Adacuna DLP Fabm1 Wk3 July 6, 2017 Accounting Principles
Adacuna DLP Fabm1 Wk3 July 6, 2017 Accounting Principles
Adacuna DLP Fabm1 Wk3 July 6, 2017 Accounting Principles
The learners
I. Content Standard accounting concepts and principles
V. LEARNING RESOURCES
A. References DepEd
Grade 12- FABM Teacher’s Guide
Curriculum Guide
A. ACTIVITY 15
Emphasize that:
The activity is an application of the Business Entity Principle
which is one of the most important principles in accounting
B. ABSTRACTION (40)
Give a lecture. The following principles should be discussed. After
each principle, give a practical example. Suggested examples are
given below.
• Business entity principle – a business enterprise is separate and
distinct from its owner or investor.
Examples : o If the owner has a barber shop, the cash of the barber
shop should be reported separately from personal cash. o The owner
had a business meeting with a prospective client. The expenses that
come with that meeting should be part of the company’s expenses. If
the owner paid for gas for his personal use, it should not be included
as part of the company’s expenses.
• Going concern principle – business is expected to continue
indefinitely. Example: When preparing financial statements, you
should assume that the entity will continue indefinitely.
• Time period principle – financial statements are to be divided into
specific time intervals. Example : o Philippine companies are
required to report financial statements annually. o The salary
expenses from January to December 2015 should only be reported in
2015.
• Monetary unit principle – amounts are stated into a single
monetary unit Example : o Jollibee should report financial
statements in pesos even if they have a store in the United States. o
IHOP should report financial statements in dollars even if they have a
branch here in the Philippines
• Objectivity principle – financial statements must be presented with
supporting evidence.
Example : o When the customer paid Jollibee for their order, Jollibee
should have a copy of the receipt to represent as evidence.
o When a company incurred a transportation expense, a voucher should
be prepared as evidence.
• Cost principle – accounts should be recorded initially at cost.
Example : o When Jollibee buys a cash register, it should record the
cash register at its price when they bought it. o When a company
purchases a laptop, it should be recorded at the price it was purchased.
VIII. ASSESSMENT 3. No financial statements were prepared by Mrs. Balani for his
business. He explained that he will prepare the statements when he
closes the business, which he predicts to take place after 20 years.
4. Aside from owning a shoe store, Mr. Alcazar operates a canteen. The
assets of the canteen are reported in the statement of financial position
of the shoe store.
IX. AGREEMENT / Interview the owner by asking the following questions. Pick someone from the
ASSIGNMENT class to discuss his findings.
X. REMARKS
A. No. of learners who
earned 80% on the
formative assessment
No. of learners who require
additional activities for
remediation
B. Did the remedial lessons
work? No. of learners who
have caught up with the
lesson
C. No. of learners who
continue to require
remediation
D. Which of my teaching
strategies worked well?
Why did these work?
E. What difficulties did I
encounter which my
principal or supervisor can
help me solve?
F. What innovation or
localized materials did I
use/discover which I wish
to share with other
teachers?
Prepared by:
Noted:
PERLITA A. VILLANUEVA
ALMA D. ACUNA Principal III
Teacher