SHS

Fundamentals of Accountancy,
Business and Management 1
Module 4
Fundamentals of Accountancy, Business and Management 1
Module 4
First Edition, 2021

Copyright © 2021
La Union Schools
Division Region I

All rights reserved. No part of this module may be reproduced in any form
without written permission from the copyright owners.

Development Team of the Module

Author: Rudyna M. Minasalvas, Teacher II

Editor: SDO La Union, Learning Resource Quality Assurance Team

Illustrator: Ernesto F. Ramos Jr.,P II

Management Team:

Atty. Donato D. Balderas, Jr.

Schools Division Superintendent

Vivian Luz S. Pagatpatan, Ph.D

Assistant Schools Division Superintendent

German E. Flora, Ph.D, CID Chief

Virgilio C. Boado, Ph.D, EPS in Charge of LRMS

Lorna O. Gaspar, EPS in Charge of FABM

Michael Jason D. Morales, PDO II

Claire P. Toluyen, Librarian II

 Target

In this chapter we will discuss the major accounts in accounting especially

in the preparation of financial statements. This learning material will provide you
information and activities that will help you understand the five major accounts in
accounting (assets, liabilities, equity, income and expense.) and on how to prepare
a chart of accounts.
After going through this module, you are expected to attain the following
objectives:
Learning Competencies:

• Discuss the five major accounts (ABM_FABM11_IIId-e-19)

• Prepare a chart of accounts (ABM_FABM11-IIId-e-21)

Subtasks:
1. Define the five major accounts and chart of accounts.
2. Classify the different account tittles according to major accounts.
3. Identify the components of chart of accounts.
4. Demonstrate the steps in preparing chart of accounts.

Jumpstart
Let us start your
journey in learning
PRE-TEST thru a Pre-Test

Activity1: IDENTIFICATION
Direction: The account titles inside the box are the ones described in the
sentences below. Match each account title with the correct sentence. Write
your answer in your answer sheet.

Accounts Receivable Assets Cash Equivalent Equipment

Liabilities Land Revenues Notes Receivable Cash Inventories

____________1. These are resources controlled by the business as a result of

past transactions and events and from which future economic benefits are
expected to flow the business.

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____________2. These are the present obligations of an entity arising from past
transactions or events, the settlement of which is expected to result in an
outflow from the business of resources embodying economic benefits.
____________3. These are earnings arising from the main line operations of the
business. Such as rendering of services or selling of goods.
____________4. This represents the amount of money owed by the customer or
debtor to the business evidenced by a promissory note.
____________5. This represents manual or automated machines used in the
business, like computers, laptops, ring binders, and delivery vehicles.

Activity 2: TRUE OR FALSE

Directions: Before each statement, write TRUE if the statement is CORRECT
and FALSE if the statement is INCORRECT. Write your answer in a separate
sheet of paper.

_________1. Account tittles in the chart of accounts are usually grouped

according to major accounts.
_________2. Account tittles in the chart of accounts are usually arranged
chronologically.
_________3. Accounts receivable is a receivable supported by oral or informal
promises to pay.
_________4. Current assets are always reasonably expected to be realized in cash
or consumed in the business within 12 months from the reporting
date.
_________5. If an account cannot be classified as current, it is always classified as
non-current.
_________6. All withdrawals made by the owner are in the form of cash.
_________7. Coding in the chart of account is helpful in locating specific accounts
when it is posted to the ledger.
_________8. The basic accounting equation has two sides, the left side, which is
credit, and the right side, which is debit.
_________9. All businesses have a chart of accounts.
________10. A chart of account is a list of expenses account used by companies in
their financial records.

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 Discover

The accounting equation “total assets equals total liabilities plus

owner’s equity” perfectly captures the major accounts. These are the
statement of Financial Position Accounts further the statement of
comprehensive income has two major accounts the income and the expense.

An account is the basic storage of information in accounting. It is a record of

the increase and decrease in a specific item of assets, liability, equity, income
or expense.

