Republic of the Philippines

Department of Education
Region I
Schools Division Office I Pangasinan
PANGASINAN NATIONAL HIGH SCHOOL
Alvear St. Poblacion, Lingayen, Pangasinan
SY 2023 - 2024

Detailed Lesson Plan

In Accounting, Business and Management
( THIRD QUARTER)
Grade 11 — ABM

I. Learning Objectives

At the end of this lesson, the students are expected to be able to:
A. Understand the Accounting Equation and its elements;
B. Solve problems using the Accounting Equation; and
C. Cultivate appreciation of the value and importance of accounting equation for personal
use and career preparation.

II. Subject Matter

A. Topic: The Accounting Equation

B. References:
1. Fundamentals of Accountancy, Business And Management 1 Quarter3 Module 2:
Accounting Concepts and Principles and the Accounting Equation
2. What is Accounting Equation and How Do You Calculate it? from
https://www.investopedia.com/terms/a/accounting-equation.asp
3. Accounting Equation retrieved from
https://www.accountingcoach.com/accounting equation/explanation
C. Materials: Laptop, Projector,Visual Aid, SLM
D. Concepts: Assets, Liabilities, Owner’s Equity and Accounting Equation
E. Values Integration: Financial literacy, appreciation
F. Methodology: Inductive Method and 4As

III. Procedure

Teacher’s Hint Teacher’s Activity Student’s Activity

A. Preparatory Good morning, class! How’s your day so far? Good morning too, Teacher. We are doing
Activities well.

Greeting That’s good to know! So I am expecting a full blast Yes.

of enthusiasm and active participation from all of
you for our today’s lesson, okay?

Prayer Before we begin our lesson, let us pray. Would you (Student will lead the prayer)
please lead the prayer?

Classroom Okay, you may now all sit down. Please tap the the Students will tap the person on their right
Management person on your right and say “Hi!”. and say Hi.

Now tap the person on you left and say “Hello, how Students will tap the person on their right
are you?” and answer.

Please make sure that there are no trashes around Students will arrange their chairs, pick up
and that your chairs are arranged properly. Before the trashes and will listen to the teacher for
we start, let me remind you about our class rules. the classroom rules.

Checking of I will now be checking your attendance, please say Students will say present once called.
Attendance present if you are around.
 Wow! Everyone’s present and no one’s also late. I No, teacher.
am so glad that you are all highly motivated to
come into our class today. I want you to give
yourselves a “LET’S GO CLAP”, do you know
how to do this class?

Don’t worry, Teacher Jomar is here to help you. To Imitates clap and say “Let’s Go!”
do this, just perform this rhythmic clap (claps). Can
you repeat after me?

B. Recall Refresher: the teacher will ask the students what Student will share what they can remember
they can remember about the discussion from the about Assets, Liabilities and Owner’s
previous meeting about the definitions of Assets, Equity.
Liabilities and Equity as a review. The teacher will
provide a picture
“4PICS ONE WORD”. and provide each
definitions.

Answer: Assets

ASSET
An asset is something an entity owns or controls in
order to derive economic benefits from its use.

Answer: Liabilities
LIABILITIES
A liability is an obligation that a business owes to
someone. Its settlement involves the transfer of
cash or other resources.

Answer: Equity

Answer: Equity
EQUITY
It is what the business owes to its owners. It reflects
the residual claims of the owner.

C. Motivation The teacher will appreciate the students for

remembering and understanding their previous
lesson.

Now, I will show you a photo on the screen and (15 seconds provided for the students to
will provide 15 seconds for you to observe and observe and analyze the photo.)
analyze the picture, and try to relate this with
Accounting Equation. (Shows picture on the
screen).
 (Look at the picture and interpret)

D. Developmental Okay, time’s up. Anyone who can share to the Students are hesitant to share
Activities class, how can you relate the picture to Accounting
Equation? Raise your hand if you want to answer?
Anyone?

Don’t worry, there are no wrong answers. Can we

have… (Call a student) Student shares to the class.

Very good! That is correct.

Presentation of the The teacher will discuss the topic by explaining the
Lesson relevance of the picture scenario to Accounting
Equation.

Analysis and The three concepts we have discussed in our

Discussion previous lessons were integrated to form the
accounting equation.
Assets= Liabilities+ Equity (Owner’s)
Assets are what the business owns. Rights to assets
belong to both or either the creditors and/ or the
owner.
Assets come from Liabilities and equitys or owners.
Capital investments of the owner.

Remember
When using the accounting equation, one must There are at least two (2) accounts or
components that are affected in every
remember that both sides of the equation must be
transaction.
equal at all times. Each transaction would have to
affect at least two accounts in order for the equation
to remain in balance.
+Asset, -Asset
+Asset, +Equity or -Asset, -Equity
+Asset, +Liability or -Asset, -Liability
What if the assets are claimable by the owner?
Assets= Equity
For example. I am starting up a business. In
January 1, 2023, I invested my personal money,
Cash of P100,000. What do you think are the 2 Increase in Asset, Cash for P100,000 and
Increase of Owner’s Equity, Capital of
accounts involved in this scenario?
P100,000.
Second scenario. February 1, 2023 came. I
purchased Equipment on account for my business
amounting P15,000. Who can provide the 2
accounts that are affected in this scenario? Decrease in Assets Cash of -P15,000 and
Increase of Equipment of P15,000.
Are you sure with your answer? Thank you for
answering and you may now sit down. Anyone who
has a different answer? This is a bit of a tricky
scenario. Try to analyze the situation. Increase Asset, Equipment of P15,000 and
Increase in Liability, Accounts Payable of
Transactions that have words like “on account”, P15,000
“through credit”, “by loan” and the like means that
the transaction is not paid by cash but rather,
.
purchased through a liability.

