Republic of the Philippines

Department of Education
Regional Office No. VIII
Division of Northern Samar
PAMBUJAN NATIONAL HIGH SCHOOL
Pambujan, Northern Samar

LESSON PLAN for CLASSROOM OBSERVATION in

Fundamentals of Accountancy Business, and Management 1

TEACHER: Maria Rosario G. Pedamato TEACHING DATE AND TIME: March 1, 2023
3:00-4:00 P.M.
GRADE LEVEL & SECTION: Grade 11-ABM QUARTER: 3rd

I. Objective
A. Content Standards The learners demonstrate an understanding of the external and internal users of
financial information accounting concepts and principles.
B. Performance Standards 1. Solve exercises and problems on the identification of users of information,
type of decisions to be made, and type of information needed by the users.
2. Cite users of financial information and identify whether they are external or
internal users identify generally accepted accounting principles.
C. Learning Explain the varied accounting concepts and principles.
Competencies) ABM_FABM11- IIIb-c-15
At the end of this lesson you should be able to:
Objectives 1. Define Accounting concepts and principles
2. Explain the varied accounting concepts and principles
3. Solve exercises on accounting principles as applied in various cases.
Content Knowledge and Grade 11- Fundamentals of Accountancy, Business and Management 1
Pedagogy (Within and Describe the nature of accounting ABM_FABM11-IIIa-2
Across) Grade 11- Principles of Marketing
Define and understand marketing Principles, Goals and Approaches
ABM_PM11-la-b-1
Grade 11- Reading and Writing
Identify the context in which a text was Developed (EN11/12RWS-IVac-7)
II. Content Accounting Concepts and Principles
III. (Learning Resources)
A. References
1. Teacher’s Guide
Pages
2. Learner’s Materials Quarter 3-Module 2: Accounting concepts and principles, developed by;
Pages DepEd –Schools Division of Bataan; First Edition 2020

3. Textbook Pages
4. Additional Materials Offline LRMDS
from Learning
Resources (LR) Portal
B.Other Learning Resources IM’s (power point presentation, videos, pictures, handouts)
IV.Procedures
A. Review Previous Learners will give a recap about the understanding of the previous lesson
Lessons
Questions to be asked:
• Can you remember our topic last meeting?
• What is Accounting?
 What are the process of accounting?

B. Establishing purpose Learners will do the activity (by group)

for the Lesson
Use of Game “Internal” or “External”
Directions: Categorize the following terms whether they are internal or
external users by writing them on their proper column in the given table.

1. Management
2. Creditors
3. Tax Authorities
4. Regulatory Authority
5. Employees
6. Owners
7. Customers
8. Investors

INTERNAL USERS EXTERNAL USERS

C. Presenting *Localization and Contextualization

examples/instances of the *Integration to Reading and Writing Skills
new lessons
Text Presentation
Directions: Read the text and answer the questions that follow.

Lani Bookstore
Lani Mejos who lived in Brgy. 1, Pambujan N. Samar, dreamed to have her
own bookshop when she was young. She was a girl with big dreams even at
a young age. She loves books so reading became her escapade as she grows.
She finished her degree in Bachelor of Science in Education major in
English Literature in University of Eastern Philippines and aced the LET
2019. Yet, she felt incomplete and she wanted to pursue her childhood
dream. So, she launched her own bookshop business in Brgy. 1, Pambujan
N. Samar called Lani Bookstore with the initial investment of Php.
500,000.00. During the first year of operation the books of account reflected
an income of Php 50,000.00 and expenses of Php. 30,000.00. She was
doubtful of the recorded expenses, so she reviewed the list of recorded
expenses. Observe the table below showing all her expenses.

Ask:
 What should be included as bookshop’s expenses? Why?
 What should not be included as bookshop’s expenses? Why?
D. Discussing new Discovery Learning
concepts and practicing Use of Game “WORD HUNT”
new skills #1 Free-discussion

Directions: Hunt for accounting principles in the letter grid.