To fully understand how to post transactions and read financial reports, we must
understand these account types.

THE FIVE MAJOR ACCOUNTS

1. Assets – is a resource controlled by the entity as a result of past events and

from which future economic benefits are expected to flow to the entity.
2. Liabilities - defined as obligations that your company needs to fulfill to
other companies.

3. Owner’s Equity - are the owner’s claims in the business. It is the residual
interest in the assets of the enterprise after deducting all its liabilities. It can be
derived by deducting liabilities from assets.

4. Income – The money received by individual or business, usually in exchange

for providing a goods and services or through investing capital. It increases
owner’s equity.

5. Expenses - It is the cost of operations that the company incurs to generate

revenue. As the popular saying “It cost money to make money”. (Daniel Liberto,
2017).

CLASSIFICATION OF ASSETS

Assets are classified based on their convertibility into cash.

1. Current Assets - An entity shall classify an asset as current when:
a) it expects to realize the asset, or intends to sell or consume it, in the
entity’s normal operating cycle;
b) it holds the asset primarily for the purpose of trading;
c) it expects to realize the asset within twelve months after the reporting
date; or
d) the asset is cash or a cash equivalent, unless it is restricted from
being exchanged or used to settle a liability for at least twelve months
after the reporting date.”

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Current assets are usually presented first on company’s balance sheet and
they are arranged in their order of liquidity. Liquidity means the speed at
which the assets should be turning to cash; or the assets nearness to cash.

Accounts under Current Asset

 Cash – is money on hand, or in banks, and other items considered as

medium of exchange in business transactions.
 Accounts Receivable are oral promises to entity to receive cash at a later
date. Usually arise from the normal course of business such as selling of
goods or delivering services.
 Notes Receivable are amounts due from clients supported by promissory
notes.
 Inventories are assets held for resale.
 Supplies are items purchased by an enterprise which are unused as of the
reporting date.
 Prepaid Expenses are expenses paid in advance. They are assets at the
time of payment and become expenses through the passage of time.
 Accrued Income is revenue earned but not yet collected.
 Short term investments are the investments made by the company that
are intended to be sold immediately in less than a year.

2. Non- Current Assets are assets that cannot be easily and readily converted
into cash and cash equivalents. Non-current assets are also termed fixed
assets, long-term assets, or hard assets.
Accounts under Non-current Assets
 Property, Plant and Equipment are long- lived assets which have been
acquired for use in operations. This are tangible assets, meaning they are
physical in nature or can be touched. (examples: Building, Table & chairs,
sofa, printers, laptop, filing cabinet, etc.)
 Long Term Investment - other investment made by the firm that will
benefit company for several years. Example: Investment in Equity
Securities
 Intangible assets – these are assets that are identifiable, non- monetary
assets without physical substance. Example: Trademark, Goodwill, Patents,
Copyright.
* Trademark. A trademark is a unique symbol or words used to
represent a business or its products.
* Goodwill (pakikisama or suki in tagalog) - The value of a company’s brand
name, solid customer base, good customer relations, good employee, relations,
and proprietary technology represent some reasons why good will exists.
(Marshall Hargrave & Amy Drury)

* Patents- It is an exclusive right granted for invention.

*Copyright - This is an intellectual property laws that protects original works of
authorship including literary, dramatic, musical, and artistic works, such as
poetry, novels, movies, songs, computer software, and architecture.

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CLASSIFICATION OF LIABILITIES

Current Liabilities
Liabilities that falls due within one year (12 months) after the reporting date
of Financial Statement. Examples: Accounts Payable, Utilities Payable and
Unearned Income.
Non- Current Liabilities
Liabilities that do not fall due within one year-end date. Those accounts that
is due after 12 months are considered as non-current liabilities. Examples:
Notes Payable, Loan payable, mortgage payable.

