Notre Dame of Masiag, Inc.

Masiag, Bagumbayan, Sultan Kudarat

Government Recognition (R-XII) No. SK 405761-040, s. 2021
DepEd ID: 405761 ESC ID: 1201693
TIN: 000-578-187 (Non VAT)

LEARNING PLAN
S. Y. 2024-2025
SUBJECT: FUNDAMENTALS OF ACCOUNTANCY, BUSINESS & MANAGEMENT 1 QUARTER: 1
GRADE LEVEL: 12 WEEK: 12

TOPIC:
ACCOUNTING CYCLE OF A MERCHANDIZING BUSINESS
CONTENT STANDARDS:
The learner demonstrates understanding of…
the accounting cycle of a merchandising business to include the following:
1. Journalizing of transactions using the general and special journals, namely: sales journal, purchase journal, cash receipts journal
and cash payments journal
2. Posting to the ledger, namely: general and subsidiary ledgers
3. Preparation of trial balance
4. Adjusting entries to include pre payments, accrual and deferral
5. Worksheet preparation, and
Completing the accounting cycle of a merchandising business
PERFORMANCE STANDARDS:
The learner is able to …
prepare journal entries, post to the ledger, prepare the trial balance, worksheet, adjusting entries and complete the accounting cycle
of a merchandising business.
LEARNING COMPETENCIES:
The students will be able to:
1. Describes the nature of transactions in a merchandising business; ABM_FABM11- IVe-j -35
2. Records transactions of a merchandising business in the general and special journals; ABM_FABM11- IVe-j-36
3. Posts transactions inABM_FABM11- IVe-j -37
The general and subsidiary ledgers; ABM_FABM11- IVe-j -38
4. Prepares a trial balance; ABM_FABM11- IVe-j -39
5. Prepares adjusting entries; ABM_FABM11- IVe-j -40
6. Completes the accounting cycle of a merchandising business; and
7. Prepares the statement of cost of goods sold and gross profitABM_FABM11- IVe-j -41
INTRODUCTION

Transactions having effects on the company’s books require journal entries. These journal entries are recorded in
either the general journal or special journal. This is the second step in the accounting cycle.
INSTRUCTION/DELIVERY
PROCEDURE
A. MOTIVATION
Directions: Read and answer the following questions.

Assume that #WeHealAsOne Drugstore experiences thousands of transactions each day, what will be your initial step to compile and
summarize these financial transactions?
Questions: 1. Where business owners do records their identified transactions?
2. What are the tools that being used to document these transactions?
3. How important are these records in accounting?
B. ACTIVITY:
Activity 1.What is My Normal Balance?
Direction: Determine the normal balances of the following accounts by putting an up arrow ( ) for increase and a down arrow ( ) for
decrease in the debit and credit column.

ACCOUNT CLASSIFICATION DEBIT CREDIT

Asset
Liabilities
Owner’s Equity
Revenue
Expense

C. ANALYSIS
This time, you need to reflect on the following questions because it will help you to understand the appropriate way on
completing the accounting cycle of a service business . Answer the following questions:
1. How do you find the activity?
2. How did you identify the normal balance of each given account?

C. ABSTRACTION
Businesses initially record transactions and events in chronological order. Thus, the journal is referred to as the book of original entry.
There are two types of journals, the general journal and the special journal.
1. General Journal – contains all journal entries of a company.
2. Special Journals – to eliminate the problem of congestion of recording repeating business transactions in the general journal, other
businesses use special journals.
The following are the example of special journals:
a. Cash Receipts Journal –used to record all cash that had been received
b. Cash Disbursements Journal –used to record all transactions involving cash payments
c. Sales Journal (Sales on Account Journal) –used to record all sales on credit (on account)
d. Purchase Journal (Purchase on Account Journal) –used to record all purchases of inventory on credit (or on account)
INVENTORY SYSTEMS
Perpetual Inventory System – updating of inventory is done every time there are changes in the quantity of the goods. (High Price –
Low Volume)
Periodic Inventory System – updating of inventory is done periodically which is usually one or twice a year through physical counting.
(Low price – High Volume)
To further understand the lesson, let the students watch the video given the link below.
https://www.youtube.com/watch?v=OfJZCH4zPiY&t=5s
D. APPLICATION
This time, it’s your turn to shine. Answer the following as directed.
Activity 1: J or NJ?
Directions: Write J if the following transactions require a journal entry and NJ if not.
1. Sale of merchandise to a customer
2. Collection of accounts receivable
3. Increase in inflation rate
4. Hiring of office secretary
5. Election of new company president
6. Return of purchased goods
7. Payment of freight cost
8. Canvass of office equipment
9. Purchase of inventory
10. Grant of sales discount

Activity 3: Prepare Me!

