G10 ENTREP 3rd Quarter-Bookkeeping

SPTVE
Learning Material
G10 in
MANDATORY
ENTREPRENEURSHI
P
3rd Quarter
1
TNTS/SPTVE/ENTREPRENEURSHIP10/LEARNINGMATERIAL grcamaganacan/clabad
TANZA NATIONAL TRADE SCHOOL
Technical Vocational Education
SPTVE – G10 Mandatory
Weekly Learning Activity Sheet
Table of Contents Pages
Duration/Date
Introduction
Quarter III
Lesson 1 Perform Actual Selling of Products/Services Week 1-2

LO1
Pretest 1 7
Info Sheet 1.1 8
Info Sheet 1.1a 8
Self-Check 1.1 13
Activity Sheet 1.1 14
Lesson 2 Prepares and maintains financial records and reports Week 3-8
LO1
Info Sheet 1.1 19
Self Check 1.1 22
Activity Sheet 1.1.1 23
Info Sheet 1.2 25
Info Sheet 1.3 27
Self Check 1.3.1 33
Self Check 1.3.2 33
References 37
2
This Learning Material helps you to find out the selling processes of
product/services and simple bookkeeping of a small businesses. It covers 2 common
competencies that a Grade 10 Technical Vocational Education (TVE) student like you ought
to possess, namely:
1.) Perform actual selling of products or services

2.) Prepares and maintains financial records and reports Introduce product/service to
the market
These 2 common competencies are covered separately in 2 Lessons. As shown below,

each Lesson is directed to the attainment of one or two learning outcomes:
Lesson 1 – Perform actual selling of products or services

LO 1 – Actual selling of products or services
Lesson 2 – Prepares and maintains financial records and reports

LO 1. Journalize transactions
3
How Do You Use This Learning Material?
This Learning Material has 4 Lessons. Each Lesson has the following:
• Learning Outcome/s
• Performance Standard
• Materials /Resources
• Definition of Terms
• What Do You Already Know?
• What Do You Need to Know?
• How Much Have You Learned?
• How Do You Apply What You Have Learned?
• How Well Did You Perform?
• What is your Score?
• References
To get the most from this Learning Material, you’ve got to do the following:
• Begin by reading and understanding the Learning Outcome/s and Performance Standard/s.
These tell you what you should know and be able to do at the end of this learning materials.
• Find out what you already know by taking the Pretest then check your answer based on the
Answer Key. If you get 99 to 100% of the items correctly, you may proceed to the next Lesson.
This means that you have no need to go through the Lesson because you already know what it
is supposed to teach you. If you failed to get 99 to 100% of the items correctly, repeat the
Lesson and review especially those items which you failed to get.
• Do the required Learning Activities. It begins with one or more Information Sheets. An
Information Sheet contains important notes or basic information that you need to know. After
reading the Information Sheet, test yourself on how much you learned way of the Self-check.
Refer to the Answer Key for correction. Do not hesitate to go back to the Information Sheet
when you do not get all test items correctly. This will ensure your mastery of basic information.
• It is not enough that you acquire content or information. You must be able to demonstrate
what you learned by doing what the Activity / Operation /Job Sheet directs you to do. In other
words, you must be able to apply what you learned in real life.
• How well did you perform? Accomplish the Scoring Rubrics. Each Lesson also provides you
with references and definition of key terms for your guide. They can be of great help. Use them
fully.
If you have questions, don’t hesitate to ask your teacher for assistance.
4
LESSON 1
Perform actual selling of products

or services
LEARNING OUTCOMES:
At the end of this lesson, you are expected to do
the following
LO 1. Actual selling of products or services
5
DEFINITION OF TERMS
Selling - the exchange of a particular products/services for a certain amount of money. It is

the last step in the chain of commerce where a buyer exchanges cash for a seller’s goods or
services.
Price/value - is a market value, or agreed exchange
Selling terms - is the length of time a seller allows a buyer to pay for the goods or services sold on
credit.
Selling Techniques - is the process of approaching prospective customers or clients who were not
expecting such an interaction.
- Body of methods used in the profession of sales
Sales Strategies - is the planning of sales activities including methods of reaching clients,
competitive differences and resources available.
Sales Tactics -involves the day-to-day selling such as prospecting, sales process, and follow-up.
Cold Calling - the process of approaching prospective customer or clients who were not expecting
such an interaction
Direct Selling - face-to-face presentation, demonstration and sale of products or services,
usually at the home or office of a prospect buyer
Persuasive Selling - selling that requires the convincing ability of the seller to persuade his buyer
LEARNING OUTCOME 1
Actual Selling of Products or Services
PERFORMANCE STANDARDS
The learner conducts actual selling of products or services, applies marketing and management strategies, docum
Objectives:
By the end of this session students will learn;
A. Conduct actual selling of products or services based on the business plan.

