FUNDAMENTALS OF

ACCOUNTANCY,
BUSINESS &
MANAGEMENT 2

Lesson 1
Prepared by: Aprilyn A. Pascual MBA
At the end of the lesson the students
should be able to;

1. Identify the elements of the SFP and

describe each of these items for a
single/sole
proprietorship business
At the end of the lesson the students
should be able to;

2. Prepare an SFP for a single/sole

proprietorship business using the report
form
At the end of the lesson the students
should be able to;

3. Prepare examples of different

financial statements of a service
business.
Memory Recall

Spelling Bee
Do you still remember the following
terms:
a. Accounting Equation
b. Assets
c. Liabilities
d. Equity
e. Single/sole Proprietorship Business
Give specific account
titles for each of the
terms.
LEARNER’S CHECK!
5 POINTS QUESTION!
Learning is Fun Company had
current assets amounting to Php
100,000. Noncurrent assets for the
year totaled Php 76,000. How
much is the company’s total
assets?
Answer: P176,000
Happy Selling Company’s total
liabilities amounted Php 10,000.
Total equity had an ending balance
of Php 20,000. How much is total
assets?
Answer: P30,000
10 POINTS QUESTION!
Happy Selling’s had the following
accounts at year end:
Cash-250,000, Accounts Payable-
70,000, Prepaid Expense-15,000.
Compute for the company’s
current assets.
Answer: P265,000
15 POINTS QUESTION!
Happy Selling’s Accounts Receivable
amounted to Php 500,000. Prepaid Expense
and Unearned Income totaled Php 30,000
and Php10,000 respectively. Cash balance
amounted to Php 100,000 while Accounts
Payable and Inventory totaled to Php 20,000
and Php 10,000 respectively. How much is
the company’s current assets? Current
liabilities?
Answer: P640,000
and P30,000
Company’s Total Liabilities and
Equity amounted to Php 285,000.
Total noncurrent assets ended at Php
85,000. Cash totaled Php50,000.
Inventory amounted to Php100,000.
Assuming the company had no other
assets, how much is Accounts
Receivable?
Answer: P50,000
Total assets amounted toPhp575,000.
Total equity amounted to Php
250,000. Accounts Payable amounted
to Php 50,000 while Unearned Income
totaled Php 85,000. Assuming there
are no other current liabilities,
compute for the company’s
noncurrent liabilities.
Answer: P190,000
Prepare a Statement of Financial Position using
the following accounts (one in report form and
one in account form):
Cash – 5,000
Loans Payable – 77,500
Accounts Receivable – 2,600
Supplies – 2,300
Equipment – 17,000
Owner’s equity – 40,000
Accounts Payable – 22,400