I have a last example for you. March 31, 2023

came. It’s time for me to pay my Rent dues
amounting P5,000 by cash, also at the same time I
received cash because of the services that I
rendered for the month, an income of P10,000.
What do you think are the components or accounts Both Increase and Decrease in Asset, Cash
being affected? is deducted by P5,000 and increased by
P10,000 then Increase in Expense and
Are you all able to understand the the concepts and Increase in Revenue which is Rent
examples? Any questions so far? Expense of P5,000 while Service Revenue
is P10,000
Accounting Equation
Assets= Liabilities + Equity
Liabilities= Assets- Equity
Equity = Assets- Liabilities We’re all good, Teacher
Check your understanding:
ASSETS LIABILITI EQUITY
ES
1 500,000 200,000
2 250,000 250,000
3 2,700.000 2,500,000
4 450,000 275,000
Student will solve and answer on the
5 850,000 200,000 board.
Answer:
The three example scenarios will be used to form 1.300,000
the accounting equation: 2.500,000
Assets = Liabilities + Owner’s Equity. The teacher 3.200,000
will call a student to answer the accounting 4.725,000
5.650,000
equation.

Other Equations (transposed)

Liabilities = Assets - Owner’s Equity
Owner’s Equity = Assets - Liabilities

1. The economic obligations of a business amount

to P60,000 and its residual interest amounts to
P200,000. What would be the amount of the
economic resources of the business?
 2. The economic resources of a business amount to
P500,000 and its economic obligations amount to Assets=Liabilities + Equity
P250,000. What would be its residual interest? = P60,000 + P200,000
= P260, 000
3. The company’s assets are P12,000,000 out of
which is 1/3 represents owner’s equity. How much
is the total liabilities?
Equity= Assets - Liabilities
= P500,000 - P250,000
= P250,000

Liabilities = Assets - Equity

=P12,000,000 - P400,000
= P800,000

Check your understanding:

EQUITY
ASSETS LIABILITIES Capital Drawings Revenue Expenses
(+) (-) (+) (-)

1 80,000 10,000 30,000 5,000 60,000

2 11,000 15,000 2,000 10,000 4,000

3 44,000 18,000 20,000 1,000 6,000

Student will solve and answer on the

Do you have any questions for me before we board.
proceed any further? Answer:
1.15,000
How do you find the accounting equation? 2.30,000
3.13,000
The teacher will provide tips.

Have I made myself clear?

No, Teacher .

(Class Participates)

Yes.

Application Boardwork Exercises( Group Activity 10 minutes Students will utilize the white board to
including discussion of answers). answer.
Divide the student by two groups. Group 1 will
answer the first word problem while group 2 will
answer the second word problem.

L = A - OE
I have Cash amounting P200,000, I have my
Equipment amounting P300,000, Service Vehicle
for P150,000 and my Equity is amounting
P150,000
P500,000. How much is my Liabilities?

OE = A - L
I have Cash of P100,000, Building worth P300,000,
Land worth P1,000,000 and Liabilities of 500,000.
How much is my Owner’s Equity?
P900,000
E. Generalization What is the Accounting Equation? Assets = Liabilities + Owner’s Equity

Why do we need to study and Accounting (Class participates)

Equation?

IV. Evaluation
Direction: Solve the following problems using the Accounting Equation in 15 minutes. (20 points) For
items 1 to 5, identify what accounts are affected and its amount. For item 6, complete the table and show
the solution.

1. On January 1, 2023, Dan made an initial investment of P500,000.00 cash in DPE

Company.
2. On February 15, 2023, Dan paid his monthly rent due for the month of January
amounting to P2,000.00.
3. On February 28, 2023, Dan acquired office equipment worth Php100,000.00 on account
of Chenie Company.
4. On March 31, 2023, Dan made a cash withdrawal amounting to P50,000.00 from the
business.
5. On April 31, 2023, Dan paid cash, 50% of its February 1, 2023 accounts payable to
Chenie Company
6. Complete the table show your solution;

ASSETS LIABILITIES EQUITY

1 500,000 150,000
2 120,000 250,000
3 700.000 200,000
4 450,000 225,000
5 550,000 230,000

V. Assignment: Song Composition

Using an existing song or melody, compose a song by integrating the accounting definition and
its basic concepts. (2-3 minutes to be presented next meeting)
Criteria:
Melody - Beauty of the melody; high recall (hook) 30%
Lyrics - Beautiful and meaningful lyrics 20%
Musicality - Melodic structure, relationship of lyrics to melody 30%
Relevance - Connection of lyrics to Fundamentals of Accounting 20%
100%
Take Home Task:
Answer Assessment on Page 22 in the Self-Learning Module

Prepared by:

Jomar N. Cabotaje
Teacher I Applicant