B. Apply marketing strategies and sales management based on the marketing plan.
C. Analyze and interpret results of the actual selling of products or
services and recommend actions for the next operation.
6
Materials
What Do You Already Know?
Let us find out what you already know. Read and understand the questions below and then write
the letter of the correct answer on your answer sheet.
Pre-Test LO1
Directions: Let us find out how much you already know about actual selling of products or
services. Complete the statements below honestly. Write the words on the blank provided to
complete the statement. Choose the answer from inside the box.
Persuasive Selling Selling
Sales Strategies Direct Selling
Sales Tactics Cold calling
______________1. face-to-face presentation, demonstration and sale of products or services,

usually at the home or office of a prospect buyer.
_____________ 2. involves the day-to-day selling such as in prospecting, sales process, and
follow-up.
______________3. selling that require the convincing ability of the seller to persuade his buyer.
______________ 4. is the planning of sales activities including methods of reaching clients,

competitive differences and resources available .
_______________5. the exchange of a particular products/services for a certain amount of

money. It is the last step in the chain of commerce where a buyer exchanges cash for a seller’s
goods or services.
______________ 6. The process of approaching prospective customers or clients who

were not expecting such an interaction.
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What Do You Need To Know?
Read the Information Sheet 1.1 very well then find out how much you can remember and how
much you learned by doing Self-check 1.1
Information Sheet 1.1
ACTUAL SELLING OF GOODS OR SERVICES
Most successful entrepreneurs believe that there are ideal techniques in actual selling.
However, based on the experiences of successful entrepreneurs our module offers some selling
strategies which might be useful for your enterprise. A good seller is good in asking questions to
determine the customer’s needs and desires. This knowledge will help you gain customers who
will be willing to pay for your product or service. On the other hand, you should be much more
knowledgeable about your product or service than your prospects. You must also offer valuable
information and insights to the decision-making process of your client.
In today's economy, big and small businesses are seeking every opportunity to win sales
through competitive advantages. Smart owners of small business know a sales strategy can create
a competitive advantage.
Selling consists of two main functions: tactics and strategy. Sales strategy is the planning of
sales activities including methods of reaching clients, competitive differences and resources
available. Tactics involves the day-to-day selling such as prospecting, sales process, and follow-up.
The tactics of selling are very important but equally vital is the strategy of sales. The advantages
are too compelling to ignore.
Competitive Advantages of Strategic Sales Planning
 Increased closing ratio by knowing client’s hot buttons

 Improved client loyalty by understanding needs
 Shorten the sales cycle with outside recommendations
 Outsell competitors by offering the best solution
Information Sheet 1.1a
KINDS OF SELLING STRATEGIES
1. Cold Calling - the process of approaching prospective customers or clients, typically via
telephone who were not expecting such an interaction. The word "cold" is used because the
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person receiving the call is not expecting a call or has not specifically asked to be contacted by a
sales person.
2. Consultative Selling – in which a salesperson plays the role of a consultant. The seller assists
the buyer in identifying his or her needs, and then suggesting products that satisfy those needs.
3. Direct Selling – face-to- face presentation, demonstration and sale of products or services,
usually at the home or office of a prospect by the independent direct seller. Modern direct selling
includes sales made through the party plan, one-on-one demonstrations, and other personal
contact arrangements as well as internet sales.
4. Persuasive Selling – selling that requires the convincing ability of the seller to persuade his
buyer according to the compelling reasons why the buyers need to buy your enterprise.
5. Guaranteed sale – selling arrangements under which a manufacturer or supplier takes back the
goods that remain unsold after a specified period. The seller (manufacturer/supplier) remains the
owner of the goods until they are paid for in full and, after a certain period, takes back the unsold
goods.
6. Needs-based selling – where the salesperson doesn't "sell"; instead she or he helps the
prospect or customer make an informed purchasing decision based on their identified needs.
7. Hard-sell approach – an approach to selling in which the salesperson puts pressure on the
buyer to make a commitment to purchase, an approach typical of the period of the "selling era"
from the 1930s to 1950s.
8. Heart Selling – is the art of opening your potential clients into what they most want in their
life. No manipulation. No weird sales techniques. Just making your services as attractive as
possible and helping your potential clients make a smart decision to help them get what they
want.
9. Relationship Selling – selling in which the primary objective is the building of long-term
relationships with customers from which repeat business will flow.
10. Price-based Selling – is a specific selling technique in which a business exclusively
reduces their price in attempt to close the sales cycle. Price-based selling clearly exists in
businesses such as commodity sales, auto sales, hospitality, and even some of retail stores.
11. Solution selling – common method of selling that is dependent on identifying needs of
the prospect or customer and including appropriate benefits in a package or solution.
12. Target account selling – is a structured, repeatable methodology that enables sales
organizations to shorten selling cycles, establish clear, unique business value with customers,
reduce selling costs through more efficient resource allocation.
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Personal Selling Process
To gain success in selling, there are two processes that entrepreneurs may follow depending on
their personal considerations.
NEEDS-BASED SELLING PROCESS
====>prospecting
====>preapproach/approach
====>needs assessment
====>presentation
====>questions/objections
====>gaining commitment/close
====>follow-up
Needs-based selling process is a seven-step approach that has been found to be beneficial in sales.
These steps are: prospecting, preapproach/approach, needs assessment, presentation, questions/
objections, gaining commitment, and follow up.
1. Prospecting is the step where salespeople identifies potential customers. After they figure out,
they must determine whether these prospects will likely to buy. Qualified prospects are those
who have a need for the product, can afford the product, and are willing to be contacted by
salesperson. For every qualified prospects, a salesman has to consider some of these questions.
Questions used in qualifying a prospects;
 Does the person need the products or service that I am offering?

