allow. 10,000
Purchases 250,000
Purchases Discounts 6,000
Freight -In 8,000
Taxes & Licenses- 12,000
Selling
Uncollectible Accounts- 15,000
Selling
Depreciation- General 35,000
Sales Salaries -Selling 20,000

Learner is graded based on the following criteria:

Criteria Pts
Accuracy 20
Completeness/Presentation 10
Timeliness 5
Total 35

7|Pa ge
 •Haman, Edward A. “Statement of Comprehensive Income vs. Income
Statement.” legalzoom.com, June 28, 2019.
REFERENCE/S https://www.legalzoom.com/articles/statement-of-comprehensive-income-vs-
incomestatement?fbclid=IwAR3ZodsJ0kjngpF_o22TQOd4FOwPxrXpMTybkGY-
JA6WCWQzvPYIOObSUnA.

• Rabanal, Gian Paulo. “Fundamentals of abm2 Statement of Comprehensive

Income Abm Specialize...” LinkedIn SlideShare, December 10, 2017.
https://www.slideshare.net/GianRabanal/fundamentals-of-abm2-statement-of-
comprehensive-income-abm-specialized-subject?fbclid=IwAR38L2y7zF6PpMlc
ZWM-cyYD9KyBy4KfRconAvXJ8N3_hRu43U7k8JuPcGU

2016. “FUNDAMENTALS OF ACCOUNTANCY, BUSINESs AND MANAGEMENT

2.”Teaching Guide for Senior High. Quezon City:Commision on Higher
Education

Lopez, Rafael M. 2017-First Edition.FUNDAMENTALS of Accountancy, Business

& Management 2 .Davao City: MS LOPEZ Printing & Publishing

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:

MARK ANTHONY E. TUBLE

Teacher I
Zamboanga City High School – Integrated Senior HS

8|Pa ge
 Answer Key

Assessment 1

Solve the following problems:

Easy:
1. Learning is Fun Company generated revenues amounting to ₱ 100,000. Expenses for the year totaled
₱76,000. How much is the company’s net income for the year?
Answer: ₱24,000.
2. Happy Selling Company’s salaries to sales agents amounted to ₱10,000. Salaries of accountants amounted
to ₱20,000. No other expenses were incurred. How much is the company’s general and administrative expense?
Answer: ₱20,000.

Medium:
1. Happy Selling’s beginning inventory amounted to ₱250,000. Net purchases amounted to ₱70,000. Freight In
totaled ₱15,000. Compute for the company’s cost of goods available for sale.
Answer: ₱335,000.
2. Happy Selling’s Sales amounted to ₱ 500,000. Sales returns and sales discounts amounted to ₱30,000 and
₱10,000 respectively. Purchases of the company totaled ₱100,000 while purchase returns and purchase
discounts amounted to ₱20,000 and ₱10,000 respectively. How much is the company’s Net Sales? Net
Purchases?
Answer: Net sales - ₱460,000; Net Purchases - ₱70,000

Difficult
1. Company’s Cost of Goods Sold amounted to ₱285,000. Net cost of purchases totaled Php ₱85,000. Beginning
inventory amounted to ₱ 250,000. Sales amounted to ₱500,000. Compute for the company’s Ending Inventory.
Answer: ₱50,000.
2. Gross profit of Happy Selling amounted to ₱175,000. Beginning Inventory totaled ₱250,000. Ending Inventory
amounted to ₱ 50,000 while Net Cost of Purchases totaled ₱ 85,000. Compute for Happy’s Net Sales.
Answer: ₱460,000

Assessment 2

1. Prepare a single-step Statement of Comprehensive Income using the following:

Revenues – 20,000
Rent expense – 3,000
Salaries expense – 4,000
Utilities expense – 2,000
Learners can use any business name and the end of the current year for the heading.
Answer:

9|Pa ge
 2. Net Income of PHP96,000

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 Level: 12

Title: STATEMENT OF COMPREHENSIVE INCOME (SCI)
Quarter: First
Week: 3
Learning Competency: Prepare an sci for a service business using the single-step approach
ABM_FABM12-Ic-d-6
Prepare an sci for a merchandising business using the multi-step approach
ABM_FABM12-Ic-d-7

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 does 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
indicate compliance to this factor. Complied

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

indicate compliance to this factor. Complied

Factor III. Instructional Design and Organization

10 | P a g e
 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.
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

indicate compliance to this factor. Complied

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
indicate compliance to this factor. Complied

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
compliance to this factor. Complied

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.

11 | P a g e
 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
indicate compliance to this factor Complied

LAYOUT AND DESIGN

Factor I. Physical Attributes
1. All necessary elements are complete. ∕
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
compliance to this factor Complied

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
factor. Complied

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
to this factor. Complied

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
compliance to this factor. Complied

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.

12 | P a g e
 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/s Signature/s

Evaluator/s: IVONNEH M. HOMBOY _______________________

RICHIE C. BASILIO ________________________

DIVINA V. LARRACOCHEA ________________________

Date accomplished: August 27, 2020

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.
.

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

Title of the CapSLET: STATEMENT OF COMPREHENSIVE INCOME Grade Level: 12

Quarter: First
Week: 3
Part of the Brief Specific Put a check mark
CapSLET/Paragraph description of recommendations
/ Line / Page number Errors/ for improving the
(in chronological Findings/ identified criterion
order) Observations Not
Implemented
Implemented

Understanding, Inconsistency Apply the Arial ∕

Remembering, Try of font style 12 as font style
and size (DL) and size
Illustrative Incorrect Use Excel to ∕
Examples computation correct the total
(C ) and presentation
Affixing of Observe the ∕
peso sign and technical details
other in accounting
technical presentation
details ( C )

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.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________

Prepared by: Date accomplished:

14 | P a g e
 August 27, 2020
IVONNEH M. HOMBOY
(Signature Over Printed Name)

15 | P a g e