Fundamentals of Accountancy, Business and Management 1

Module 4. THE FIVE MAJOR ACCOUNTS AND CHART OF ACCOUNTS

Teacher: JESSKA SO
ACTIVITY SHEET

NAME:_________________________________SECTION:___________DATE:___________ SCORE:__________

Learning Competencies:
• Discuss the five major accounts (ABM_FABM11_IIId-e-19)
• Prepare a chart of accounts (ABM_FABM11-IIId-e-2

ACTIVITY 1. Direction: Check the appropriate classification for each item.

Account Title Current Non-Current Tangible Intangible
Account Receivable
Building
Cash
Computer Equipment
Copyrights
Delivery Truck
Furniture & Fixtures
Supplies
Inventories
Land
Notes Receivable
Office Supplies
Accrued Income
Prepaid Insurance

ACTIVITY 2. Direction: Check the appropriate classification for each liability.

Liability Title Current Non-Current
Accounts Payable
Bank Loan
Notes Payable
Salaries Payable
Taxes Payable
Unearned Revenue
Mortgage Payable
Bonds Payable
Lease Obligations
Pension Obligations
 Liability Title Current Non-Current
Warranty Liability
Customer Deposits
Income Tax Payable
Interest Payable

ACTIVTY 3. Direction: Identify the proper place in the chart of accounts for the following transactions. Use the
categories provided: Assets, Liability, Equity, Income, Expense.
Transaction Category
Supplies
Prepaid Expense
Advertising Expense
Cash Sales
Loan from Bank
Equipment
Utilities Expense
Owner's Investment
Service Revenue
Salary Payable
Accounts Receivable
Interest Expense
Depreciation Expense
Land Purchase
Professional Fees
Insurance Expense

ACTIVITY 4. You are starting a new sole proprietorship business and need to create a chart of accounts. Use the
provided account titles to develop a chart of accounts for your business. Write your answers on a separate sheet of
paper.
Account Titles:
1. Cash on Hand
2. Accounts Receivable
3. Inventory
4. Prepaid Expenses
5. Equipment
6. Furniture and Fixtures
7. Building
8. Land
9. Accounts Payable
10. Notes Payable
 11. Owner's Capital
12. Owner's Drawings
13. Service Revenue
14. Advertising Expense
15. Utilities Expense
16. Rent Expense
17. Insurance Expense
18. Salaries and Wages Expense
19. Depreciation Expense

Instructions:
1. Assign each account title to an appropriate category (Assets, Liabilities, Equity, Income, Expenses).
2. Provide a unique account code for each account.

Account Categories and Codes:

• Assets: 100-199
• Liabilities: 200-299
• Equity: 300-399
• Income: 400-499
• Expenses: 500-599

Your Task: Create a chart of accounts using the format above. Be sure to match each account title to the appropriate
category and provide a unique account code.