Senior High School

FUNDAMENTALS OF ACCOUNTANCY,
BUSINESS AND MANAGEMENT 2
QUARTER 2: Module 4
Accounting Practice Set

Department of Education ● Re public of the Philippines

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Fundamentals of Accountancy, Business and Management 2 Senior High
School Alternative Delivery Mode First Edition, 2020

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Introductory Message

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 Dear Teachers and Learners! The writer welcomes you all to this
Fundamentals of Accountancy, Business and Management 2 Modules. This material
tries to bring you with the preparation and analysis of financial statements of a
service business and merchandising business using horizontal and vertical analyses
and financial ratios. Knowledge and skills in the analysis of financial statements will
aid the future entrepreneurs in making sound economic decisions.
As your partner in learning, I hope that you will not miss out every detail that
the writer would like you to learn in this material. Do enjoy as there are challenging
and interesting activities inside this learning modules. Congratulations in advance for
this will make you the master of your own learning.
Ops! you wait for a while, for an easy use of this material take note of some
few reminders
1. Take your time to read every detail that this module contains.
2. This material contains Module 4 and each of which is provided with
activities/tests that will surely lead you to learn.
3. Here are the Icons used as your guide in every part of the lesson.

Icons of this Module

This part contains learning objectives
What I Need to that are set for you to learn as you go
Know along the module.
This is an assessment as to your level
of knowledge to the subject matter at
What I know hand, meant specifically to gauge prior
related knowledge.
This part connects previous lesson with
that of the current one.
What’s In
This is an introduction of the new lesson
through various activities before it will
What’s New be presented to you
This is a discussion of the activities as a
What is It way to deepen your discovery and
understanding of the concept.
This is a follow-up activity that is
intended for you to practice further in
What’s More order to master the competencies.
This activity is designed to process what
What I Have Learned you have learned from the lesson

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 This is a task that is designed to
showcase your skills and knowledge
What I can do gained, and applied into real-life
concerns and situations.

4. Please do follow the directions given per activity so your experience to the use
of this material will be meaningful and fruitful.
5. Answer all the tests in this material.
6. As a courtesy to the future users, PLEASE DO NOT WRITE ANYTHING ON
ANY PART OF THIS MODULE. Write your answer/s on a separate sheet of
paper, notebook, workbook or whichever is specified by your facilitator

Special Reminders for you learners;

1. Answer every activity intelligently and diligently.
2. Write your answer as directed by your facilitator.
3. Feel free to approach or communicate your teacher/facilitator whenever you
need help.
4. Don’t forget to put a smiley face if you finish the activity within the allotted
time.

Table of Contents

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 Page

What This Module is About…………………………………………………..

Icons of this Module…………………………………………………………..

Module 4 Accounting Practice Set

Activity
1.4.1 Identify Me
1.4.2 Provide Me
1.4.3 I Can Do This!

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 4 Accounting Practice Set

What’s In

In this practice set, you are tasked to perform bookkeeping duties for AngTindahan
Co Bookkeeping & Educational Supplies. The business has just ended its initial year
(2018), but the original accountant resigned because of personal reasons.
As newly hired bookkeeper, you need to perform the necessary procedures to
record the transactions of the company during the current year of operations (2019).

What’s New

To achieve the objectives of this module, you must keep in mind the following
terms:
 Accounts  Property, Plant,  Raw Materials payable and Equipment
 Salaries Payable
 Accounts  Finished Goods  Supplies receivable  Goods in  Utilities Payable
 Bonds payable Process  Financial Asset  Cash  Interest Payable at Fair
Value  Cash in bank  Notes Payable through Profit or
 Cash on hand  Prepaid Rent loss

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 What Is It

Let us review the two types of journal, the general journal and the special
journal. In contrast to general journal, the purpose of the special journals is to
increase efficiency and prevent redundancy in recording transactions in the general
journal. For example, a business may have ten credit sales transactions in one day.
Without a sales journal, this will require the recording of the following journal entries
ten times in one day.
The sales journal is used to record only credit sales and not cash sales. In the
same vein, purchase journal used to record only credit purchases and not cash
purchases. This is because all cash transactions are recorded in the cash receipts
and cash disbursement books. To record purchases and sales made in cash in the

Let’s take a look on the flowchart below.

purchase and sales journals will mean double recording because these are already
recorded in their respective cash books. It will result in inefficiency and
complications.
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 Review the previous discussions about the different kinds of bank forms and
the accounting process because in this lesson you make adjusting and closing
entries, preparing trial balance and worksheets.

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 The flowch
summarize art show
d to becom s how business transa
business tra e fn ctions are re
nsactions. It ancial statemBeunsi tsn. ess forms a corded, classifed and
date of tran contains info re used to d
saction, ite rmation rele ocument
More impo ms bought va nt to the transac
rtantly, busi or sold, pric ti
ness forms e , tax and na on
personnel w
ho perform document me of buye such as
forms also e acco r and
show that e d specifc functions re untaitbyil– identifcation seller.
implementi sta la te of
ng the tran blished policies and p d to the transaction. T
saction. rocedures a he business
re followed
in
Diferent kin
d
1. Intenr al b s of business forms
usiness form
–sforms used on
ly within th
e business.