 Does the person perceive the need?
 Does the person have sincere desire to fulfill his needs?
 Can this need be converted into a want for the product/service that I am offering?
 Does the individual have the ability to pay?
 Will the transaction with this person be profitable?
2. Preapproach is used for preparing for the presentation. This consists of customer research and
goal planning for the presentation. Then comes the approach. This is when the salesperson initially
meets with the customer. It is helpful to schedule an appointment to ensure capturing the buyer’s
attention. Since first contact leaves an impression on the buyer, professional conduct – including
attire, a handshake, and eye contact – is advised.
3. The next step is the needs assessment. Salespeople should evaluate the customer based on the
need for the product. They should ask questions to reveal the current situation, the source of any
problems, the impact of the problems, the benefits of the solution, and the interest of the buyer.
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4. Once the salesperson knows the needs, he or she is ready for the presentation. The point of
this is to grab the customer’s Attention, ignite Interest, create Desire, and inspire Action, or AIDA.
The salesperson can do this through product demonstrations and presentations that show the
features, advantages and benefits of the product.
5. After this comes meeting questions/objections. Customers who are interested will voice their
concerns, usually in one of four ways: they might question the price or value of the product,
dismiss the product/service as inadequate, avoid making a commitment to buy, or refuse because
of an unknown factor. Salespeople should do their best to anticipate objections and respectfully
respond to them.
6. Then, gaining commitment comes next. The salesperson can use several different sales closes
to move the sale forward. They can use the ‘alternative close,’ the ‘assumptive close,’ the
‘summary close,’ or the ‘special-offer close,’ among others.
7. Finally, the salesperson must remember to follow up. Following up will ensure customer
satisfaction and help establish a relationship with the customer.
Another way to gain success in selling is through the following steps:
SUCCESS
Build Long-Term Relationship

(follow-up sales)
Closing
Handling Objections
Sales Presentation
o Stimulus response
o Formula selling
o Canned presentation
o Needs satisfaction
Prospecting
o Referrals
o Qualifying
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SELLING
In these steps, the different activities should be followed:
Prospecting – the step where salespeople determine prospects. You can get prospects from a
number of sources who are likely to buy. Oftentimes, referral from existing customers is the best
way. What you only need to do is ask. They figure out potential customers. On the other hand,
qualifying prospects is an activity where you are trying to determine whether you are likely to
buy. The importance of this is based on the premise that not all prospects meet the criteria to buy.
Qualified prospects are those who have a need for the product, can afford the product, and are
willing to be contacted by the salesperson.
1. Sales Presentation – It is the time when you are presenting your product or service to your
customers with the objective to stimulate further their interest. Oftentimes, this activity begins
with open - ended questions. It helps you discover what your customers want and need. There are
at least four types of presentation. One is stimulus –response where you try to offer the necessary
information (stimulus) at the right time to make your clients buy (response). Secondly, formula
selling is more thorough in providing your product information. The advantage of this is that it
reduces the risk of losing important information. Thirdly, canned presentation is presenting what
you have memorized or just doing it by reading. Finally, needs satisfaction involves asking
questions and listening to customers’ answers to identify their needs and desires.
2. Handling objections – Usually, prospects are objecting based on costs, benefits or both. They
also do it because they do not see the necessity to buy. Others do the objection because they
want the deal to be more beneficial for them. In this step you need to be patient and demonstrate
interest in you clients’ need.
3. Closing – This is one of the important steps because in this stage you will ask your client’s
orders and secure their commitment to purchase. Oftentimes, you will be the one to initiate the
closing.
4. Build Long-Term Relationships – Closing is not the end of selling but the beginning of your
long-term relations with the customers. It involves follow-up sales to see to it that they are
satisfied with your enterprise. William A. O’Connell, a management specialist, came up with a
conclusion in his research that conducting the follow-ups is necessary to obtain repeat sales from
existing customers. It also costs about half the amount needed to close a sale with a new
customer.
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How Much Have You Learned?
SELF-CHECK 1.1
Directions: Write the letter of your answer in the space provided before the number: Encircle
the correct answer of the statement below.
1. A face-to-face presentation, demonstration and sale of products or services, usually at the

home or office of a prospect buyer.
a. Direct Selling b. Consultative Selling
b. Heart Selling c. Solution Selling
2. A common method of selling that is dependent on identifying needs of the prospect or
customer.
a. Direct Selling c. Consultative Selling
b. Heart Selling d. Solution Selling
3. A selling that require the convincing ability of the seller to persuade his buyer.
b. Persuasive Selling d. Cold Calling
4. The seller assists the buyer in identifying his or her needs, and then suggesting products that
satisfy those needs.
a. Selling c. Consultative Selling
b. Prospecting d. Cold Calling
5. A selling arrangements under which a manufacturer or supplier takes back the goods that
remain unsold after a specified period.
a. Guaranteed Selling c. Consultative Selling
b. Prospecting d. Cold Calling
6. A selling in which the primary objective is the building of long-term relationships with
customers
b. Relationship Selling d. Cold Calling
7. An approach to selling in which the salesperson puts pressure on the buyer to make a
commitment to purchase.
b. Heart Selling d. Hard-sell Approach
8. The process of approaching prospective customers or clients, typically via telephone.
b. Heart Selling d. Cold Calling
9. Where the salesperson doesn't "sell"; instead she or he helps the prospect or customer
a. Direct Selling b. Consultative Selling
b. Needs-based Selling c. Cold Calling
10. It is a specific selling technique in which a business exclusively reduces their price in attempt
to close the sales cycle.
a. Price-based Selling b. Consultative Selling
b. Heart Selling c. Cold Calling
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LET US APPLY WHAT
YOU HAVE LEARNED
Name: Grade & Section_______________________
ACTIVITY 1.1
Let us now consider the following steps in selling. This activity aims to show your capability in
actual selling by sharing your views on given situations.
1) If you have a small carinderia, what selling strategy would you employ in a pandemic situation?
Explain why?
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
______________________________________________________________
2) Among the selling strategies, list down at least five most common and applicable to your
chosen business.
3) If you engage to a buy and sell business, write down the steps to gain success in selling to your
clients.
4) In your proposed business, list down at least five possible prospects where number one is your
major prospect and number five is your least prospect. You may choose from the box below or you
may write your own.
relatives church mates schoolmates
neighbors friends
5) Considering your list of prospects, explain why they are their respective rank.
3.1 __________________________________________
3.2 __________________________________________
3.3 __________________________________________
3.4 __________________________________________
3.5 __________________________________________
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No. of Prospects No. of Prospects Who No. of Products Sold/
Approached Purchased your Service Secured
Products / services
Performance Sheet 1.1