Ask:

What accounting concepts and principles do you know?

What is accounting concepts and principles?

*Integration to Principles of Marketing

*Integration to Nature of Accounting

Accounting Concepts and Principles- refer to a common set of accounting

principles, standards, and procedures issued by the Financial Accounting
Standards Board (FASB).

In doing financial reports and in recording business transactions, there are

certain rules and principles that are to be followed.

Here are the Accounting Concepts and Principles, (Ballada, 2017).

1. Materiality Principle
This includes all assets that are immaterial to make a difference in the financial
statements which the company should record as an expense.

Example: Jelian, an accounting clerk, purchased a friction pen. She estimated

it to have a useful life up to three months. Since a friction pen is immaterial
relative to assets, it should be recorded as an expense.

2. Going-Concern Principle
This means that the business is expected to continue indefinitely.

Example: Mr. Gerald’s sushi business in Brgy. 8, Pambujan N. Samar is

experiencing difficulty, but he is still expecting it to continue that is why he
still updates his books of account.

3. Time Period Principle

The financial statements are usually divided into specific time intervals. The
business should report the financial statements appropriate to a specific period.

Example: Ms. Jellian Marie is an accountant of JM Company located in San

Roque N. Samar. His boss requires him to prepare financial statements every
month.

4. Monetary Unit Principle

Any amount involved in the business is stated into a single monetary unit.

Example: A fast food chain has branches all over the world but their financial
statements must be reported in peso since they also have branch here in the
Philippines.

5. Business Entity Principle

In this principle, there is a separation and distinction of transactions between
the business enterprise and its owner or investor.

Example: Aling Rodina, the owner of a mini grocery store in Brgy. 6,

Pambujan Northern Samar, separates the assets and liability of her business
from her personal transactions. All transactions of the business will be just in
the business while her personal matters will be hers only.

6. Cost Principle
This is an accounting principle wherein accounts should be recorded initially at
cost as well as assets at their respective cash amounts at the time the asset was
purchased.

Example: When the owner of a sari-sari store buys a calculator, it should be

recorded in the cash register at its price when it was bought.

7. Accrual Accounting Principle

In this principle, revenue should be recognized when earned regardless of
collection. Same goes with expenses which are recorded when incurred
regardless of payment. But in the Cash Basis Principle, revenue is logged when
collected, and expenses should be recorded when paid. A Cash Basis is not
generally an accepted principle today.

Example: When a painter finishes performing his services, he should record it

as revenue even if his professional fee is still uncollected. When the painter has
to pay his studio rent, he should record it as an expense even if it is unpaid.

8. Matching Principle
In this principle, cost should be matched with the revenue generated. It requires
that the expenses incurred during a period be recorded in the same period in
which the related revenues are earned.

Example: Mhariz Ann sold the goods to her customers in Rawis Northern
Samar, the revenue increases and the inventories decrease. The reduction of the
inventories in relation to revenues is called the cost of goods sold and it should
be recorded in the period in which the revenues were earned.

9. Disclosure Principle
All necessary, relevant, and material information should be reported in this
principle for transparency.

Example: Angelica bought a computer for her computer shop. She made sure
that it was recorded on the financial reports.

10. Conservatism Principle

This is also known as prudence. Assets and income should not be overstated
while liabilities and expenses should not be understated. In case of doubt,
expenses should be recorded at a higher amount. Revenue should be recorded
at a lower amount.

Example: Suppose an asset owned by Mark Anton, like inventory was bought
for Php 20,000.00 but can now be bought for Php 15,000.00. Then the
company must immediately write down the value of the asset to at Php
15,000.00 because of the lower cost in the market. But if the inventory was
bought for Php 20,000.00 and now has a market value of Php 25,000.00, it
must still be shown as Php 20,000.00 on the books because the gain is only
recorded when the inventory or asset is sold.
 11. Objectivity Principle
In this concept, financial statements of an organization must be presented with
supporting solid evidence and the intent behind this principle is to keep the
management and the department of accounting from making financial
statements that are affected by their opinions and biases.