Directions: Prepare the journal entries of the following transactions for #LearnAsOne Bookstore using perpetual and periodic inventory
systems.
Feb. 01 Purchase merchandise from Beng Book costs P30,000 on which cash has been paid immediately.
05 Returned P2,000 worth of defective merchandise. Cash is received upon return of merchandise. 1
5 Sale on account has been made to School Office Supplies. Goods sold are worth P10,000. Selling price is 20,000.
18 Sales worth P5,000 were returned by School Office Supplies as wrong products have been delivered
20 The remaining balance of the receivable related to School Office Supplies was collected

Activity 4: Mind Mapping.

Direction: Complete the mind map below by linking the sub-related topics to the relevant subheadings.
Activity 5:
Direction: Answer the following questions:
1. Give three examples of businesses that use the perpetual inventory system within your community.
2. Give three examples of businesses that use the periodic inventory system within your community
 Activity 5: Enumerate Me!
Direction: Answer the following questions:
1. Give three examples of businesses that use the perpetual inventory system within your community.
2. Give three examples of businesses that use the periodic inventory system within your community

ENRICHMENT

Ask to students to answer the following additional activities.

Activity 6:
Direction: Do what is ask below.
Mr. Malakas Ko started a merchandise business on December 1, 2019. He named the business #KayaKoTo Computer Store. The
Store is located in the biggest mall in Pampanga. Transactions that occurred in December were as follows:
Dec. 1 Mr. Ko invested P300, 000 to start the business.
2 Purchased office equipment P20,000.
3 Purchased 10 units of computers on account for P10,000 each from Maliksi Company and it will cost P2,000 to deliver the goods.
Under the terms: FOB Shipping Point, 2/10, n30.
4 Purchased office supplies worth P2,000 using cash.
7 Returned one computer unit damaged during shipment. 9 Full payment to Maliksi Company was made.
12 Sold one unit for cash to Marie Cruz for P20,000 (PHP10,000 per unit), FOB Shipping Point.
15 Sold two units on account to Ms. Reyes for P40,000 (PHP10,000 per unit) with terms 3/10, n/30, FOB Shipping Point.
17 Ms. Reyes returned one unit of the computers because it is more than what they need. 23 Ms. Reyes paid the said account in full.
27 Mr. Ko withdrew P5,000 for personal use.
30 Paid various expenses for the month: Salaries – P2,000, UtilitiesP2,000, Rent-P3,000.

Chart of Accounts
Assets Revenue
101 Cash 401 Sales
102 Accounts Receivable 402 Sales Return And Allowances
103 Office Supplies 403 Sales Discount Liabilities
104 Office Equipment Expenses
Liabilities 501 Purchases
201 Accounts Payable 502 Purchase Return and Allowances
Equity 503 Purchase Discount
301 Ko, Capital 504 Freight-In
302 Ko, Drawing 505 Rent Expense
506 Utilities Expense
507 Salaries Expense
601 Income Summary

VALUES INTEGRATION
Let the students reflect on the question below.
Activity 4. Let’s Reflect!
1. As Notre Damean, which of the core values NOTRE DAME developed/activated in yourself as we tackle the topic the
Accounting Cycle of a Merchandizing Business?
EVALUATION
Activity 5:
A. Let’s Evaluate!( Nature of transactions in a merchandising business.)
Direction: Identify the statements given. Write your answer in the blank provided.
__________1. This type of business buys merchandise/goods and sell the same at a profit.
__________2. Operating revenue account used by merchandising business.
__________3. This account is used under periodic system for merchandise/goods bought for resale.
__________4. Contra-account used by seller that is granted to the buyer for paying early.
__________5. Account used by the seller to record transportation of merchandise/goods sold under the shipping term F.O.B
destination
__________6. Contra-account used by the buyer for wrong specification or defective merchandise/goods returned to the seller.
__________7. Account used by the buyer to record transportation of goods bought under the shipping term F.O.B shipping point.
__________8. Contra-account used by the seller for wrong specification or defective merchandise returned by the buyer.
__________9. Contra-account used by the buyer when the seller grants them for paying early.