ACCOUNTS UNDER CURRENT LIABILITIES

Current Liabilities
 Accounts Payable are amounts due, or payable to, suppliers for goods
purchased on account or for services received on account.
 Notes Payable are amounts due to third parties supported by promissory
notes. Accrued Expenses are expenses that are incurred but not yet paid
(examples:
salaries payable, taxes payable)
 Accrued Expenses are expenses that are incurred but not yet paid (examples:
salaries payable, taxes payable)
 Unearned Income is cash collected in advance; the liability is the services to
be performed or goods to be delivered in the future.

Non- Current Liabilities

 Notes Payable – these represents the amount of money borrowed by the

business to the supplier or banks evidenced by a promissory note.
 Mortgage Payable –this represents the amount of money barrowed by the
business from a bank or a lending institution which is secured by collateral.
( Rabo, Tugaz, Salendrez 2016)

EQUITY/ OWNER’S EQUITY

This is the portion of the total assets that the business owner fully
owns. Equity may be in assets such as buildings, equipment, or in cash.
Equity also referred to as Net worth.

Accounts under Equity/Owner’s Equity

 Capital - is the value of cash and other assets invested in the business by the
owner of the business.
 Drawing is an account debited for assets withdrawn by the owner for personal
use from the business.

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INCOME

Income increases economic benefits during accounting period in the form of

inflows of cash or other assets or decreases of liabilities that result in increase
in equity.
Income include revenue and
gains.

Account tittles under income

 Service Revenue – this refers to the earnings made by any business that
is into rendering services. The term “ revenue” is used not “ income” to
distinguish that such an earning arises from the main line of operations of
the business.

 Interest Income - this represents interest credited by the bank to the

account of the business arising from bank deposits.

✓ Note: The term “income” was used since earnings interest from bank
deposits is not the main line operation of the business.

 Sales – represents the earnings made by any business that is from selling
of goods or merchandise.
 Professional Fees – this represents earnings made by the professionals or
experts from rendering services to their clients. Like: Lawyer, Doctors,
Teacher, Certified Public Accountants, etc.

EXPENSE
Expenses are decreases in economic benefits during accounting period in the
form of outflows of assets or incidences of liabilities that result in decreases in
equity

Account title under expense

 Utilities Expense – refers to a cost associated with the usage of electricity,

water, and communication for a particular accounting period.
 Salaries Expense– refers to salaries incurred associated with the services
rendered by employees.
 Taxes, duties & licenses– the cost incurred in registering the business to
acquire the right to operate and to settle taxes. Ex. Business Permit, BIR
 Supplies Expense refers to office supplies that was used during accounting
period. Ex. Bond Paper, Ballpen, Folder, etc..
 Depreciation Expense - represent the monetary value of an asset decreases
over time due to use. Example building, vehicles
 Doubtful Accounts Expense – represents the uncollectible amount in account
receivable.
**not all receivables can be collected, company’s/ businesses set-up
contra asset account called Allowance for doubtful Accounts or bad debts

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 allowance that estimates how much of their current receivables are
uncollectible. **

Further, let us classify transactions into title accounts as discuss above:

1. A customer bought barbecue worth ₱500 from your barbecue business. He told
that he will be paying it next week.
2. Your electric bill for the month of January amounted to ₱2,000. The bill is not
yet paid.
3. You are renting a space for your barbecue stand. The rent is ₱5,000 per
month.
4. You sold barbecue worth ₱500.
5. You invested ₱ 1,500 to your barbecue business.

Answer:
1. Accounts receivable because the ₱500 is collectible from the customer and
recorded as account for Assets.
2. Utilities payable. The unpaid utility already used but not yet paid and
recorded as account for Liability.
3. Rent expense. At the end of the month, you will record ₱5,000 as rent
expense and classified as account for Expense.
4. Sales. The worth ₱500 is recorded as Sales and classified as account for
Income Statement.
5. Capital. Your ₱1,500 investment is recorded in the Owner’s capital and
classify on the account Owner’s Equity.

