Republic of the Philippines

DEPARTMENT OF EDUCATION
Region XII
Carpenter Hills, City of Koronadal

Lesson Plan in Fundamentals of Accountancy, Business & Management I (ABM)

Code : ABM_FABM11-IIIb-14

Subject : Fundamentals of Accountancy, Business, and Management 1

Grade & Section : Grade 11 - FABM1
Date covered : _____________________

Content Standard : Accounting Concepts and Principles

Performance Standard : Identify generally accepted accounting principles

Learning Competencies : Code : ABM_FABM11-IIIb-14

1. explain the varied accounting concepts and principles
2. solve exercises on accounting principles as applied in various cases

I. Objectives:
At the end of the lesson, the students will be able to:

a. Identify and explain the concept and principles of accounting.

b. Map the concept and principles of accounting, and
c. Value the system of accounting.

II. Subject Matter:

Topic : Concept and Principles of Accounting
Lesson : Accounting Concepts and Principles
Materials : LCD projector, laptop, module, manila paper and pentel pen
Reference : Basic Accounting, Edwin Valencia

III. Procedures:

A. Preparatory Activities
Prayers, Greetings
Checking of Attendance
Setting of Classroom Standards

Review
The teacher will review the previous lesson about the overview of the basic accounting
and conduct a pre-assessment.
 Pre-Assessment:

MATCH ME UP! MATCH ME NAE NAE!

Match the word in box A with the same meaning in Box B.

SET A SET B

PESO 1. CONTINOUS
ACCUMULATE 2. MONETARY UNIT
INDEPENDENT 3. GATHER
4. YEARLY
INDEFINITE
5. SEPARATE
ANNUAL

Motivation: RE TWEET, TWEET, TWEETER

Instruct students to study the speech balloon. Ask some related questions.

1. What does the speech balloon imply?

Unlocking of Difficulties:
Concept _ a plan or intention, a conception or idea
Principle – a fundamental truth, source or basis of something.

DISCUSSION: Accounting Concepts and Principles

1. Accounting Entity – implies that business enterprise is separate

(independent) from the person or people who own and run it.
2. Accrual Basis- recognizing income earned regardless when received
and expense incurred whether paid or unpaid.
3. Going Concern – that the business will operate indefinitely.
 4. Time Period - financial statements shall be reported on a timely basis.
5. Monetary Unit - all financial and business transactions should be
expressed as measurable and quantifiable . e.g. peso

B. Activities: FB ACCOUNT (FACING BOSS ACCOUNT)

1. Manager: What’s up?

1. Bookkeeper: Sir our annual financial reporting 2. What’s the problem?
is fast approaching but there is a problem in our 3. Continue recognize
shipment to America.
revenue and inform the
secretary of Mr.
2. We already recognized a revenue from this
customer but they erroneously transfer the
Gokongwei to transfer it
money to the owner’s personal account. to the company’s
separate account.
3. Yes, we have to make the transfer for proper
recording and to cover the company’s cash deficit
otherwise the negative cash balance might affect
the continuity of company’s existence.

Accounting Concepts and Principles

C. Analysis: Concept Mapping:

(Time –Period)

ACCOUNTING
_____________ CONCEPTS AND _____________
(Accrual Basis) (Going
PRINCIPLES
Concern)

_____________
(Monetary _____________
Unit) (Accounting Entity)
 D. Abstraction:

The concept and principle of accounting is the foundation of the accounting

system. It enables the students to perform activities and guide them in the
application of the accounting theories and principles.

E. Application: INSTA PIC

1. Call a student.
2. Look at the activities in the pictures presented.
Identify the Accounting Principles and Concepts related to the picture.

Accounting Principles and Concepts

Going Time Period Accrual Monetary

Accounting
Concern basis Unit
Entity
IV. Evaluation:
Multiple Choice: Write the letter of the correct answer.

1. Which of the following is not a concept and principle of accounting?

a. Time-period
b. Accrual basis
c. Going Concern
d. Personal interest
2. The financial statements should be stated in terms of a common financial denominator.
a. monetary
b. volume
c. moral values
d. standard valuation

3. Identify the concept defined or described; An Accounting entity is viewed as a continuing

in operation.
a. Accounting Entity
b. Going Concern
c. Time Period
d. Monetary Unit
4. Identify the concept that is violated in the situation; The owner of Angel Enterprise
mixed up his personal expenses with the operating expenses of the corporation.
a. Monetary Unit
b. Going Concern
c. Accounting Entity
d. Time Period
5. Financial Statements of a company is prepared at a regular interval.
a. Going Concern
b. Time Period
c. Monetary Unit
d. Accounting Entity

V. Assignment: Case Analysis: Study and solve the caselet.

1. The owner of the business is questioning why the electricity and water bills consumed
by his family which was paid from cash of the business was charged as his personal
withdrawal. He is claiming that since he is the owner of the business, he has the
discretion to the use of business cash.

How would you explain your accounting system for such payment based on the
accounting principles and concept?