Performance Activity
Using the knowledge and insights you have learned from this lesson, do an ACTUAL SELLING of
your product or service this week–end (Saturday/Sunday). Prepare a report on the actual selling
done for presentation and submission on next week. Use the table below as part of your report.
Below is a Reflection Chart which will determine whether you will continue or not as an
entrepreneur. Rank yourself accordingly from scale of 1 to 5, if you get a total of 3 and above,
then, you are a promising entrepreneur.
Finally, state your reasons why you want to continue as an entrepreneur or not. You may share
your experience.
REFLECTION CHART OF THE WOULD-BE ENTREPRENEUR

1 2 3 4 5
1. I am a risk-taker
2. I can easily decide for
others.
3. I easily get mad at
problems.
4. I feel irritated if I failed to
meet my expectations.
5. I am glad to meet people.
( ) I want to continue to become a successful entrepreneur because
___________________________________________________________________.
( ) I do not want to continue as an entrepreneur because

___________________________________________________________________.
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REFERENCES
RESOURCES:
Resources depend upon the project plan made by students based

on their business enterprise.
REFERENCES:
Almonte, Crispina B. et.al. Learning from small business. Anvil

Publishing Inc. 2007
Mullins, John W. The new Business Road Test, Prentice Hall, Great
Britain 2003
Manu, George et.al. How to Elaborate One’s Own business.
International Training Center of the ILO, 2005
O’Connell, William A. “The Shapes of Things to Come” Sales and
Marketing Management, January 1990 pp 36 - 41
Congratulations! You did a great

job! Rest and relax a while then
move on to the next lesson. Good
luck!
16
LESSON 2
prepares and maintains financial records and reports
LEARNING OUTCOMES :
At the end of this Lesson, you are expected to
do
the following:
LO 1. Journalize transactions
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DEFINITION OF TERMS
Accounting – It is a systematic process of identifying, recording, measuring, classifying, verifying,

summarizing, interpreting and communicating financial information. It reveals profit or loss for a
given period, and the value and nature of a firm's assets, liabilities and owners' equity.
Bookkeeping - Bookkeeping involves the recording, on a daily basis, of a company’s financial

transactions. With proper bookkeeping, companies are able to track all information on its books to
make key operating, investing, and financing decisions.
Financial statements are used by investors, market analysts, and creditors to evaluate a
company's financial health and earnings potential.
Trial Balance is a list of closing balances of ledger accounts on a certain date and is the first step
towards the preparation of financial statements. It is usually prepared at the end of an accounting
period to assist in the drafting of financial statements.
Income statement is a financial statement that shows you how profitable your business was over
a given reporting period. It shows your revenue, minus your expenses and losses.
A Statement of Owner's Equity shows the changes in the capital account due to contributions,
withdrawals, and net income or net loss. The Statement of Owner's Equity, which is prepared for
the sole proprietorship type of business, shows the movement in capital as a result of those four
elements.
Balance sheet is a financial statement that reports a company's assets, liabilities and shareholders'
equity.
LEARNING OUTCOME 1
Journalize Transactions
PERFORMANCE STANDARDS
The learner prepares journal entry.
Objectives:
By the end of this session students will learn to;
A. Identify the different accounting terminologies

B. Classify the accounts.
C. Prepare chart of account
D. Apply the rules of debit and credit
E. Analyze transactions.
F. Prepare journal entry
Read the Information Sheet 1.1 very well then find out how much you can remember and
how much you learned by doing Self-check 1.1.
ACCOUNTING TERMINOLOGIES
Accounting is a very necessary subject in the field of commerce. It is very hard to

imagine business without accounting. Accounting terminology gives the complete description of the
terms that are used and it is important to know the accounting terminology before delving into the
subject.
Assets - resources owned by a company and which have future economic value that can be
measured and can be expressed in cash.
Current assets - are assets which can easily be converted into cash or used to pay-off
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current liabilities within one year.
 Cash on Hand - consists of un-deposited collections
 Cash in Bank - made up of bank accounts that are unrestricted as to withdrawal
 Accounts Receivable - receivables from customers arising from rendering of
services or sale of goods
 Notes Receivable - receivables from customers which are backed up by promissory
notes
 Allowance for Bad Debts - a contra-asset account deducted from Accounts
Receivable. It represents the estimated uncollectible amount of the receivable.
 Office Supplies includes pens bondpapers, scissors, carbon paper and other office
materials.
Non-current - assets are assets which represent a longer-term investment and cannot be
converted into cash quickly. They are likely to be held by a company for more than a year.
 Land, Building, Machinery, Equipment, Office Equipment, Delivery
Equipment, Furniture and Fixtures,
 Accumulated Depreciation - a contra-asset account deducted from the related PPE
account. It represents the decrease in value of the asset due to continuous use,
passage of time, wear & tear, and obsolescence.
 An intangible has no physical form but from which benefits can be derived and its
cost can be measured reliably.
Intangibles include Patent for inventions, Copyright for authorship, compositions
and other literary works, Trademark, Franchise, Lease Rights, and Goodwill.
Liabilities - A liability is technically defined as a "present obligation of an enterprise arising from

