Dacayanan, Mikhaella Rose M.

BS in Entrepreneurship 1-1
Fundamentals in Accounting 1

ASSESSMENT/ACTIVITIES

LESSON 1
SELF-CHECK

1. Determine what are those which can be considered as a thing of VALUE.

- Any desirable things with a worth of money are things with value, for example, land
property, car, house, living necessities, etc. The money received or parted during the transaction
can be recorded.

2. Identify the different types and forms of business.

I. Types of Business
a. Service Business - is an enterprise that provides a professional and legal delivery of work
or aid to complete a task for its customers' benefit and satisfaction.
b. Merchandising Business - is a commercial type of enterprise, which focuses on the act
of reselling purchased goods from a wide range of distributors to huge consumer
shopping facilities.
c. Manufacturing Business - is a large-scale enterprise that converts raw materials, parts,
and components into finished merchandising products.
d. Hybrid Business – is a two or more type of enterprise in the field of business.
II. Forms of Business
a. Sole proprietorship - is an unincorporated business owned and run by a single
individual. It is the simplest and most common structure as a starting point in doing
business.  
b. Partnership - is an association or relationship between two or more individuals,
corporations, trusts, or partnerships that join to carry on a trade or business.
c. Corporation - a form of business operation that declares the business as a separate, legal
entity guided by a group of officers known as the board of directors.
d. Limited Liability Company (LLC) – is a hybrid form of business which has a
characteristic of both partnership and a corporation.
e. Cooperative - is a member-owned business structure with at least five members, all of
whom have equal voting rights regardless of their level of involvement or investment. All
members are expected to help run the cooperative.
Dacayanan, Mikhaella Rose M.
BS in Entrepreneurship 1-1
Fundamentals in Accounting 1

EXERCISE 1.0

Instructions: Identify what transactions are considered as personal transaction (P) and
business transaction (B).
1. Bought for cash a new van, P3M, from Honda Civic Co. to be used in
business. B

2. Received utility bill for the month of September 2018 amounting to

P5,500.00. P

3. Sold for cash the old display cases used in the store, P1200. P

4. Purchase for cash stationery and supplies, P610, from Bing Educational
Supply. P

5. The business entered to a contract with the Manila Land Development Co, to
rent its building in the South harbor for use as a warehouse at a monthly rental
of P60,000.00. B

6. Received cash, P56,000.00, from a tenant on the tenth floor of our building
in payment of three month’s rentals in advance. B

7. Received cash, P65,000, from the proprietor as additional capital. B

8. Engaged the services of Atty. Miguel Ante to handle the case against a
delinquent customer for a fee of P6,000.00. P

9. Paid the office and store payrolls; P70,000., for the second month. P

10. The proprietor promised a friend that he would give a special discount to
him if he would buy all his household necessities from the store. B
Dacayanan, Mikhaella Rose M.
BS in Entrepreneurship 1-1
Fundamentals in Accounting 1

LESSON 2
SELF-CHECK

1. What is GAAP?
- GAAP stands for Generally Accepted Accounting Principles, these are
the combination of authoritative standards (set by policy boards), and
the commonly accepted ways of recording and reporting accounting
information.
2. What are the accounting standards used in the Philippines?
- The accounting standards used in the Philippines are PPSAS
(Philippine Public Sector Accounting Standards), used by government
agencies (public sector) issued by Commission on Audit, and IFRS
(International Financial Reporting Standards), used by private sectors
issued by IASB or the International Accounting Standards Board.

EXERCISE 2.0

Instructions: State the value received and the value parted with in each of the
following business transactions completed by The Lanzona Sales Enterprise during
May, current year:
a. Collected in full account the account of Emmanuel Herrera, P1,200.
Value received: money
Value parted with: The account of Emmanuel Herrera.
b. Received cash, P5,000.00, from Therese Anne Gregorio in payment of our
commission as agent in selling his house and lot
Value received: money
Value parted with: commission agent service
c. Bought for cash one new truck, P230,000.00, from Ford Motors Inc.
Value received: truck.
Value parted with: money

d. Paid cash, P850.00, to National Bookstore for the purchase of stationary

and supplies for use in the business
Value received: Stationery and supplies
Value parted with: money
Dacayanan, Mikhaella Rose M.
BS in Entrepreneurship 1-1
Fundamentals in Accounting 1

e. Paid the rent for the month on the space occupied by the
business, P100,000.00
Value received: the use of property
Value parted with: money

f. Sold for cash our old computer used in the business for P10,000,
Olive Cortez
Value receivable: money
Value parted with: old computer
g. Sold on account the old computer tables and chairs used in the business,
P12,000.00, to Lilia Cojuanco
Value received: accounts receivable
Value parted with: sales, the old computer tables and chairs.
h. Purchased on account a new notebook, P45,000, from Acer, Inc, for use in
the business.
Value received: Purchased new notebook
Value parted with: accounts payable, P45,000.

