Detailed Lesson Plan

In
Fundamentals In ABM 2
(Grade 11 – STEM/ABM)
Mr. Glenn V. Ferolino, LPT
I. Objectives
At the end of the lesson, students should be able to:
• define journalizing;
• identify transactions that needs to be journalized
• determine the effects of the journal entries to the assets, liabilities, owner’s equity,
income and expenses; and
• Appreciate the business transactions to forecast the profits and losses of the said
business.

II. Subject Matter

Journalizing
Reference: Basic Accounting Made Easy by Win Lu Ballada, CPA,
Values to be Integrated: Trust
Instructional Materials: MS Powerpoint, Google Meet

III. Procedure
 Teacher’s Presentation Students’ Response

Class Routine

Okay. Let’s pray first (will call the Class Amen!

President)

Good Morning Grade 12! Good Morning Sir Glenn!

Before we proceed, , Class Secretary, how Everybody is present today Sir!

the attendance today?

Good to hear that everyone is here! How’s We are okay sir. Done reviewing for Third
your day? periodical test.

Oh! That’s nice. Seeing you today giving

me also an energy to teach you a new
lesson!

A. Motivation / Review

Before we start our lesson, let’s have the Okay Sir!

recap of what we discussed last week about
sole proprietorship and its Advantages and (Discussion about Sole Proprietorship and
Disadvantages. Again, what is Sole its Advantages and Disadvantages)
Proprietorship?

B. Preparation

I have here a quick game for the start of our That’s cool Sir! Sure, can’t wait to start!
class. This game is very familiar because of
the known app called Name the Logo. I have
here the different logos of different
companies and all you need to do is name
the company of the said logo. Once correct,
you will get additional points on the
seatwork. Agree?

1. Warner Bros

2.
Mc Donald’s
3.
Microsoft

4.
Apple

5. Twitter

Very good! I know that you will clear all the Thank you, Sir, we will!
items of this game. Later, don’t forget to put
your additional marks on your notebook for
our seatwork.

C. Discussion

Since we are done in the introduction of the Yes Sir. Journalizing is a process of
business, as ABM students or future recording a transaction.
businessman or entrepreneur, or
accountant, we need to know how check the
accounting flows of the business. It is
necessary for us to understand how the
business works by merely checking its
financial positions especially the balance
sheet and income statement. But, in order
for us to know that, is we need to know first
how the journalize every transaction that
the business will encounter in one
accounting cycle, Kindly read first the
definition of journalizing, (will call one
student)

Exactly! Thank you (name of the student).

Journalizing

Journalizing is very important process in Sir, what is journal entry?

accounting cycle. It deals in the series of
recording of recent transactions occur in
the business. Every peso should be
journalized or need to have journal entries.

Nice question, (name of the student). Meaning sir, every transaction, no matter
Journal entry is a chronological record of how much the amount be, needs to be
the entity's transactions. It shows all the journalized? Right?
effects of a business transaction in terms of
debit and credit. Each transaction is
initially recorded in a journal rather than in
the ledger. It is also known as book of
original entry.

Yes, indeed.

Lets have these examples:

The following are the transactions for

"weddings r us" during the month of May
2000. the double entry system will be used.

May 1: Victoria Digao is a cultured woman Question Sir. Why does the entry should be
from the South. She is into a lot of in a hanging format?
interesting causes. Her fine taste is
preeminent such that she is considered an
authority in planning weddings. Upon the
advise of a trusted associate, Mariano
Lerin, Digao decided to organized her
wedding consultancy. She invested
P250,000. into this entity.

The journal entry should be:

Cash 250,000.00
Digao capital 250,000.00
-- initial investment---

Since she invested the cash, the asset will

increase to 250,000.00, that is why cash
should be in debit side. On the other hand,
her capital also increase, Since the nature
of capital in credit, it should be on this side.

Good observation. It should be in a hanging Yes Sir.

format so that it would be easily determine
where and how much is the debit and the
credit. The upper portion is always the
debit and the second one hanging is the
credit. In every transaction, there are two
or more account affected. Either, the asset,
the liabilities, owner’s equity, income or
expenses. So that is why, we need to know
the classification of the account first before
we do the journal entries. Understood?

Let’s take another example.

May 1 Rented office space and paid two

months' rent in advance, P8,000.00.
The journal entry should be:

Prepaid rent 8,000.00

Cash 8,000.00
-- paid rent in advance--

He just paid in advance for two months her

rent in office space. Paying in advance will
be treated as also increase in asset, so it
should be on the debit side. Hence, at the
same time, the asset also decrease since she
paid the rent using the company cash, that
is why cash should be in credit side.

D. Generalization
Did you understand our discussion today? Yes Sir.

Very good. Well then, how will you manage We need to be extra careful in creating the
to control the transaction of the business in journal entries as it may reflect the status
journalizing? of the business in the future.

Very good. What else? It is also our responsibility to keep the

records updated and will not missed any
single peso to arrive with the balance
amount, both debit and credit

Precisely! For our seatwork, create the Okay Sir!

correct journal entries for these following
transactions.

E. Application. Create the correct

journal entries for these following
transactions.

1. May 2: Victoria Digao issued a 1. Answer: Cash 210,000.00

promissory note for P210,000 loan for the Notes payable 210,000.00
ABN - AMRO Savings Bank. This availment -- acquire loan with 20% int--
will be used for the acquisition of a service
vehicle. The note carries a 20% interest per
annum. The arrangement with the bank is
that both the interest and the principal are
payable in full for one year.

2. May 4: Acquired service vehicle for 2. Answer: Service vehicle 420,000.00

P420,000.00. Cash 420,000.00
-- acquired service vehicle in cash—

3. May 4: Paid Prudential Guarantee and 3. Ans: Prepaid Insurance 14,400.00

Assurance, INC. P14,400.00 for a one-year Cash 14,400.00
comprehensive insurance coverage on the -- paid insurance in advance for 1 yr—
service vehicle.

(After 10 mins). Okay let’s answer.

Okay guys. Very good for your scores. Keep

it up!
F. Reflection. Acknowledged Sir!
In creating journal entries, TRUST is very
important. Remember, “learn to trust your
partner, and in return, be worthy of their
trust, too. Okay?

That’s it for today. Goodbye class. Goodbye Sir Ferolino!.