All transactions had classified as Assets, Liability, Equity, Income and

Expenses. It is advised to understand by heart the chart of accounts and its
classification of account title for your guide in classifying transactions into an
account.

CHART OF ACCOUNTS
What is a chart of accounts?

 A chart of accounts is a listing of the accounts used by companies in their

financial records.
 The chart of accounts helps to identify where the money is coming from
and where it is going.
 The chart of accounts is the foundation of the financial statements.

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Example of a chart of accounts
XYZ PHOTOCOPYING CENTER
Chart of Accounts
Account Assets Account Equity/Owner’s Equity
Code Code
110 Cash 310 ABM, Capital
111 Accounts Receivable 311 ABM, Drawing
112 Allowance for Doubtful Accounts 312 Income Summary
113 Notes Receivable
114 Interest Receivable
115 Unused Supplies Revenues
116 Prepaid Rent 410 Photocopying Revenue
117 Photocopying Equipment 411 Interest Income
118 Accumulated Depreciation- 412 Other Income
Photocopying Equipment
119 Furniture and Fixtures
120 Accumulated Depreciation
121 Other Assets
Liabilities Expenses
210 Accounts Payable Taxes and Licenses Expense
211 Notes Payable 510 Salaries Expense
212 Salaries Payable 511 Supplies Expense
213 Income Tax Payable 512 Utilities Expense
214 Interest Payable 513 Rent Expense
215 Unearned Photocopying Revenues. 514 Depreciation Expense
216 Mortgage Payable 515 Doubtful Accounts Expense
217 Loan Payable 516 Interest Expense
218 Other Liabilities 517 Other Expense

Preparation of Chart of Accounts

Each business shall formulate a chart of accounts that best suits its
needs. Large corporations may have thousands of accounts and have more
digits on their account numbers. Smaller companies may have lower accounts
increases, the digits in the account number of accounts.

It is prepared in a manner such that the five major accounts are

grouped and organized. At the earliest possible time business should
anticipate all specific accounts that can be used in its lifetime that will be
included in the list.

The specific accounts also be coded numerically to facilitate a more efficient

posting of the entries to the ledger.

Remember that account numbers are assigned to the accounts to

facilitate recording, cross referencing, and retrieval of information. Although
there is no standard way of assigning account numbers, account numbers
should be assigned in a manner that the accounts are categorized locally.

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Assigning Numbers in the Chart of Accounts

The first digit in the 3- digit numbering refers to the major types of accounts.

Major Accounts Assigned Numbers

Assets 1
Liabilities 2
Equity 3
Income 4
Expense 5

The first digit in the account number refers to which of the five major account
categories an individual account belongs to – “1” for asset accounts, “2” for
liability accounts, “ 3” for equity accounts, etc.

First digit shows the major classification of account.

2nd digit shows sub- classification of an account.
3rd digit identifies the specific account name.

Chart of Account is important because it is designed as a way to separate

expenditures, revenue, assets, and liabilities, so a business can have a clear
understanding and view of their overall financial health.

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 Explore

Activity 1: Guess Me!

Direction: Supply a needed information vertically and horizontally to come

Across

1. Expenses that is associated with the services rendered by the employees.

2. Refers to all items, goods, merchandise, and materials held by a business
for selling in the market to earn profit.
3. A company financial obligations to other entity.
4. The monetary payment received for goods or services, or from other
sources.
5 . This is a unique symbol or words used to represent a business or its product.

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 Down
6. An account represents the earnings made by any business from selling of
goods or merchandise.
7. It is an exclusive right granted for invention.
8. It is presented first on company’s balance sheet and they are arranged
according in their order of liquidity.
9. An oral promise to entity to receive cash at a later date.
10. Represents the portion of the total assets that the business owner fully
owns

Activity No. 2 Classify me!