Example: Benemark Enterprise is trying to get a financing from ODB Bank in

Catarman N. Samar for some expansion but the enterprise’s bank wants to see
a copy of its financial statements before it approves loan of the enterprise. The
enterprise’s bookkeeper prints out an income statement from its accounting
system and mails it to the bank. Most likely, ODB Bank will reject this
financial statement because an independent party did not prepare it.
E. Discussing new Use of Game “Fill in!”
concepts & practicing Directions: Fill in the correct letter inside each box to form the word/answer.
new skills #2 Use the sentences below as a clue.

M T C G

1. Cost should be matched with the revenue generated. MATCHING

D S C L S U

2. All relevant and material information should be reported.

DISCLOSURE

C N S R V A S

3. This is also known as prudence. In this principle, assets and income should
not be overstated while liabilities and expenses should not be understated in
case of doubt. CONSERVATISM

A E R A L T

4. In this principle, assets that are immaterial to make a difference in the

financial statements should be recorded as an expense. MATERIALITY

A C R A

5. This principle states that revenue should be recognized when earned

regardless of collection and expenses and should also be recognized when
incurred regardless of payment. ACCRUAL

*Integration to Mathematics
- How many accounting concepts and principles were discussed in the lesson?

F. Leads to Formative Differentiated Activities

Assessment 3) Group Activity

GROUP 1 LITERARY ARTS

Directions: Make a short poem showing what you have learned from today’s
lesson.

GROUP 2 MUSIC
Directions: Compose a song showing what you have learned from today’s
lesson.

GROUP 3 DRAMA
Directions: Make a role play showing the importance of what you have learned
from today’s lesson.

Valuing: (UNITY AND COOPERATION)

 • Do you like our activity?
• Is our group activity easy?
• Why it became so easy? *HOTS

G. Finding Practical Ask:

Applications of concepts
and skills in daily living As an accountant, why do you have to abide these accounting concepts and
principles?
H. Making What is the importance of accounting concepts and principles in the business?
Generalizations &
Abstractions about the
lessons
I. Evaluating Learning I. Define accounting concepts and principles. (5 pts.)

II. Explain the following accounting concepts and principles.

1. Materiality Principle
2. Going-concern principle
3. Time Period Principle
4. Monetary Unit Principle
5. Business Entity Principle

III. Analyze and solve the transactions

Petness First Petshop

Rose opened his pet shop business called Petness First Petshop. She opened a
bank account for her business and deposited PHP1,000,000. The business
earned PHP100,000 but she had doubts with the recorded expense of
PHP70,000. She is not sure if he should include, the following items as
expenses:

Salary expense 20,000

Rent expense 10,000
Utilities expense (at home) 15,000
Utilities expense (at the shop) 10,000
Insurance expense 5,000
Withdrawals 10,000

Questions:
1.What should be included as Petness First Petshop expenses? Why? (2 points)
2. How much is the total expenses of Petness First Petshop? (2 pts.)
3. What should not be included as Petness First Petshop expenses? Why? (2
points)
4. How much is the total expenses that should not be included?

J. Additional activities Directions: Make 1 example each for the different accounting concepts and
for application or principles. Write your answers in a yellow paper.
remediation
V.Remarks
VI. Reflection
A .No.of learners who earned
80% in the evaluation
B. No.of learners who requires
additional acts.for remediation
who scored below 80%
C. Did the remedial lessons
work? No.of learners who
caught up with the lessons
D. No.of learners who
continue to require
remediation
E. Which of my teaching
strategies worked well? Why
did this work?)
F. What difficulties did I
encounter which my
principal/supervisor can help
me solve?
G. What innovations or
localized materials did I
used/discover which I wish to
share with other teachers?

Prepared by: Observer:

MARIA ROSARIO G. PEDAMATO LESLIE G. LOBOS

SHS TII Master Teacher II