Chart of Accounts 666: Fundamentals of Accountancy, Business and Management 1 (FABM 1)
Chart of Accounts 666: Fundamentals of Accountancy, Business and Management 1 (FABM 1)
Self-Learning
Module
Chart of Accounts 11
666
Quarter 3
Fundamentals of Accountancy, Business and Management 1
Quarter 3 – Self-Learning Module11: Chart of Accounts
First Edition, 2020
Republic Act 8293, Section 176 states that no copyright shall subsist in any
work of the Government of the Philippines. However, prior approval of the
government agency or office wherein the work is created shall be necessary for
exploitation of such work for profit. Such agency or office may, among other things,
impose as a condition the payment of royalties.
(FABM 1)
Self-Learning
Module
Chart of Accounts 11
Quarter 3
Introductory Message
This learning material hopes to engage the learners in guided and independent
learning activities at their own pace and time. Further, this also aims to help learners
acquire the needed 21st century skills especially the 5 Cs, namely: Communication,
Collaboration, Creativity, Critical Thinking, and Character while taking into
consideration their needs and circumstances.
In addition to the material in the main text, you will also see this box in the
body of the module:
As a facilitator you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them to
manage their own learning. Moreover, you are expected to encourage and assist the
learners as they do the tasks included in the module.
For the learner:
This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning material while being an active
learner.
Posttest - This measures how much you have learned from the
entire module.
EXPECTATIONS
PRETEST
1. A chart of accounts is a list of all the accounts used by the organization for
financial reporting.
2. Assets, liabilities, income, and expenses are the only standard categories in
the chart of accounts.
3. Expenses include cost of goods sold and intangible items like trademarks and
software.
4. Liability accounts include wages payable and sales tax payable.
5. It is easier to locate specific amounts through chart of accounts.
RECAP
1. The five major accounts are ________, ________, ________, ________, and________.
2. The normal balance of assets and expenses is ___________ while the normal
balance of liabilities, capital or owner’s equity and income is ____________.
3. The two approaches for financial accounting are ____________ and _____________.
LESSON
ASSETS REVENUES
101 Cash 501 Delivery Fees
103 Accounts Receivable EXPENSES
103.1 Allowance for Bad Debts 601 Rent Expense
105 Office Supplies 602 Wages Expense
107 Prepaid Insurance 603 Telephone Expense
109 Prepaid Rent 604 Electricity Expense
110 Notes Receivable 605 Transportation Expense
112 Interest Receivable 606 Gasoline Expense
120 Land 607 Office Supplies Expense
122 Building 608 Entertainment Expense
122.1 Accumulated Depreciation-Building 609 Depreciation Expense-Building
124 Car 610 Depreciation Expense-Car
124.1 Accumulated Depreciation-Car 611 Depreciation Expense-Delivery Van
126 Delivery Van 612 Depreciation Expense-Computer
126.1 Accumulated Depreciation-Van 613 Depreciation Expense-Furniture
127 Computer 615 Van Maintenance Expenses
127.1 Accumulated Depreciation-Computer 699 Miscellaneous Expenses
128 Furniture
128.1 Accumulated Depreciation-Furniture
Illustration
Transactions of RBD Services in December 2017
Dec. 1 Received Php1,000,000 investment from Roberto Sy to start RBD Services. Issued
official receipt (OR) number 001.
3 Bought a computer from Best Buy, Php35,000. Issued CK 002 for Php3,000 down
payment. The balance is on account.
6 Bought delivery van from A-J Car Dealership, Php 1,500,000. Issued CK 003 for the
Php20,000 down payment. Balance is on account.
8 Performed services for cash, Php275,000. Issue OR 002 and sales invoice (SI) 001.
9 Performed services, Php100,000. Issued OR 003 for the Php10,000 down payment and
SI 002 for the full amount. The balance is on account.
16 Performed services, Php200,000. Issued OR 004 for the Php50,000 down payment and
SI 003 for the full amount. The balance is on account.
ACTIVITIES
Activity 1: T-Account
Directions: Determine the T-account balance for cash from the transactions below.
March 3 Purchased computers worth Php100,000 on account and payable within 60 days.
March 13 Earned Php70,000 for services rendered. The client is allowed to pay within 30 days.
March 18 Paid Php25,000 for employees’ salaries.
WRAP-UP
To summarize what you have learned in the lesson, answer the following
questions:
1. What is an account?
2. How do you differentiate footing from balancing?
3. What is a chart of accounts?
VALUING
Reflect on this!
“Learning is not attained by chance, it must be sought for with ardor and
diligence." – Abigail Adams
POSTTEST
Directions: Identify and write your answer before each item number.
APPROACH
APPROACH, MODERN
TRADITIONAL 3.
DEBIT, CREDIT 2. 5.T-account
INCOME, EXPENSES
CAPITAL OR EQUITY, 4.Balancing
ASSETS, LIABILITIES,
1.
RECAP (CR) Php 315,000 3.Footing
5. TRUE (DR) Php1,040,000
4. TRUE ACTIVITY 2 2.Chart of Accounts
3. FALSE
2. FALSE 1. Normal Balance
Php 725,000 (DEBIT Balance)
1. TRUE
PRETEST ACTIVITY 1: POSTTEST
References
Ballada, W. 2017. Fundamentals of Accountancy, Business, and Management 1. VDomDane
Publishers.
Feme, PM. Cabuñag, HP. 2017. Fundamentals of Accountancy, Business and Management 1.
Fastbooks Educational Supply, Inc
Ferrer, RC. Millan, CV. 2017. Fundamentals of Accountancy, Business, and Management 1.
Bandolin Enterprise. San Juan, DA. 2018. Fundamentals of Accounting. Elmoer
Publishing
https://www.accountingcoach.com/search?q=chart+of+accounts&stp=1.
Accessed on August 23, 2020.
https://www.investopedia.com/terms/c/chart-accounts.asp.
Accessed on August 23, 2020.
http://www.netmba.com/accounting/fin/accounts/chart/.
Accessed on August 23, 2020.
https://www.accountingcoach.com/chart-of-accounts/explanation/2.
Accessed on August 30, 2020.