i. Bought on account gasoline, oils and greases, P740, from Philcoa Gasoline
Station for use by our delivery truck.
Value received: Purchased oils and greases
Value parted with: accounts payable, P740.
j. Paid in full our account with Acer, Inc, P45,000.
Value received: the use of account with Acer, Inc.
Value parted with: money

LESSON 3
Dacayanan, Mikhaella Rose M.
BS in Entrepreneurship 1-1
Fundamentals in Accounting 1

SELF-CHECK
1. What do you think is the importance of knowing the value received and the value
parted with in accounting?
- It is important to know the value of received and the value parted with because
for any transaction, the total of Debit amounts is equal to the total Credit amounts.
After every transaction, the total of the Debit balances should be equal to the total
of the credit balances. Failure to determine the two will create confusion and an
inorganize record, which may result into several accounting problems that will
affect an enterprise.

2. Enumerate the forms of values.

a. A form of property received by the business in exchange for money parted with.
b. A form of property with the business in exchange for money received.
c. Use of the property, or hire of the services, of another person is received by the
business in exchange for money parted with.
d. Use of property, or hire of the services, of the business is parted with by the
business in consideration of money received.
e. An oral promise to pay of another person is received by the business in consideration
for a thing of value parted with.
f. An oral promise to pay of the business parted with in consideration for a thing of
value received.
g. An oral promise to pay of another person is received by the business in consideration
for the hire of the services of the business.
h. The value parted with by the business is its oral promise to pay in consideration for
the hire of the personal services of another person.
i. The value parted with is the oral promise to pay of another person in exchange for the
hire of the property of the business.
j. The value parted with if the oral promise to pay of the business in exchange for
the hire of the property of another person.
k. The value received by the business is the cancellation of his oral promise to
pay in consideration for money parted with.
l. The value parted with by the business is the cancellation of the oral promise to pay of
another person in exchange for money received.
m. The value parted with by the business is its implied promise to safeguard the
property interest in consideration for money or property received.
n. The value received by the business is a reduction of its responsibility to
safeguard the proprietary interest in consideration for money or property
parted with.

EXERCISE 3.0
Instructions: Using the previous exercise (The Lanzona Sales Enterprise), kindly
Dacayanan, Mikhaella Rose M.
BS in Entrepreneurship 1-1
Fundamentals in Accounting 1

provide the correct account title of the debit (value received) and the credit (value
parted with):

Details of Transactions Value Received (Debit) Value Parted With

(Credit)

Collected in full account money The account of Emmanuel

the account of Emmanuel Herrera.
Herrera, P1,200

Received cash, P5,000.00, money commission agent service

from Therese Anne
Gregorio in payment of our
commission as agent in
selling his house and lot

Bought for cash one new truck money

truck ,
P230,000.00, from Ford
Motors Inc.
Dacayanan, Mikhaella Rose M.
BS in Entrepreneurship 1-1
Fundamentals in Accounting 1

Paid cash, P850.00, to Stationery and supplies money

National Bookstore
for the purchase of
stationary and

Paid the rent for the month the use of property money
on the space
occupied by the business,
P100,000.00

Sold for cash our old money old computer

computer used in the
business for P10,000, Olive
Cortez
Dacayanan, Mikhaella Rose M.
BS in Entrepreneurship 1-1
Fundamentals in Accounting 1

Sold on account the old accounts receivable sales, the old computer
computer tables tables and chairs.
and chairs used in the
business,
P12,000.00, to Lilia
Cojuanco

Purchased on account a Purchased new notebook accounts payable, P45,000

new notebook,
P45,000, from Acer, Inc,
for use in the
business

Bought on account Purchased oils and greases accounts payable, P740.

gasoline, oils and
greases, P740, from
Philcoa Gasoline
Station for use by our
delivery truck

Paid in full our account The use of account with money

with Acer, Inc, Acer, Inc.
P45,000.
Dacayanan, Mikhaella Rose M.
BS in Entrepreneurship 1-1
Fundamentals in Accounting 1