Direction: Identify where you classify the following items. Use a separate sheet of
paper for your answers.
Account Title Current Non- Tangible Intangible
Current
1.Account Receivable ✓
2. Building ✓ ✓
3. Cash
4. Computer Equipment
5. Copyrights
6. Delivery Truck
7. Furniture & Fixtures
8. Supplies
9. Inventories
10. Land
11. Notes Receivable
12. Office Supplies
13. Accrued Income
14. Prepaid Insurance
15. Prepaid Rent

Activity No. 3
Direction:Identify the proper place in the chart of accounts of the following
transaction.
Assets Liability Equity Income Expense
1. Property, plant &
equipment /
2. Water Expense
3. Office Supplies
4. Prepaid Rent
5. Unearned Income

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 6. Taxes, duties and
licenses
7. Account
Receivable
8. Capital
9. Service Revenue
10. Accounts Payable

. Deepen
Activity
Determine what ACCOUNT TITLE and group according to MAJOR
ACCOUNT. Write your answer in a separate sheet of paper.
Account Title Major Account
_______________________1. He purchased table napkins worth ₱200 to be used in
your barbecue operations.
_______________________2. The customer with the ₱500 account receivable is broke
you have estimated that you can only collect ₱420 from him.
_______________________3. He hired a helper in a barbecue business. The employee
earns compensation of ₱8,000.
_______________________4. The cost of barbecue that was sold for ₱500 is ₱300.
_______________________5. He paid Justin Bieber ₱5,000, 000 to endorse the
product.
_______________________6. On your total account receivable of ₱500, you expect to
collect only about ₱480.
_______________________7. The barbeque grill was stolen.
_______________________8. He received an order of barbecue worth ₱800. The
customer paid the sale price but instructed you to deliver the barbecue next
week _______________________9. He made a temporary withdrawal of ₱200
from your barbecue business.
_______________________10. He expects to use the barbecue grill for 5 years.
Activity B
Indicate whether it is an increase (+), decrease (-), or (NE) no effect on the asset,
liabilities and equity accounts.
Assets Liabilities Equity
1. Investment of cash in the business ___________ _________ __________
2. Purchase of computer equipment for cash ___________ _________ __________
3. Billed a customer for services rendered ___________ _________ __________
4. Paid salaries ___________ _________ __________
5. Purchased office supplies on credit ____________ _________ __________

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6. Paid advertising expense ___________ _________ __________
7. Paid rent in advance for 3 months ___________ _________ __________
8. Received cash from customers on account ___________ _________ __________
9. Withdrew cash for personal use ____________ _________ __________
10. Invested land into the company ___________ _________ _________

Activity C: Chart of Accounts

If this is a company transaction of Company A. Prepare chart of accounts. Write

your answer on a separate sheet of paper.

Chart of Accounts
Codes Description
Cash
Prepaid Rent
Revenue
Delivery Vehicles
Accounts Payable
Equipment
Inventory
Interest Income
Advertising Expense
Accounts Receivable
Notes Payable
Accrued Expense
Office Supplies

Furniture
Loans Payable
Capital
Owner’s Withdrawal
Wage Expense
Electricity Expense
Rent Expense

Account Codes
Assets 100-199 Liabilities 200-299
Equity 300-399 Income 400-499
Expenses 500-559

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 Gauge

Multiple Choice: Read and analyze each item. Choose the best
answer. Write your answer on a separate sheet of paper.
1. What is the principal classification of liabilities?
A. Accrued Income and Prepaid Expense.
B. Current and Non-current Liabilities
C. Mortgage and Loans Payable
D. Current liabilities
2. What type of account is prepaid insurance?
A. Assets B. Expense C. Income D. Owner’s Equity
3. What type of account is accrued income?
A. Assets B. Expense C. Liabilities D. Owner’s Equity
4. Which of the following best describe PREPAID RENT?
A. It represents to the amount of money owed by the customers to the
business.
B. It refers to advanced payment made by the business to cover future rental
payments.
C. It is the physical structure owned and used by the business to conduct its
business operation.
D. It refers to the amount of money owed by the customer or debtor to the
business evidenced by a promissory note.
5. What account title represent the cost being incurred by the business in
generating revenues?
A. Assets B. Expenses C. Liabilities D. Revenues
6. What account title should be use if the business entity collects advance
payment for a service or goods that is yet to be rendered or delivered?
A. Accrued Income B. Accounts Payable
C. Prepaid Income D. Unearned Revenue
7. Which of the following is NOT a current asset among the following items?
A. Cash and cash equivalents
B. Inventory under production
C. Prepaid insurance to be used up this year.
D. A company’s office building bought this year.
8. Which of the following is NOT an asset account?
A. Accrued Income B. Account Receivable
C. Building D. Unearned Income

