Fundamentals

of Accountancy,
Business &
Management 1
Learner’s Activity
Sheets
Quarter 1 – Module 5
The Five Major Accounts
 Republic of the Philippines
DEPARTMENT OF EDUCATION
Region Office No. VIII
Northern Samar Division
 POLANGI NATIONAL HIGH SCHOOL
Polangi, Catarman Northern Samar

Name: ___________________________________________ Score: _____________________

Grade Level & Section: _____________________ Parent Signature: ____________

FUNDAMENTALS OF ACCOUNTANCY,
BUSINESS AND MANAGEMENT 1

Less
The Five Major Accounts, namely; Assets,
on
Liabilities, Capital, Income and Expenses
4

Activity # 1: Identification
Directions: Identify the following statements. Write your answer on the blank.
_______________1. It is the basic storage of information in accounting.
_______________2. It arises in the course of the ordinary activities of a business and is
also referred to as sales, fees, interest, dividends, royalties and rent.
_______________3. It represents other items that meet the definition of income and may
not arise in the course of the ordinary activities of an entity.
_______________4. It arises in the course of the ordinary activities of a business.
_______________5. It represents other items that meet the definition of expenses and
may, or may not, arise in the course of the ordinary activities of the entity.

Activity #2: True or False

Directions: Before each statement, write TRUE if the statement is correct or FALSE if
incorrect. Write your answer on the blank.
______________ 1) The difference between the total debts and credits in the account
represents the balance of the account.
_______________ 2) If total credits exceed total debits, the account has a debit, the
account has a debit balance.
_______________ 3) Revenue is the type of income that arises in the course of the
ordinary activities of the business.
_______________ 4) All income earned is revenue.
_______________ 5) Losses are expenses that represent other items that meet the
definition of expenses and may or may not arise in the course of the ordinary
activities of the entity.
______________ 6) A Chart of accounts is a list of all the accounts used by the entity.
_______________ 7) Debit is the left side of an account while credit is the right side
_______________ 8) The Income Statement accounts are assets, liabilities and owner’s
equity.
_______________ 9) The realizable amount is computed as acquisition cost minus
accumulated depreciation.
_______________ 10) The cost of insurance paid on ensuring a business is recorded.

Activity #3: Fill in the Chart

Directions: Determine what ACCOUNT TITLE and group according to MAJOR ACCOUNT.
Fill in the chart.

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.

ACCOUNT TITLE MAJOR ACCOUNT

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Activity #4: A. Identification

Directions: Identify the following statement. Kindly fill up on the space provided
before each number.
____________ 1. It is a list of all the account used by a business.
____________ 2. This refers to the left side of the account.
____________ 3. This refers to the right side of the account.
____________ 4. It is one of components of complete set of financial statement. The
balance sheet shows the financial position of a business
____________ 5. It is a sub-component of the statement of comprehensive income,
which is also one of the components of a complete set of financial statements. The
income statement shows the profit or loss of a business.

B. TRUE or FALSE Directions: Before each statement, write TRUE is the statement is
correct and FALSE if incorrect.
___________ 1. Accounts receivable is a receivable supported by oral or informal
promises to pay.
___________ 2. Cash includes money or its equivalent that is readily available for
restricted use.
___________ 3. Another term for allowance for bad debts is allowance for sales
accounts.
___________ 4. Notes payable is obligation supported by oral or informal promises to
pay by the debtor.
___________ 5. Accounts payable and accounts receivable are opposites.
___________ 6. Accrued income is item related to income that was collected in advance
before they earned. After the earning process is completed, these items are
transferred to income.
___________ 7. Owner’s drawings are an account used to record the temporary
withdrawals of the owner during the period.
___________ 8. Cost of sales (or Cost of goods sold) represents the value of inventories
that have been sold during the accounting period.
___________ 9. Freight – in represents the sellers’ cost of delivering goods to
customers.
___________ 10. Equity is assets minus liabilities.

C. Indicate whether it is an increase (+), decrease (-), or 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 ______ _______ _______
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 #5: Collaboration and Communication
If this is a company transactions of Company “A”. Prepare chart of accounts by
completing the box.
Chart of Accounts
Code Description Account Type Financial Position/
s Income Statement
Cash
Prepaid Rent
Revenue
Delivery Vehicles
Accounts Payable
Equipment
Inventory
Interest Income
Advertising Expense
Accounts Receivable
Note Payable
Accrued Expense
Office Supplies
Furniture
Loans Payable
Capital
Withdrawal
Wage Expense
Electricity Expense
Rent Expense

Account Codes
Assets 100-199 Liabilities 200-299
Equity 300-399 Revenues 400-499
Expenses 500-599
Activity #6 Critical Thinking
Rubrics in Checking Essays:
Content = 30%,
Understanding/Application =
25%,
Original Thinking = 25%,
Structure = 10%
and Grammar = 10%.

1. Why do we need to know the importance of chart of accounts? (5 points)

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2. Discuss and explain the important things to considered in creating chart of
accounts. (10 points)
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E-Sites
To further understand the lessons kindly visit additional sources:
1. https://bizfluent.com/info-10005386-five-types-accounts-accounting.html
2. https://strategiccfo.com/standard-chart-of-accounts/
3. https://www.fool.com/knowledge-center/a-list-of-account-titles-in-accounting.aspx
4. http://www.netmba.com/accounting/fin/accounts/chart/
5. https://ph.video.search.yahoo.com/yhs/search?fr=yhs-itm-
001&hsimp=yhs001&hspart=itm&p=videos+on+major+accounts+in+accounting#id
=3&vid=7c1a533ef9e7ee3 dee213ce0b790d4cd&action=click
6. https://ph.video.search.yahoo.com/yhs/search?fr=yhs-itm-
001&hsimp=yhs001&hspart=itm&p=videos+on+major+accounts+in+accounting#id
=27&vid=23e951df224f8c 00ca071735bb848797&action=click.
 Reflections…

Teacher: Business owners either handle their accounting themselves

or they hire someone else to do it. In general, start-ups and sole
proprietors choose the first options to reduce expenses. Even if you do
hire an accountant, it’s important that you have a basic understanding
of what is involved. Start by learning about the five major accounts, so
you know how to read financial reports. –Andra Picincu

Write your learning here:

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Thank you and God bless!!!

References:
• Accounting Theory (n.d.) Retrieved from ttp://accountingtheory.weebly. com/natureand-scope-of—accounting • 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 • Ferrer R.C. et.al. (2017). Fundamentals of Accountancy, Business and
Management part 1, Bandolin Enterprise, (Publishing and Printing) Bakakeng Sur, Baguio City • Rabo, Joy S. et.al. (2019). Fundamentals of
Accountancy, Business and Management 1 (K to 12 Revised Edition), Vibal Publishing, Manila • Valencia, E. and Roxas, G. (2009). Basic
Accounting, 3rd ed. Valencia Education Supply • Valix, Conrado T. et.al. (2015). Financial Accounting, Vol. 1, First part. GIC Enterprises & Co. Inc
• Weygandt, J. et. al. (2012) Accounting Principles 10th ed. John Wiley & Sons (Asia) Pte. Ltd.

PREPARED BY:
CARESSA B. ACIBAR
Subject-Teacher