past transactions or events, the settlement of which is expected to result in an outflow from the
entity of resources embodying economic benefits".
Current liabilities are short-term in nature.
 Accounts Payable - refers to indebtedness that arise from purchase of goods, materials,
supplies or services and other transaction in the normal course of business operations
 Notes Payable - obligations that are evidenced by promissory notes that are to be paid
within 1 year
 Income Tax Payable - current income tax obligation of the company payable to the
government
 Withholding Tax Payable - includes wage taxes withheld from employees that will be
remitted to the appropriate government agency. Separate accounts for Social Security
Payable and Medicare Payable are also often used
 Accrued Expenses - expenses already incurred but not yet paid. Accrued expense accounts
include: Salaries Payable, Rent Payable, Utilities Payable, Interest
Payable, Telecommunications Payable, and other unpaid expenses
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 Unearned Revenues - represents advanced payments from customers which requires
settlement through delivery of goods or services in the future
Non-Current liabilities are long-term obligations, i.e. expected to be settled beyond one year.
 Long-Term Notes Payable - obligations evidenced by promissory notes which are to be
paid beyond 1 year; also commonly referred to as Loans Payable
 Bonds Payable - liabilities supported by a formal promise to pay a specified sum of money
at a future date and pay periodic interests.
 Mortgage Payable - long-term obligation to a bank or other financial institution, secured
by real properties of the business
Equity (or capital) refers to the residual interest of the owners in the assets of a company after all
liabilities are settled.
Revenues (or income) refer to economic benefits received from business activities.
Service Revenue - revenue earned from rendering services. Other account titles may be used
depending on the industry of the business, such as Professional Fees for professional practice
and Tuition Fees for schools.
Rent Income - earned from leasing out commercial spaces such as office space, stalls, booths,
apartments, condominiums, etc.
Interest Income - revenue earned from lending money
Commission Income - earned by brokers and sales agents
Royalty Income - earned by the owner of a property, patent, or copyrighted work for allowing
others to use such in generating revenue
Franchise Fee - earned by a franchisor in a franchise agreement
Expenses refer to costs incurred in conducting business.
Advertising Expense - costs of promoting the business such as those incurred in newspaper
publications, television and radio broadcasts, billboards, flyers, etc.
Delivery Expense - represents cost of gas, oil, courier fees, and other costs incurred by the
business in transporting the goods sold to the customers.
Depreciation Expense - refers to the portion of the cost of fixed assets (property, plant, and
equipment) used for the operations of the period reported
Insurance Expense - insurance premiums paid or payable to an insurance company who accepts to
guarantee the business against losses from a specified event
Interest Expense - cost of borrowing money
Rent Expense - cost paid or to be paid to a lessor for the right to use a commercial property such
as an office space, a storeroom, a building, etc.
Repairs and Maintenance - cost of repairing and servicing certain assets such as building facilities,
machinery, and equipment
Salaries Expense - compensation to employees for their services to the company
Supplies Expense - cost of supplies (ball pens, ink, paper, spare parts, etc.) used by the business.
Specific accounts may be in place such as Office Supplies Expense, Store Supplies Expense,
and Service Supplies Expense.
License Fees and Taxes - business taxes, registration, and licensing fees paid to the government
Telecommunications Expense - cost of using communication and telephony technologies such as
mobile phones, land lines, and internet
Utilities Expense - water and electricity costs paid or payable to utility companies
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How Much Have You Learned ?
Self-check 1.1
Let us find out what you already know. Read and understand the questions below and
then write the letter of the correct answer on your answer sheet.
1. It is known as the language of business.

a. Accounting c. Transaction
b. Bookkeeping d. Posting
2. It refers to recording business and event in a systematic and chronological manner.
a. Bookkeeping c. Transaction
b. Accounting d. Liability
3. It is written on the left side of an account journal
a. debit c. profit
b. credit d. sales
4. It refers to the financial position of the business that shows the assets, liabilities, and owners‟
equity.
a. financial statement c. income statement
b. balance sheet d. cash flow
5. It is a report that summarizes the revenue items, expenses and profit/loss for the period.
a. expense c. income statement
b. deprecation d. balance sheet
6. It refers to the things of value owned by a business.
a. capital c. cash
b. inventory d. asset
7. It is the amount of merchandise sold and valued at selling price.
a. sales c. purchase
b. receivables d. proprietorship
8. It refers to the amount to be collected or received from a debtor in the future or at a later date.
a. receivables c. gross profit
b. net profit d. expenses
9. It consists of cash and other assets that in the normal operations are expected to be converted
into cash.
a. fixed assets c. other assets
b. current assets d. all of the above
10. It is the expense balance computed from the analysis of cash payment and comparative
balance sheet data.
a. Depreciation c. Revenue items
b. Expenses items d. All of the above
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LET US APPLY WHAT YOU HAVE LEARNED
Name: _______________________ Grade & Section:_____________
ACTIVITY 1.1.1 ASSETS
Classify the following Account titles according to CURRENT OR NON-CURRENT ASSETS

1. Cash
2. Prepaid Insurance
3. Prepaid Rent
4. Accounts Receivable
5. Notes Receivable
6. Goodwill.
7. Cash on Hand
8. Cash in Bank
9. Land
10. Interest Receivable
11. Machinery
12. Franchise
13. Office Equipment
14. Office Supplies
15. Delivery Equipment
16. Furniture and Fixtures
17. Inventories
18. Allowance for Bad Debts
19. Copyright
20. Trademark
21. Equipment
22. Lease Rights
23. Building
24. Accumulated Depreciation
25. Prepaid expense
23
Name: _______________________ Grade & Section:_____________
ACTIVITY 1.1.2 LIABILITIES

