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11 Third Quarter: Learning Area Grade Level Quarter Date I. Lesson Title Ii. Most Essential Learning Competencies (Melcs)
11 Third Quarter: Learning Area Grade Level Quarter Date I. Lesson Title Ii. Most Essential Learning Competencies (Melcs)
11 Third Quarter: Learning Area Grade Level Quarter Date I. Lesson Title Ii. Most Essential Learning Competencies (Melcs)
Things to ponder
Do you agree that “give and take” is a key to a healthy relationship? If your
answer is Yes, that is a sign that you are on good terms with your loved ones.
Example:
Assume Mr. A put up a barbershop. The first thing he did is to look for a place where he
can rent. Is looking for a place for renting already a business transaction? No, it is not,
because he hasn’t received anything yet and nothing that he parted with.
After he found a place, Mr. A paid three months in advance and a 1-month deposit for the
rent. Is this a business transaction? The answer is Yes. Mr. A parted cash for the payment,
and he can now occupy the place which is what he received in return. The documents that
will confirm this transaction is the official receipt that will be issued by his landlord. If you
will be hired as
a bookkeeper of his barbershop what will you do with this transaction?
An official receipt is evidence of the payment received from a third party. With Mr. A’s
example, the source document is the official receipt that the landlord issued to him as
payment for rent.
In your week 3 lessons, you were provided a table that summarizes the rules of debit and
credit, and their effects on the accounting equation. Using the table below, we will analyze
various business transactions applying rules of debit and credit and their effects on the five
major accounts.
1. Invested ₱400,000 in his business. The trade name of the business was “MR.
LABAKO”
Asset Liability Equity Revenue Expense
₱400,000 No effect ₱400,000
Increased in the Increased in the form No No
form of cash - of capital - effect effect
Debit Credit
2. Hired Allan and Allie who will manage his business
Not a business transaction, it does not affect the values of the accounts.
3. Collections from various customers for the day – ₱2,000
Asset Liability Equity Revenue Expense
₱2,000 Increased in ₱2,000 Increased in
the form of cash No effect No effect the form of Sales- No effect
– Debit Credit
4. Purchase store supplies fr om Labanila
Asset Liability Equity Revenue Expense
₱8,000
Increased in the form of No effect No effect No effect
Store supplies – Debit No
₱8,000 Decreased in the effect
form of Cash - Credit
Note: ₱8,000 + and ₱8,000 – will have a zero effect on the asset account
5. MR. LABAKO entered into an exclusive contract with Saraw Hotel where the
business will do all the laundry of the hotel.
Note: Non-business transaction
6. Saraw Hotel availed the services of MR. LABAKO amounting to ₱12,000. Payment
will be made on March 20, 2018.
Asset Liability Equity Revenue Expense
₱12,000 ₱12,000
Increased in the form No Increased in the No effect
of Accounts No effect effect form of Sales –
receivable – Debit Credit
7. Purchase a washing machine amounting to ₱50,000
Asset Liability EquityRevenueExpense
₱50,000 Increased in the form of Equipment-washing machine – Debit
₱50,000 Decreased in the form of Cash – Credit
No effect No effect No effect No effect
Things to ponder
Understanding the rules of debit and credit is a must for an accurate analysis of transactions.
C. Engagement 40 minutes To further enhance your knowledge of the concept learned, do the following activities. Write
Pakikipagpali your answers in your notebook.
han Activity 1
Below are the described effects of business transactions on major accounts. Give an example
of business transactions that will describe the effect.
1. Decrease in an asset account and increase in a liability account.
2. Increase in a liability account and increase in an asset account.
3. Increase in an equity account and increase in an asset account.
Activity 2
Assuming you are a bookkeeper of the company. Identify business
transactions that transpire with the use of the documents below.
1. Official receipts (issued by third party) 4. Check (issued by client)
2. Sales invoice (issued by a supplier) 5. Deposit slip
3. Purchase invoice (issued by the business))
4. Withdrawal slip( by the business)
Activity 3
Entrepreneurial mind setting
Pretend that you are an entrepreneur who wanted to put up a bakery in your place. Create at
least 10 lists of business transactions that may transpire for the first month of the business
operation. Write your answer on your notebook.
Prepared by: Eva C. Topacio, SDO Imus City Checked by: Dr. Josephine P. Canlas, Adora G. Del Mundo, Cherie
L. Logatoc