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Fundamentals of Accountancy, Business and Management 1 (FABM 1)
Fundamentals of Accountancy, Business and Management 1 (FABM 1)
Self-Learning
Module
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
9
Quarter 3
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. The expanded accounting equation provides fewer details for the owner's
equity amount shown in the basic accounting equation.
RECAP
LESSON
In the expanded accounting equation, the equity account is split into four main
elements: owner’s capital, owner’s withdrawal, revenues, and expenses. The asset
and the liability sections both remain the same in the expanded accounting equation.
The expanded accounting equation also demonstrates the relationship between
the balance sheet and the income statement by seeing how revenues and expenses
flow through into the equity of the business.
A.Sole Proprietorship
DEBIT CREDIT
B. Partnership
DEBIT CREDIT
+ Revenues - Expenses
C. Corporation
DEBIT CREDIT
It is important to note that in all accounting equations, assets and liabilities remain
the same, only the ownership accounts are changed.
R & B Company was incorporated on March 1, 2020, with a paid-up capital of 25,000
shares with a value of ₱ 1,250. During the first three months of its operations, R &
B Company had the following transactions:
DATE TRANSACTIONS
₱1,250,000 (₱1,250,000)
March Capital and
Asset
1
and Asset
and Asset
and Asset
and Asset
13
and Asset
and Asset
and Asset
5
and Asset
ACTIVITIES
Activity 1: Caselets
Directions: Analyze and solve.
A. Compute for total assets if the owner’s initial contribution for opening a business is
₱150,000. Three months after, he made an additional investment of ₱200,000. During
the 2nd quarter of the fiscal year, the business spent ₱100,000 to buy equipment for the
business. Within the normal operations of the business, total revenues amounted to
₱500,000. The business did not incur any present obligations.
B. HBC Printing Press owes ₱500,000 from XYZ bank. The company’s total assets are
₱5,000,000 and within the normal operation of the business, total revenue is ₱2,400,000
and total expenses amounted to ₱1,800, 240. Compute for the owner’s equity if there
were no withdrawals made within the normal operation of the business.
To summarize what you have learned in the lesson, answer the following
questions:
1. The expanded accounting equation affect five elements of accounting and these
are __________, _________, ___________, ___________ and ____________.
2. How were you able to make use of expanded accounting equation to analyze
more complex accounting cases?
3. If a company keeps accurate records, the accounting equation is always in
“balance”. Were you able to use this in solving more complex cases? How?
VALUING
Reflect on this!
POSTTEST
Roberto Car Repair Shop started the business with total assets of ₱200,000 and
total liabilities of ₱100,000 on January 1, 2019. During the year, the business
recorded ₱140,000 in car repair revenue, ₱170,000 in expenses, and Filemon
withdraw ₱24,000.
Required:
A. Compute for the correct balance of Roberto’s Car Repair Shop for the year
ended Dec. 31, 2019.
B. Compute for the correct change in Roberto, Capital during the year 2019.
C. Compute for the correct change in Roberto, Capital account from the
beginning of the year to the end of the year.
KEY TO CORRECTION
ASSETS -LIABILITIES 5.
ASSETS-OWNER’S EQUITY 4.
BALANCE 3.
₱250,000 2. 5. ₱745,000
EQUITY 4. ₱203,500
LIABILITIES,OWNER’S
1. 3. ₱152,400
RECAP 2. ₱75,000
5. TRUE 1. ₱90,500
4. TRUE ACTIVITY 2 C. ₱186,000
3. FALSE B. ₱86,000
2. FALSE B. ₱3,900,240 A. ₱110,000
1. FALSE A. ₱750,000
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
Bragg, Steven. "The Expanded Accounting Equation." AccountingTools. January 09, 2020.
Accessed on July 24, 2020. https://www.accountingtools.com/articles/what-is-the-
expanded-accounting-equation.html.