Lesson Plan

Bookkeeping
Prepared by: Maribel B. Encabo

I. Objectives

1. Define the terms used in accounting equation.

2. Analyze simple accounting transactions.
3. Perform simple computation using accounting equation.
4. Appreciate the help of accounting equation in every accounting transaction.

II. Subject Matter: Accounting Equation

Reference: Accounting Principles I

by: Arganda, Cardenas-Atis, Del Rosario pages 5-7 and 21-23

Materials: Power Point presentation

Value Focus: Correct usage of Accounting Equation.

III. Procedure

Teacher’s Activity Students’ Activity

A. Preparation

Good morning class! Good morning ma’am!

Let us pray first …. (one student will lead the prayer)

( Checking of attendance) (class secretary takes note of the absences)

1. Review

Class I would like to know how familiar (Students share what they know about
you are with the word “accounting”. accounting one at a time)

What do you know about accounting?

Very good!

2. Motivation

Now we are going to have a short A seesaw…

activity. First, what image are you seeing?

Share any ideas or experiences you have

based on the image shown.

(Randomly, students will share their ideas in

class)

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3. Presentation

What about this, please tell me We see assets, liabilities and equity
the words that you can see in the
image.

What do you know about these

words: asset, liabilities, equity?

Great!

It’s good to hear that you already

have ideas about these words.

We will learn more of them as we

go along but today, we are going to
study what these words are, and how
they affect the accounting process.

B. Lesson Proper

1. Activity

A. (Students will be grouped into two. Each 1. Assets are an economic resources owned
group is to match the words to its by the business. Like: Cash, Accounts
corresponding definition and present them in receivable, Supplies, Equipment or
front) Furniture.
2. Liabilities are debts or obligations of the
business to a party other than its owner.
This is called the Accounts payable.
3. Capital represents the owner’s equity or
investment in the business.
4. Equation comes from the word equal. It is a
state of being essentially equal or equivalent.
5. Accounting Equation - is the basis upon
which the double entry accounting system is
constructed. It is: Asset = Liabilities + Capital.

B. Accounting Equation

Asset = Liabilities + Capital

With the said accounting equation, we are (Students will analyze the transaction and
going to have a short exercise by analyzing determine what accounts are affected)
and posting these transactions.

Sample transaction:

1. Mr. Makisig opened a cell phone repair Asset = Liabilities + Capital

shop business and invested ₱20,000.00
cash. 1 20,000.00 20,000.00
2. He purchased repair supplies worth 2 5,000.00 5,000.00
₱5,000.00 on credit from Kagandahan 3 (3,000.00)
Trading. 3,000.00
3. He bought a table and chair for the 4 (1,000.00) (1,000.00)
business, ₱3,000.00, cash. 5 (2,500.00) (2,500.00)
4. Mr. Makisig paid the salary of his
assistant, 21,500.00 2,500.00 19,000.00
₱1,000.00.
5. Mr. Makisig paid Kagandahan Trading,
₱2,500.00.

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2. Analysis / Discussion

Based on the activities that we just did, what The accounts involve are: Asset, Liabilities and
are the accounts involved in Accounting Capital.
Equation?

How do we know we are posting the By making sure accounting equation remains in
transaction correctly? balance.

That’s right!

3. Abstraction

So class, What helps us in posting business Accounting Equation.

transactions and makes sure that accounts
are always in balance?

And what does Accounting Equation do? Accounting Equation serves as guide in every
accounting transaction.
Correct!

4. Application

Now, I have here 3 transactions and I need (Each group will have one representative for
one representative from each group to post every transaction)
these transactions on the table provided.
Make sure the equation remains in balance
every after transaction. Asset = Liabilities + Capital
1 50,000.00 50,000.00
1. Mr. Pogi opened a business named Kits new
and Pups Grooming and invested bal 50,000.00 50,000.00
₱50,000.00 cash. 2 5,000.00 5,000.00
new
2. He purchased grooming equipment worth bal 55,000.00 5,000.00 50,000.00
₱5,000.00 in credit. 3 (1,000.00) (1,000.00)
new
3. Mr. Pogi withdrew cash from his capital bal 54,000.00 5,000.00 49,000.00
₱1,000.00 for his personal use.

Very good class!

IV. Evaluation

Analyze the following transactions and compute for the balance in every transaction
using the accounting equation. Enclose in parenthesis the deductions. Write your answers in a
½ sheet of paper.

Transactions:
1. Ms. Rosas opened a flower shop business and invested ₱30,000.00 cash.
2. She purchased supplies for her store worth ₱10,000.00 in credit from Floral
Enterprise.
3. Paid monthly rental of the shop space for ₱2,500.00.
4. Paid Floral Enterprise ₱5,000.00.
5. Ms. Rosas added ₱10,000.00 cash to her investment.

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V. Assignment

Study T-Accounts on pages 35-38 of your Accounting Principles I book. In a ½ sheet of

paper define the following:
1. Account
2. T-Account
3. To debit
4. To credit
5. Debit
6. Credit

—the end—

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Greetings…
Prayer….
Attendance…

Review
Class I would like to know how familiar you are with the word “accounting”.
What do you know about accounting?

Motivation
Now we are going to have a short activity. First, what image are you seeing?
Share any ideas or experiences you have based on the image shown.

Presentation
What about this, please tell me the words that you can see in the image?

What do you know about these words: asset, liabilities, equity?

It’s good to hear that you already have ideas about these words.

We will learn more of them as we go along but today, we are going to study what these
words are, and how they affect the accounting process.

Lesson Proper
Activity
1. (Students will be grouped into two. Each group is to match the words to its
corresponding definition and present them in front)
2. Accounting Equation….
Analysis
Based on the activities that we just did, what are the accounts involved in
Accounting Equation?

How do we know we are posting the transaction correctly?

Abstraction

So class, What helps us in posting business transactions and makes sure that
accounts are always in balance?

And what does Accounting Equation do?

Application
Now, I have here 3 transactions…..do it yourself activity

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Accounting as a whole is based on single equation.

Steps:

1. Identified the accounts affected.

2. Determined the amount of the increase or decrease for each account.

3. Made sure the accounting equation remains in balance.