DETAILED LESSON PLAN

IN FUNDAMENTALS OF ACCOUNTANCY,
BUSINESS AND MANAGEMENT 1

Grade: 11
Course Title: Fundamentals of Accountancy, Business and Management 1
Content: The Accounting Equation
Content Standards: The Accounting Equation
Performance Standards: Solve Problems Applying the Accounting Equation

Learning Competencies:
ABM_FABM11-lllb-c18
Perform operations involving simple cases with the use of accounting equation.

I. OBJECTIVES:
At the end of the lesson, the students will be able to:
a) Define Assets, Liabilities, and Owner’s Equity.
b) Illustrate the accounting equation.
c) To solve problems involving the accounting equation.

II. SUBJECT MATTER:

A. Topic: The Accounting Equation
B. Reference: Basic accounting made easy (Win Ballada) pages 6-26
C. Materials: Cellphones w/ internet access, Projector, & Laptop
D. Subject integration: The student will demonstrate understanding of the
mathematical processes and tools used in problem solving.

III. PROCEDURE
TEACHERS ACTIVITY STUDENTS ACTIVITY
A. Preliminaries:
Greetings
Good Morning class! Good Morning ma’am!

B. Prayer:
Before we start our class, please let us all (Students will read the Prayer in the
stand and let us pray. Presentation.)

C. Checking of attendance:
May I know from the attendance officer
who are absent today?
None ma’am!
Very Good!

D. Motivation:

I will group you by five, please arrange (Students will participate in the activity.)
your chairs to form a circle. I will be giving
you flash cards for you to write on your
answer. Choose the letter of the best
answer of the questions in the
presentation.

May I please request students to please

come in front to click their answer.
 E. Lesson proper:
F. Presentation of the lesson:

Activity # 1. (Students will participate in the activity.)

Perform the following activity in group. Fill in the
concept map. What terminologies can you relate
to Assets, liabilities and owner’s equity?

After the activity:

May I request a member of your group to discuss The assigned member will discuss their output.
your collaborative output?

As you have discussed a while ago.

An Asset is something that is:

 Controlled by the enterprise.
 Past events.
 Future economic benefits.

Liabilities are:
 Obligations
 Transfer economic benefits
 Past transaction or events
 Complementary nature of assets and
liabilities

Owner’s Equity is the residual interest in the assets

of the enterprise after deducting all its liabilities. It
is the capital of the entity, affected by income
withdrawals, and expenses.

Activity # 2.
Fill in the amount of the missing element of
financial position.
ASSETS LIABILITIES OWNER’S
EQUITY
1. 760,000 360,000 ?
2. 860,000 ? 592,000
3. ? 108,000 -60,000
4. 626,000 376,240 ?
5. ? 800,000 (100,000)
(Students will raise their hands)
How did you come up with the missing elements of
the financial position?

Yes joyce?
We come up with the amounts by substituting the
given values to the equation:
Assets = Liabilities + Owner’s Equity
Very Good!

We used the basic mathematical processes like

What mathematical processes/ Equation had you
transposition and the rules of adding and
used in finding the missing element?
subtracting integers.
Example
ASSETS LIABILITIES OWNER’S EQUITY Solution:
760,000 360,000 ? Finding for the OE : Assets = Liabilities + OE
Very Good! OE = Assets - Liabilities
OE = 760,000 – 360,000
OE = 400,000
1.
ASSETS LIABILITIES OWNER’S EQUITY Solution:
860,000 ? 592,000 Finding for the Liabilities: Assets = Liabilities + OE
Very Good! Liab. = Assets - OE
Liab. = 860,000 – 592,000
Liab. = 268,000
2.
ASSETS LIABILITIES OWNER’S EQUITY Solution:
? 108,000 -60,000 Finding for the Assets: Assets = Liabilities + OE
Assets = Liab + OE
Very Good! Assets = 108,000 + (60,000)
Assets = 48,000

3.
ASSETS LIABILITIES OWNER’S EQUITY Solution:
626,000 376,240 ? Finding for the OE : Assets = Liabilities + OE
Very Good! OE = Assets - Liabilities
OE = 626,000 – 376,240
OE = 249,760
4.
ASSETS LIABILITIES OWNER’S EQUITY Solution:
? 800,000 (100,000) Finding for the Assets: Assets = Liabilities + OE
Very Good! Assets = Liab + OE
Assets = 800,000 + (100,000)
Assets = 700,000

Always keep in mind that the equality of the

accounting equation must be maintained. It must
be balanced every time.

Class; let us have another activity

Compute the amount of the missing element of

the financial position.

1. Jimmy Delgado Pest control has assets of Solution:

P600, 000 and owner’s equity of P450, Finding for the Assets: Assets = Liabilities + OE
000. Assets = Liab + OE
600,000 = liabilities + 450,000
Liabilities = 600,000 – 450,000
Liabilities = 150,000

Solution:
2. Margie Clavano Realtors has liabilities of
Finding for the Assets: Assets = Liabilities + OE
P530, 000 and owner’s equity of P410, Assets = Liab + OE
000. Assets = 530,000+ 410,000
Liabilities = 530,000 – 410,000
Liabilities = 120,000
 3. Marko Fuentes Plumbing Contractor has Solution:
assets of P473, 000 and liabilities of Finding for the Assets: Assets = Liabilities + OE
P 153,700. Assets = Liab + OE
473,000 = 153,700+ OE
OE = 530,000 – 410,000
OE = 315,300
G. Generalization:
What have you learned in our topic today? (Students will raise their hands)

We have learned about the accounting equation.

Yes Joy?

Very Good.

H. Valuing :

What can you say about the quotation in Students will share their thoughts about the
the picture? How can you relate it with quotation and how they can relate it in the lesson.
our lesson?

IV. EVALUATION:

E1. Fill in the amount of the missing element of financial position.

Assets Liabilities OE

1. 125,000 ? (256,000)
2. (86,000) ? 110,000
3. ? 250,000 122,600

E2. Compute the amount of the missing element of the financial position.

1. Robinsons Alicia has liabilities of P147, 000 and Owner’s equity of P236, 500.

2. At the beginning of the year, Rego Marketing had Liabilities of P100, 000 and Owner’s equity of
P96, 000.
If assets Increased by P40, 000 and Liabilities decreased by P30, 000, what was the owner’s
equity at the end of the year?

3. The liabilities of Jollibee company equal one-third of the total assets, and the
Owner’s equity is P240, 000. What is the amount of the liabilities?

V. ASSIGNMENT:

List the 5 major accounts define each and give at least 2 examples per account.