Classify the following liabilities into current and long-term.
1. Accounts Payable
2. Notes Payable
3. Interest Payable
4. Bonds Payable
5. Notes Payable due in three years
6. Mortgage Payable
7. Withholding Taxes Payable
8. Salaries Payable
9. Taxes and licenses Payable
10. Utilities Payable
ACTIVITY 1.1.3 REVENUE AND EXPENSES
Choose the letter of the correct answer. Write the letter on the space provided before
the number.
a. Expenses f. Advertising Expense

b. Repairs and Maintenance Expense g. Revenue
c. Supplies Expense h. Commission Income
d. Taxes and Licenses Expense i. Interest Income
e. Rent Income j. Utilities Expense
______1.It refers to economic benefits received from business activities.

______2. It refer to costs incurred in conducting business.
______3. Earned by brokers and sales agents.
______4. Revenue earned from lending money.
______5. Earned from leasing out commercial spaces such as office space, stalls, booths,
apartments, condominiums, etc.
______6. Costs of promoting the business such as those incurred in newspaper publications,
television and radio broadcasts, billboards, flyers, etc.
______7. Cost of supplies (ball pens, ink, paper, spare parts, etc.) used by the business.
______8. Water and electricity costs paid or payable to utility companies.
______9. Business taxes, registration, and licensing fees paid to the government
______10. Cost of repairing and servicing certain assets such as building facilities, machinery, and
equipment
24
Reasons for keeping records

Keeping accurate and up-to-date records is vital to the success of any business. The
business must realize that records kept will be one of the most important management tools it
possesses and, therefore, it should be allocated due importance. Many business owners invest a
lot of time and effort into the running of their business and yet fail to realise the importance of
maintaining good documentation. The business owner is looking for the maximum return from
their investment and the maintaining of good records is part of that equation.
For the business to achieve its success and profit, it is necessary for the scores to be kept,
as it were. Keeping records is really like score keeping - if you went to a basketball game where no
one kept the score, you would have to ask “What was the point of that whole exercise?” By
keeping the score you are able to work out who is winning and whether you are winning at all.
Many people do not know the "current score" of their own business because they have failed to
realize the importance of keeping good and adequate records.
Any record keeping system should be accurate, reliable, easy to follow, consistent as to the
basis used and be very simple. Good record keeping is vital in regards to meeting the financial
commitments of the business and providing information on which decisions for the future of the
business can be based. While the business maintains records to monitor and record its normal
business activities, it is also necessary because of obligations under the taxation laws.
Accounting and Bookkeeping
Accounting is the language of business. It is the art of recording, classifying, summarizing in a

significant manner and in terms of money, those transactions and events which are part, at least
of a financial character and interpreted as the results thereof.
Bookkeeping is the act of recording business and events in systematic and chronological
manner. The person involved in this task is the bookkeeper. His main job is to record and process
data in the accounting system.
In simple bookkeeping in a small business, there are processes that we need to follow to
ensure proper record keeping and reporting. These are the following:
1. Journalize transaction
2. Post transactions (ledger)
3. prepare trial balance
4. prepare basic financial statements (income statement, statement of changes in owners’
equity, balance sheet)
25
A List of Account Titles in Accounting
A list of account titles to be used in the recording is called Chart of Accounts. Each account
will be assigned a name or a title as well as code number for easy reference. The accounts are
normally listed in the order in which they appear in the financial statements. The balance sheet
accounts first, in the order of assets, liabilities, and owner’s equity. The income statement accounts
are then listed in the order of revenues and expense.
Sample Chart of Accounts
CHARTS OF ACCOUNTS
100 – Assets
101 – Cash
102 – Accounts receivable
103 – Note receivable
104 – Tools
105 – Furniture & Fixtures
106 – Office Equipment
107 – Repair Equipment
200 – Liabilities
201 – Accounts Payable
202 – Note Payable
203 – Loan Payable
204 – Mortgage Payable
300 – Owner’s Equity

301 – Nelson Santos Capital
302 – Nelson Santos Drawing
400 – Revenue
401 – Repair Income
402 – Rental Income
500 – Expenses
501 – Office Supplies Expense
502 – Rent Expense
503 – Salaries Expense
504 – Insurance Expense
505 - Advertising Expense
506 – Light & Water Expense
507 – Miscellaneous Expense
26
INFORMATION SHEET
ACTIVITY 1.2.1 Chart of Accounts

Prepare Chart of Account. Classify the following accounts according to 100-ASSETS, 200-
LIABILITIES, 300-CAPITAL, 400-REVENUE, 500-EXPENSE.
Parts of an Account
In bookkeeping, an account refers to assets, liabilities, income, expenses, and equity, as
represented by individual ledger pages, to which changes in value are chronologically recorded
with debit and credit entries. These entries, referred to as postings, become part of a book of final
entry or ledger.
27
Rules of Debit and Credit
Debit and Credit are two actions of opposing nature that are relevant to the process of
accounting.
Debiting an account and crediting an account are the two actions that are the result of an
accounting transaction. We either debit an account or credit an account in relation to an
accounting transaction but not both.
They are as fundamental to accounting as addition (+) and subtraction (−) are to mathematics.
Trying to apply this mathematical analogy in all cases would give a distorted meaning. It would not
be appropriate to consider debit to be an equivalent of addition and credit to be an equivalent of
subtraction or vice versa.
We just need to understand that debit and credit are two actions that are opposite in nature.
An element (account head) that is effected by an accounting transaction is either debited or

