Mt. Carmel College of San Francisco, Inc.

8501, San Francisco, Agusan del Sur, Philippines

Tel. No. (085) 839-2161 • e-mail: mccsf.registrarsoffice@gmail.com

SENIOR HIGH SCHOOL LEVEL

School Year 2020-2021

Subject Fundamentals of Accounting & Management 1

Grade Level Grade 11 Section
Semester First Semester Quarter 1
Module No. 05 Chapter No. 5
Lesson No. Date Week 5

Content The learner demonstrates an understanding of…

Standard 1. The five major accounts, namely; Assets, Liabilities, Capital, Income and Expenses

Performance The learner shall be able to…

Standard 1. Identify and classify accounts according to the five major types

Learning The learner…

Competencies 1. Discuss the five major accounts and prepare a chart of accounts

At the end of the lesson, the learners will be able to:

Specific
Learning 1. Discuss the five major accounts
Outcomes 2. Prepare chart of accounts

Introduction
As we learned from the previous chapter, accounting concepts start from the basic equation: Assets
= Liabilities + Equity. But what actually make up assets? What compasses liabilities and equity? Thing
such as cash, plant and equipment, long-term debts would now enter into the picture. All of these are
components of one of the three parts of the accounting equation, called accounts. Later in the this chapter,
we will also explore revenues and expenses which are account representing some of the changes in equity.

Pre-Activity

 List down things you can see in your house.

 How these things are acquired?

Fundamentals of Accounting, Business & Management 1 - First Semester, SY 2020-2021 |1

 Mt. Carmel College of San Francisco, Inc.
8501, San Francisco, Agusan del Sur, Philippines
Tel. No. (085) 839-2161 • e-mail: mccsf.registrarsoffice@gmail.com

Analysis

Classification is the main key for the orderly operation of the business.

Discussion

Major Accounts: Definition, Classification and Examples

The major accounts in accounting are assets, liabilities, owner’s equity, revenues and expense.
Though revenues and expense are under owner’s equity account, they are shown separately because
they are the main income statement accounts, so effectively there are five major accounts.

Assets – are resources controlled by the business as a result of past transactions and event and
from which future economic benefits are expected to flow to the business. Simply put, these are
anything of value that is owned by the business.

Assets are classified into two;

 Current Asset – are those reassembly expected to be realized in cash within one
year form the reporting date or normal operating cycle, whichever is longer.
Realization here only means that these assets are expected to be converted into
cash, sold or disposed after a certain time, or through eh passage of time. Operating
cycle is the average time it takes the business to turn the cash used in the business
to cash received from selling goods of rendering service.


References:

Fundamentals of Accountancy, Business and Management by Vibal Group Inc,. and Joy S.
Rabo, Florenz C. Tugas, Herminigilda E. Saledrez, Copyrigth, 2016.

Fundamentals of Accounting, Business and Management 1, by Rex Bookstore, Inc. and Joselito G.
Florendo, Copyright, 2016.

Fundamentals of Accounting, Business & Management 1 - First Semester, SY 2020-2021 |2

 Mt. Carmel College of San Francisco, Inc.
8501, San Francisco, Agusan del Sur, Philippines
Tel. No. (085) 839-2161 • e-mail: mccsf.registrarsoffice@gmail.com

Fundamentals of Accountancy, Business and Management, by The Phoenix Publishing House, Inc.,
and Solita A. Frias, Copyright, 2016.

Fundamentals of Accountancy, Business and Management I, The Commission on Higher

Education in collaboration with the Philippine Normal University, Joselito G.
Florendo, Carlsberg S. Andres, Christopher B. Honoracio, Reymond Patrick P.
Monfero, Dani Rose c. Salazar, published by Commission of Higher Education,
2016, Chairperson: Patricia B. Licuanan, Ph.D.

Fundamentals of Accounting, Business & Management 1 - First Semester, SY 2020-2021 |3