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9. Which of the following is a liability account?
A. Building B. Interest Income
C. Interest Payable D. Prepaid Rent
10. Which of the following does NOT belong to income account?
A. Accrued Income B. Interest Income
C. Sales Income D. Unearned Income
11. Fixed assets include all the following, EXCEPT:
A. Oil drill used by the company.
B. company’s highly productive factory building.
C. Office building used for administrative purposes.
D. Cows, chicken, and swine for sale at company’s farm.
12. Lowtech Mechanic Shop sells a bicycle to Martin, a customer who uses
Local Card ( a national credit card, but not issued by a bank). In recording
this sale, Lowtech Mechanics Shop should record___.
A. A receipt cash from Martin.
B. Account receivable from Martin.
C. Account Receivable from Local Card.
D. An acceptable increase in the allowance for doubtful accounts.
13. Unearned service revenue occurs when which of the following occur?
A. Receives cash from a customer after performing a service.
B. Pays cash after receiving a service from a customer.
C. Pays cash before receiving a service from a customer.
D. Receives cash from customer before performing a service.
14. Which of the following will cause owner’s equity to increase?
A. Revenues are less than assets.
B. Withdrawal made by the owner.
C. Revenues are more than expenses.
D. Purchase of additional assets from existing cash of the business.
15. Upon initial investment of cash by the owner, which major accounts will be
affected?
A. Assets Only B. Assets and liabilities
C. Asset’s and owner’s equity D. Only owner’s equity account

For numbers 16 – 20. Identify the statement if it is true or false. Choose

the letter that represents the correct combination of your answer.

_____16. Statement I – A chart of accounts is a listing of asset accounts used

by the companies in their financial records.
Statement II – Specific accounts tittles are coded numerically to
facilitate a more efficient posting of the entries to the ledger.
A. Both statements are true B. Only statement I is true
C. Only statement II is true D. Both statements are false

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_____17. Statement I – In chart of account the first number represents the sub-
classification of accounts.
Statement II – 2nd digit shows the major classification of account.
A. Both statements are true B. Only statement I is true
C. Only statement II is true D. Both statements are false

_____18. Statement I – A chart of account is a financial organizational tool

that does not provide a complete listing of every accounting system.
Statement II- Chart of account is designed as a way to separate
expenditures, income, assets and liabilities.
A. Both statements are true B. Only statement I is true
C. Only statement II is true D. Both statements are false
_____19. Statement 1 – Chart of Accounts arranged according to major accounts.
Statement II – There is a standard way in assigning account numbers in
the chart of accounts.
A. Both statements are true B. Only statement I is true
C. Only statement II is true D. Both statements are false
_____20. Statement I – Major accounts found in the chart of accounts.
Statement II- Chart of account provide a complete listing of all
accounts used by the business.
A. Both statements are true B. Only statement I is true
C. Only statement II is true D. Both statements are false

Are you good? If you have questions contact your teacher, but if you think you are
ready for the next lesson, move now to the next topic. Preparing a Chart of Accounts.