credited, with an amount that is reflected in the transaction, depending on the nature of the
account and the rule applicable to it.
Journalizing Transactions
Journalizing in accounting is the system by which all business transactions are recorded for
your financial records. A business transaction is first recorded in a journal, also called a Book of
Original Entry. Your journal keeps a record of all your business transactions, tracking them in
chronological order, as they happen.
Journalizing transactions is the process of keeping a record of all your business transactions,
tracking them in chronological order, and generally includes the date, the account you’re debiting
or crediting and a brief description of the transaction that occurred.
Journalizing transactions is the crucial first step in the accounting cycle. Journal entries serve
28
as the building blocks for your financial records, so it’s important to stay on top of them. All your
business transactions, including payments from clients and purchases you make for your business,
are journalized.
In Journalizing transaction, we need to follow this simple steps in analysing transactions:
1. Analyze transaction carefully.
2. Identify the accounts affected, then classify the accounts ( example

Accounts affected classification:
Cash assets
Accounts payable liability
3. Aalyze the effects on the accounts ( increased or decreased)
4. Apply the rules of debit and credit.
Let us try analyzing the following transactions. Let us use the table below.
Selected transaction for Lisa Tolentino , an architect, in her first month of business operations
are as follows:
1. L. Totentino invested cash to start the business P 50,000.
2. Paid cash for the purchase of computer P22,000.
3. Purchased office supplies on account P5,000.
4. Received cash for services rendered 10,000.
5. Billed customers for services rendered P8,000.
ACCOUNT INCREASED
DEBIT OR
ACCOUNT AFFECTED CLASSIFICATIO OR
CREDIT
N DECREASED
1 Cash Asset Increased Debit
L.Tolentino Owners Equity Increased Credit
3 Computer Asset Increased Debit
Cash Asset decreased Credit
3 Office Supplies Asset Increased Debit
Accounts Payable Liabilities increased Credit
4 Cash Asset Increased Debit
Service Revenue Revenue increased Credit
5 Accounts Receivable Asset Increased Debit
Service Income Revenue increased Credit
Parts of Journal
1. Date column – current year is used

29
2. Particulars/items/explanation column - it is the place where the debit and credit accounts
are written
3. PR Post Reference or folio the column where the ledger account is posted once the entries
are transferred to the ledger. It is a cross reference to the general ledger.
4. Debit column – the debit amount is extended in this column after writing the debit entry
5. Credit column – the credit amount is extended in this column after writing the credit entry
6. Explanation (optional)– a brief description is written about the entries written under the
Item/Particular/Explanation Column.
This is an example of journal.
GENERAL JOURNAL
30
Page 1
DATE ACCOUNT TITLE/PARTICULARS PR DEBIT CREDIT
JOURNAL ENTRIES
Recording Transactions in the General Journal

Each transaction is first recorded in the journal. The January transactions of Big Dog Carworks
Corp. are recorded in its journal as shown in Figure 1. The journalizing procedure follows these
steps (refer to Figure 1 for corresponding numbers):
1. The year is recorded at the top and the month is entered on the first line of page 1. This
information is repeated only on each new journal page used to record transactions.
2. The date of the first transaction is entered in the second column, on the first line. The day
of each transaction is always recorded in this second column.
3. The name of the account to be debited is entered in the description column on the first
line. By convention, accounts to be debited are usually recorded before accounts to be
credited. The column titled Folio indicates the number given to the account in the General
31
Ledger. For example, the account number for Cash is 101. The amount of the debit is
recorded in the debit column.
4. The name of the account to be credited is on the second line of the description column and
is indented about one centimetre into the column. Accounts to be credited are always
indented in this way in the journal. The amount of the credit is recorded in the credit
column.
5. An explanation of the transaction is entered in the description column on the next line. It is
not indented.
6. A line is usually skipped after each journal entry to separate individual journal entries and
the date of the next entry recorded. It is unnecessary to repeat the month if it is
unchanged from that recorded at the top of the page.
Figure 1.
How Much Have You Learned ?
SELF-CHECK 1.3.1
32
DIRECTION: Multiple Choice: Select the letter of the best answer. Write it on your answer sheet.
1. What side of an account refers to the increase side of any asset account?
a. debit b. credit c. both a & b
2. What is the decrease side of any liability account?
3. Which of the following refers to the book of original entry?
a. ledger b. journal c. worksheet
4. What is the normal side of the liability account?
5. Which of the following is called the book of final entry?
a. journal b. ledger c. worksheet
6. In which of the following part of the journal or ledger book is the current date reflected?
a. debit column b. credit column c. any side
7. Which part of the journal and the ledger book is used for referencing?
a. date column b. folio column c. item column
8. What is the normal side of an expense account?
a. debit b. credit c. any side
9. When an asset account decreases, in what side of the account will it be recorded?
10. What do you call the process of writing or recording business transactions?
a. posting b. journalizing c. analysis
SELF-CHECK 1.3.2
Direction: Identify the parts of journal
33
Name: _______________________ Grade & Section:___________
ACTIVITY 1.3.1 Analyzing Transactions

