Dynamic Learning Program (DLP 1) Fundamentals of Accounting Business and Management Trisha Jane S. Torres

ARELLANO UNIVERSITY
Juan Sumulong Campus

2600 Legarda St., Sampaloc, Manila
SENIOR HIGH SCHOOL DEPARTMENT
School Year 2021-2022
DYNAMIC LEARNING PROGRAM (DLP 1)

FUNDAMENTALS OF ACCOUNTING BUSINESS AND MANAGEMENT
TRISHA JANE S. TORRES

NAME: ____________________________________ DATE:________________________
GRADE & SECTION:__________________________ TEACHER:_____________________
I. TOPIC: Accounting Equation

II. LEARNING GOAL: The students should be able to:
a. Illustrate the accounting equation.

b. Define Assets, Liabilities and Equity.
c. Solve problems applying the accounting equation
III. CONCEPTS:
IV. ACCOUNTING EQUATION - The accounting equation is considered to be the foundation of the
double-entry accounting system. The accounting equation shows on a company's balance sheet
whereby the total of all the company's assets equals the sum of the company's liabilities and
shareholders' equity.
Assets = Liabilities + Equities
It shows that assets owned by a company are coupled with claims by creditors and lenders, and by
the owners of the business.
ASSETS = LIABILITIES + EQUITY
ASSETs - LIABILITIES = EQUITY
ASSETS – EQUITY = LIABILITIES
Assets + Contributed Capital + Beginning Retained Earning + Revenue – Expenses – Dividends +

Liabilities
What are those Accounts Under Assets ?
• Cash Furniture and Fixture s
• Accounts Receivable Machinery and Equipment
• Prepaid Expenses Land
• Investments Building
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• Inventory
What are those Accounts Under Liabilities ?
• Accounts Payable
• Notes Payable
• Loans / Mortgage Payable
• Bonds
• Lease
What are those Accounts Under Equity ?
• Share Holders Equity
• Capital Stocks / Owners Capital
• Retained Earnings
V. ACTIVITY/EXERCISES 1:
Apply it in real life
You are an accountant of the Morisqueta Tostada Restaurant with the following
transaction for the month of October. Prepare the worksheet using the accounting
equation.
Write your answer on the space provided below.
Follow transaction 1, 2, 3 & 6 as example guide. Fill in what is missing in the table
to complete your answer.
20 October Owner made initial investment of P 1,500,000.00

22 October Purchased kitchen tools, supplies, and equipment at P750,000 on a
60-day Credit.
23 October Purchased tables and chairs for P65,750 paid in cash.
23 October Paid rental for space for the month amounting to P15,000 and one-
month deposit of P15,000.
26 October Purchased ingredients for food preparation with the total of P4,500.
Dining and take-out receipts with a total of P5,875.
ARELLANO UNIVERSITY

29 October Owner made a personal withdrawal of P200,000.
Morisqueta Tostada
Worksheet for Financial Transaction
For the period 1-29 October
In Philippine peso
Date Trans no. Transaction Asset (P) = Liabilities (P) Capital (P)
20 1 Owner’s 1,500,000.00 1,500,000
October investment
(Initial
22 2 Purchase of 750,000.00 750 000.00
October kitchen tools
and
equipment on
account; 60
days
23 3 Purchase of (65,750.00)
October table and
chair cash
23 3 Purchase of 65,750.00
October table and
chairs
23 4 Paid rental for 15,000.00 (15 000.00)
October space for the
month
23 5 Owner’s 15,000.00 15,000.00
October investment
26 6 Purchases- (4,500.00) (4 500.00)

October Food
preparation
26 6 Dinning and 5,875.00 5,875.00
October take out
27 7 Purchaaed 4,000.00 4,000.00
October ingredients
for food
preparation
27 7 Dining and 6,250.00 6,250.00
October take-out
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28 8 Purchaaed 4,000.00 4,000.00

October ingredients
for food
preparation
28 8 Dinning and 5,200.00 5,200.00
October take out
29 9 Owner made 200,000.00 200,000.00
October a personal
withdrawal
VI. ACTIVITY/EXERCISES 2:
For each transaction, tell whether the assets, liabilities, and equity will increase (I), decrease (D),
or is not affected (NE).
A L E
1. The owner invests personal cash in the business __I__ _NE__ _I__
2. The owner withdraws business assets for personal use. ___D__ __NE___ __D__
3. The company receives cash from a bank loan ___I__ __I___ __NE__
4. The company repays the bank that had lent money. ___D__ ___D__ __NE_
5. The company purchases equipment with its cash. __D___ __NE___ __D_
6. The owner contributes her personal truck to the business. __I___ __NE___ __D_
7. The company purchases supplies on credit ___I__ __I___ ___NE__
8. The company purchases land by paying half in cash and
signing a note. ___D__ __D___ __NE__
9. The owner withdraws cash for personal use. __D___ __NE___ __D_
10.The company repays the supplier __D___ __D___ _NE___
ARELLANO UNIVERSITY
ARELLANO UNIVERSITY
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ARELLANO UNIVERSITY

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ARELLANO UNIVERSITY

Juan Sumulong Campus

DYNAMIC LEARNING PROGRAM (DLP 1)

TRISHA JANE S. TORRES

I. TOPIC: Accounting Equation

a. Illustrate the accounting equation.

Assets = Liabilities + Equities

ASSETS = LIABILITIES + EQUITY

ASSETs - LIABILITIES = EQUITY

ASSETS – EQUITY = LIABILITIES

Assets + Contributed Capital + Beginning Retained Earning + Revenue – Expenses – Dividends +

What are those Accounts Under Assets ?

• Cash Furniture and Fixture s

• Accounts Receivable Machinery and Equipment

• Prepaid Expenses Land

What are those Accounts Under Liabilities ?

• Loans / Mortgage Payable

What are those Accounts Under Equity ?

• Share Holders Equity

• Capital Stocks / Owners Capital

Write your answer on the space provided below.

20 October Owner made initial investment of P 1,500,000.00

Dining and take-out receipts with a total of P5,200.

26 6 Purchases- (4,500.00) (4 500.00)

28 8 Purchaaed 4,000.00 4,000.00

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