 Purchase request – to document the processes involve prior to

sending a confirmed order to the seller. This may include getting
quotations from various suppliers and securing budgetary approval to
ensure there is funding for the purchase.
 Check vouchers – used to document the disbursement process. Used
to document the following reconciliation process: orders are
authorized, deliveries are from valid orders, and purchase invoices
represent actual deliveries and agreed upon price.

2. External business forms – forms used by both buyer and seller.  Purchase
order – a form prepared by the buyer and sent to the seller to document
the order and agreed upon terms of the purchase.
 Delivery receipts–a form prepared by the seller, with a copy given to
the buyer, to document the delivery of the items ordered.
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  Purchase /Sales invoice –It contains information on the prices of the
items delivered and the terms of the purchase. This should be
consistent with the information on the purchase order. The purchase
invoice and sales invoice are the same form. It is referred to as
purchase invoice by the buyer because it documents its purchase
transaction. On the other hand, the same form is referred to as sales
invoice by the seller to document its sale transaction.
 Official receipts – used to document cash transaction. The entity
receiving the cash will prepare the Official Receipts (OR). The entity
paying will receive the OR as evidence of payment mad

Associate the following business forms with the respective accounting books:

Business Forms Accounting

Books
Check voucher (check voucher package includes Cash purchase
request, purchase order, delivery receipts disbursement and purchase
invoice), suppliers’ official receipt books received for cash payment.
Official receipt issued for cash payment and cash Cash receipts
register tapes. books
Sales invoice issued to customers. Sales journal
Purchase invoice received from seller. Purchases journal

Go through the instruction to fill up the accounting practice set. This will normally
include the following:
Fill out the business and bank forms to document the given business
transactions.
Record the business transactions in the appropriate journal. Use the
general and special journals provided in the accounting practice set.
Post the journal entries in the appropriate subsidiary ledgers and
general ledger accounts.
Summarize the ledger accounts and list the balances on the trial
balance.
Record the necessary adjusting entries. Information to prepare the
adjusting entries are normally provided in the accounting practice set. -
Prepare the financial statements from the trial balance.
Prepare necessary closing entries and record on the general journal
and ledger.
You may perform financial statement analysis of the completed
financial statements.

You may use MS Excel for journal, ledger, preparation of the worksheet, trial
balance and the financial statements.

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 What’s More

Activity 4.1. Identify Me

AngTindahan Co. is a wholesaler of office and school supplies. The following

are the transactions of AngTindahan Co. for the first month of its operations. All cash
disbursements are made by bank check. Assume perpetual inventory method is
used.

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Requirements:
1. Identify the following and indicate on the spaces provided:

a. Business or bank forms to be used by AngTindahan to document the

above transactions.
b. Journal to be used to record the original entry for the respective
transactions.

2. Prepare the journal entry (debit-credit format) to record the above transactions.
Use only the accounts listed on the chart of accounts given below.

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 What I have Learned

Activity 4.2 Provide Me

1. Fill up the relevant forms based on the answer in 1a. Format of the forms are
provided below. Reproduce the necessary forms. Follow the numbering
instructions.

2. Based on your answer in 1b, record the transactions in the appropriate

journals. Formats are also provided below.

3. Post the journal entries in the appropriate subsidiary ledgers and general
ledger accounts. Formats are also provided below.

What I can Do

Actvity 4.3 I Can Do This !

1. Record the following adjusting
entries.
a. Accrual of one-month rent
b. One month depreciation of lapt
op compu ter. Estimated life is 5
years.
c. Accrue employee salary, P 7,00
0
2. Prepare the fnancial statement
s from the trial balance.

4. Summarize the ledger accounts and list the balances on the trial balance.
3. Prepare necessary closing entries and record on the general journal and
ledger.

4. Perform financial statement analysis on the completed financial statements.

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Accounting Books

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Worksheet

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 REFERENCES

(Beticon, Domingo, & Yabut, Fundamentals of Accountancy, Business and

Management 2, 2016)

(Robles & Empleo,Intermediate Accounting based on PFRS/ IFRS, 2010)

(Commission on Higher Education, Teaching Guide For Senior High School

Fundamentals Of Accountancy, Business, And Management 2, 2016)

(https://pngio.com/images/png-a1192276.html, n.d.)

(https://www.freepik.com/premium-photo/top-view-business-paper-graph-
woodentable-with-calculator_6382493.htm, n.d.)

(htps://quizizz.com/admin/quiz/5c45577617a592
001a8b8f51/basic -documents -and -
transactio ns-to-bank-deposits, n.d.)

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