Direction: Analyze the following transaction by filling up the table below.
1. Paid rent.
2. Received cash from customer on account.
3. Paid creditor on account.
4. Paid utility bills.
5. Withdrew cash for personal use.
ACCOUNT
ACCOUNT INCREASED OR DEBIT OR
CLASSIFICATIO
AFFECTED DECREASED CREDIT
N
34
Name: _______________________ Grade & Section:__________
ACTIVITY 1.3.2 Journalizing transactions
Direction: Journalize the following transactions for Kuh Lang Beauty Parlor for the year 2019.
Record it to the General Journal.
On December 1, 2019 Kuh Lang opened a beauty parlor. Summary transactions are shown
below:
Dec 1- She invested P50,000 cash to start the business.
2- Purchased for cash shop supplies costing P 3,500
3- Bought from A&G Company equipment costing P 20,000 0n credit.
4- Customers paid P 12,000 cash sor services rendered.
15 - Made a partia payment to A&G Company P15,000.
16 - Customers were billed on account P 14,000 for service rendered.
17 - Rental for the month of December was paid, P 6,000.
18 - Collected P 8,000 for customers as pyment of their accounts.
19 - Paid wages of assistant helper, P 4,000.
20 - Bought additional shop supplies costing P 7,500. A downpayment of P3,000 was
made and the balance is payabe at the end of the month.
21 - Service rendered P 9,000. Receivee P4,500 as partial payment.
31 - The owner withdrew P 10,000 for his personal use.
GENERAL JOURNAL Page 1
35
DATE ACCOUNT TITLE/PARTICULARS PR DEBIT CREDIT
36
REFERENCES
RESOURCES
- learning guide -
REFERENCES
CBLM Entrepreneurship
Robinson Pe Chu, Ferdinand T. Gutierrez, 2000 Edition

Fundamentals of Accounting Part 1, Principles and Application
Zenaida Vera Cruz Manuel, BBA, CPA, The Accounting
Process Basic Concept And Procedures Third Edition
www.accountingcoach.com
www.jpec.org
http://www.opentextbooks.org.hk/ditatopic/22974
https://www.futureaccountant.com/accounting-process/study-notes/
accounting-principles-rules-of-debit-credit.php#.XuBXK7zivIU
https://www.toppr.com/guides/principles-and-practices-of-accounting/accounting-
terminology/accounting-terminology-glossary/
https://www.bing.com/images/search?
view=detailV2&ccid=1GfuM1c2&id=E53142BCC5069B713ADD251C2FCAF83AFFBE7ED9
&thid=OIP.1GfuM1c28FkZJZ2ScLG2mwHaFb&mediaurl=https%3a%2f
%2fseofiles.s3.amazonaws.com%2fseo%2fmedia%2fimages%2fsolution
%2fFinancial_Reporting_Assignment_Solution.jpg&exph=646&expw=880&q=Financial+
Statement+Report&simid=608022856116340435&ck=0819A6750F765CAA90C7BCA212
04587E&selectedIndex=20&ajaxhist=0
Congratulations! You did a great job!

Rest and relax a while then move on
to the next lesson. Good luck!
37

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SPTVE

Lesson 1 Perform Actual Selling of Products/Services Week 1-2

1.) Perform actual selling of products or services

These 2 common competencies are covered separately in 2 Lessons. As shown below,

Lesson 1 – Perform actual selling of products or services

Lesson 2 – Prepares and maintains financial records and reports

Perform actual selling of products

LO 1. Actual selling of products or services

Selling - the exchange of a particular products/services for a certain amount of money. It is

A. Conduct actual selling of products or services based on the business plan.

What Do You Already Know?

Persuasive Selling Selling

Sales Strategies Direct Selling

Sales Tactics Cold calling

______________1. face-to-face presentation, demonstration and sale of products or services,

______________ 4. is the planning of sales activities including methods of reaching clients,

_______________5. the exchange of a particular products/services for a certain amount of

______________ 6. The process of approaching prospective customers or clients who

ACTUAL SELLING OF GOODS OR SERVICES

Competitive Advantages of Strategic Sales Planning

 Increased closing ratio by knowing client’s hot buttons

Information Sheet 1.1a

KINDS OF SELLING STRATEGIES

NEEDS-BASED SELLING PROCESS

Questions used in qualifying a prospects;

 Does the person need the products or service that I am offering?

Another way to gain success in selling is through the following steps:

Build Long-Term Relationship

In these steps, the different activities should be followed:

1. A face-to-face presentation, demonstration and sale of products or services, usually at the

Name: Grade & Section_______________________

relatives church mates schoolmates

Performance Sheet 1.1

REFLECTION CHART OF THE WOULD-BE ENTREPRENEUR

( ) I do not want to continue as an entrepreneur because

Resources depend upon the project plan made by students based

Almonte, Crispina B. et.al. Learning from small business. Anvil

Congratulations! You did a great

Accounting – It is a systematic process of identifying, recording, measuring, classifying, verifying,

Bookkeeping - Bookkeeping involves the recording, on a daily basis, of a company’s financial

A. Identify the different accounting terminologies

What Do You Need To Know?

Information Sheet 1.1

Accounting is a very necessary subject in the field of commerce. It is very hard to

Liabilities - A liability is technically defined as a "present obligation of an enterprise arising from

1. It is known as the language of business.

Name: _______________________ Grade & Section:_____________

ACTIVITY 1.1.1 ASSETS

Classify the following Account titles according to CURRENT OR NON-CURRENT ASSETS

LET US APPLY WHAT YOU HAVE LEARNED

ACTIVITY 1.1.2 LIABILITIES

ACTIVITY 1.1.3 REVENUE AND EXPENSES

a. Expenses f. Advertising Expense

______1.It refers to economic benefits received from business activities.

Information Sheet 1.2

Reasons for keeping records

Accounting and Bookkeeping

Accounting is the language of business. It is the art of recording, classifying, summarizing in a

Sample Chart of Accounts

Name: ___________ Grade & Section:_