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 Key Answer

Explore:
Activity 1 Guess Me
PRETEST
1. Salaries
Activity 1 Activity Expense
2 2. Inventories
1. Assets 1. True 3. Liabilities
2. Liabilities 2. 4. Income
False
3. Revenues 3. True
5. Trademark
4. Notes Receivable 4. True 6. Sales
5. Equipment 5. True 7. Patents
6. False 8. Current Assets
7. True 9. Account
Receivable
8. False
10.Owner’s equity
9. False
10. False

EXPLORE: Activity 2. Classify me! (15pts)

Current Non- Tangible Intangible

Account Tittle Current
✓
1. Account Receivable
2. Building ✓
3. Cash ✓ ✓
4. Computer ✓ ✓
Equipment
5. Copyrights ✓ ✓

6. Delivery Truck ✓ ✓
7. Furniture & ✓ ✓
Fixture
8. Supplies ✓ ✓
9. Inventories ✓ ✓
10. Land ✓
11. Notes Receivable ✓ ✓

12. Office Supplies ✓ ✓

13. Accrued Income ✓

14. Prepaid Insurance ✓

15. Prepaid Rent ✓

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Deepen: Activity No. 3 Proper Place
Assets Liability Equity Income Expense
1. Property, plant &
equipment /
2. Water Expense /
3. Office Supplies /
4. Prepaid Rent /

5. Unearned Income
6. Taxes, duties and /
licenses
7. Account Receivable /
8. Capital /
9. Service Revenue /
10. Accounts Payable /

Gauge

1. B. 6. A 11. D 16. A

2. A 7.D 12. C 17. D

3. C
8.D 13. D 18. C
4. B
9.C 14. C 19. B
5. B
10.D 15. C 20. A

Deepen

Activity A Activity B

Account Tittle Major Assets Liabilities Owner’s

Accounts Equity
1 Supplies Assets 1 + NE +
2 Account Receivable Assets 2 NE NE NE
3 Salaries & Wages Expense 3 + NE +
4 Sales Income 4 - NE -
5 Advertising Expense Expense 5 + + NE
6 Account Receivable Assets 6 - NE -
7 Bonus Bonus 7 NE NE NE
8 Sales Assets 8 + NE +
9 Withdrawals 9 - NE -
Owner’s 10 + NE +
Equity
10 Depreciation Expense

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Gauge: Prepare a chart of Account

A COMPANY Chart of Accounts

Code Assets Equity

100 Cash 300 Capital
101 Accounts Receivable 301 Withdrawal

102 Inventory
103 Office Supplies
104 Prepaid Rent Income
Delivery Vehicles 400 Revenue
105
106 Equipment 401 Interest Income
107 Furnitures

Liabilities Expenses
200 Accounts Payable 500 Wage Expense
201 Loans Payable 501 Electricity
Expense
202 Notes Payable 502 Rent Expense

19
References
Books
• Rabo, Tugaz, Salendrez, et.al (2016). Fundamentals of Accountancy
Business and Management, part 1 Vibal Group Inc. (Publishing &
Printing) pages 44- 50, Araneta Avenue, Quezon City.

• Ferrer R.C. et.al. (2017). Fundamentals of Accountancy, Business and

Management part 1, Bandolin Enterprise, (Publishing and Printing)
Bakakeng Sur, Baguio Rabo City

• Florendo J. G. Fundamentals of Accountancy, Business and

Management part 1, REX Bookstore, (Publishing and Printing) pages
144-163, Nicanor Reyes Sr., St., Sampaloc Manila
• Andres, C.S., et al. (2016)” Teaching Guide for Senior High School
Fundamentals of Accountancy, Business and Management 1” –
Published by
Commission on Higher Education in collaboration with the Philippine
Normal University

• Department of Education - Teacher’s Guide (2016). Fundamentals of

Accountancy, Business and Management I. Teaching Guide for Senior
High School – Academic ABM. The Commission on Higher Education in
collaboration with the Philippine Normal University. Pp 52-64. EC-TEC
Commercial. Quezon City.

Websites:
https://www.coursehero.com/file/42134077/TYPES-OF-MAJOR-

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