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SHS-Accountancy, Business and Management (ABM)


I. Objectives

At the end of the lesson, the students should be able to:

 determine the common rules of debits and credits;
 appreciate the usefulness of debits and credits through group activity;
 perform all the activities regarding debits and credits.

II. Subject Matter

Topic: Rules of Debits and Credits

Reference: Textbook in Basic Accounting
Author: Win Ballada (pp. 4-5 to 4-6)
Materials: Envelope, Questionnaire, Index Card

III. Procedure

A. Learning Activities

Teacher’s Activity Student’s Activity

Teacher will greet the students Students give their response to the teacher

Teacher will call a volunteer from the class to

One student will lead the prayer
lead the prayer

Teacher will ask the students to listen

attentively since there will be a quiz after the Students listen attentively
discussion, and that will serves as their
attendance for the day.

The teacher will ask the following questions:

Some of the students raise their hands
 Who among you here have a family
business? Any kind of business.

 Are your parents going through a Some of the students may say yes, others
proper analysis of their business may say no.



The teacher will divide the class into two

groups. The left and the right group. The
teacher will give each group a bunch of papers
containing with different parts of the words Students participate in the activity
they must build. From that, they must
assemble the word LEFT for the left group, and
the word RIGHT for the right group.

But the real purpose of the activity is to reveal

the words which are written at the back of the
puzzle. The word DEBIT for the LEFT group and
the word CREDIT for the RIGHT group. Students participate in the activity
This activity is made to give the students an
overview that in the business world LEFT is
associated with the word DEBIT and RIGHT for

After the word building activity, the teacher

will start the discussion.


Accounting is based on the double entry

system which means that the dual effects of
the business transaction are recorded.

A debit side entry must have a corresponding

credit side entry. Students listen attentively

For every transaction, there must be one or

more accounts debited and one or more
accounts credited.

Each transaction affects at least two accounts.

The total debits for a transaction must equal

the total credits.

An account is debited when an amount is

entered on the left side of the account and
credited when an amount is entered on the
right side.

Increases in assets are recorded as debits while

decreases in assets are recorded as credits.

Conversely, increases in liabilities and owner’s

equity are recorded by credits and decreases Students listen attentively
are entered as debits.

The rules of debit and credit for income and

expense accounts are based on the relationship
of these accounts to owner’s equity. Increases
in income are recorded as credits and
decreases as debits. Increases in expenses are
recorded as debits and decreases as credits
These are the rules of debits and credits.


In dealing with the topic (rules of debits and

credits), the students thinking skills will be
utilized through analysis of the different rules
of debits and credits and how to use it in
business transactions.

As the discussion goes on, the teacher will

present some simple business transactions and
asks the students to give the debits and credits
of each account and whether it increases or
decreases the accounts affected.


Aug. 1 Mr. Batulan started his new business Students will give their answers on the
by investing P250,000 questions asked
Aug. 5 Computer equipment costing
P178,000 is acquired on cash basis.

Aug. 10 Computer supplies in the amount of

P9,000 are purchased on account.
Students will give their answers on the
Aug. 12 Billed customers for services questions asked
rendered, P28,000.

Aug. 20 Made partial payment on supplies

acquired on account, P5,000.

Aug. 25 Received payment from customers

already billed, P10,000. Students participate actively

Aug. 28 Withdrew cash for personal use,



The class will be divided into groups,

(groupings will depend upon the number of
students). Each group must be given an
envelope with a problem and a sheet of index
Students participate actively
card inside. The index card already has T-
account for different accounts. The group must
fill in the debits and credits of each account in
a period of 2 minutes only. The group who
garnered the most number of correct items
must win the group activity.
Transactions inside the envelope:

Aug. 01 Mr. Keith invested P200,000 in the


Aug. 05 Bought office equipment on account,


Aug. 12 Billed clients P35,000 for services

already rendered during the month.
Students participate actively
Aug. 20 Keith partially paid P25,000 for the
Aug. 05 purchase of office equipment.

Aug. 23 Received cash of P30,000 from clients

for billing dated Aug. 12.

IV. Evaluation :

Quiz: Fill in the blanks (1/4 sheet of paper)

1. The Accounting equation states that Assets = __________ + _________

(Ans. Liabilities, Owner’s Equity)
2. An account is ________ when the amount is entered on the left side. (Ans. Debited)
3. An account is ________ when the amount is entered on the right side. ( Ans. Credited)
4. Decreases in assets are recorded as _______ (Ans. Credit)
5. Decreases in liabilities are entered as _______ (Ans. Debit)

V. Assignment :

(In ½ sheet of paper)

1. Research the steps in the Accounting Cycle and their Aim.

2. Define General Journal, The Ledger and The Journal.

Prepared By:


SHS Teacher II