B. Directions: Determine whether General Journal, Sales Journal, Purchases Journal, Cash Receipts Journal, Cash Payment Journal
will be used in recording the transactions. Write your answer in the blank/space provided. Consider the following transactions in your
business:
1. You invested ₱100,000 cash and equipment which cost ₱25,000 in the business.
_____________________________________________________________
2. Purchased furniture on cash for ₱5,000.
_____________________________________________________________
3. Purchased supplies on cash for ₱2,500.
_____________________________________________________________
4. Purchased merchandise from ABC Merchandising for ₱20,000. Terms:2/10, n/30.
_____________________________________________________________
5. Purchased merchandise on cash for ₱12,000.
_____________________________________________________________
6. Paid the freight on merchandise bought above for ₱500.
_____________________________________________________________
7. Sold merchandise to various cash customers for ₱10,000.
_____________________________________________________________
8. Sold merchandise to Mr. Perez for ₱8,000. Terms:2/10, n/30.
_____________________________________________________________
9. Paid the freight on merchandise sold above for ₱200.
_____________________________________________________________
10. Paid the wages employees for ₱4,000.
_____________________________________________________________
11. Paid the account due to creditor.
_____________________________________________________________
12. Sold supplies to a neighborhood office for ₱250.
________________________________________________________
13. Collected the account due from customers.
_____________________________________________________________
14. Received defective merchandise from customers for ₱1,000.
_____________________________________________________________
15. Received Utility bills for ₱3,500.
_____________________________________________________________
C. Directions: Journalize the transactions in the General Journal, and Special Journals: Sales Journal, Purchases Journal, Cash
Receipts Journal, Cash Payment Journal; and posts in the General Ledger and Subsidiary Ledgers. Write your answers in a separate
needed answer sheet. You decided to open a Mini Grocery in your barangay. The following are the transactions in December of the
current year:
1 You invested ₱100,000 cash and equipment for ₱25,000 in the business.
4 Purchased furniture on cash for ₱5,000.
6 Purchased supplies on cash for ₱2,500.
8 Purchased merchandise from ABC Merchandising for ₱20,000. Terms: 2/10, n/30. 1
0 Purchased merchandise from XYZ Merchandising for ₱12,000 on cash.
12 Paid the freight on merchandise bought above for ₱500.
15 Sold merchandise to various cash customers for ₱10,000.
16 Sold merchandise to Mr. Perez for ₱8,000. Terms: 2/10, n/30.
17 Paid the freight on merchandise sold above for ₱200. 18 Paid the wages employees for ₱4,000.
18 Paid within the discount period the account due to ABC Merchandising. 20 Sold merchandise to Mr. Abad for ₱12,000. Terms: 2/10,
n/30.
26 Collected within the discount period the account due from Mr. Perez.
28 Received defective merchandise from Mr. Abad for ₱1,000.
29 Returned defective merchandise worth ₱2,000 to XYZ Merchandising
D. Step #4 - Preparation of Trial Balance. Directions: Prepare a Trial Balance. Write your answer in the 2-column journal. The following
accounts with their corresponding Total Debit and Total Credit were taken from the General Ledger of ABM Mini Grocery on December
31, 20XX:

D. Step #5 - Preparation of adjusting entries and post to the general ledger.

Directions: Prepare Adjusting Entries. Record in the 2-column journal. This activity is the continuation of the Trial Balance in Activity #1.
Additional data for adjustment:
1. Unused supplies, ₱1,500.
2. Unpaid utilities, ₱2,000.
3. Provide for 10% Annual depreciation for Equipment and 10% Annual depreciation for Furniture.
4. Estimated uncollectible accounts is 2% of Outstanding Accounts Receivable.
5. Physical count shows merchandise inventory on hand amounts to ₱16,000. III.

E. Step #6 - Preparation of Adjusted Trial Balance. Directions: Prepare Adjusted Trial Balance. Write your answer in the 2-column
journal. This activity is the continuation of Activity #I and #II. ( Note to the teacher to please provide to the learners data for Unadjusted
Trial Balance and Adjustments before answering this activity)
Prepared: Checked: Approved:

KENETH ROSE F. MABITASAN LANY T. CATAMIN DANILO B. MONTOY, MAEM

Teacher SHS Coordinator Principal