Teaching Guide
The Commission on Higher Education
in collaboration with the Philippine Normal University
Teaching Guide for Senior High School
FUNDAMENTALS OF
ACCOUNTANCY, BUSINESS,
AND MANAGEMENT 2
SPECIALIZED SUBJECT
T h i s Te a c h i n g G u i d e w a s
collaboratively developed and
reviewed by educators from public
and private schools, colleges, and
universities. We encourage teachers
and other education stakeholders to
email their feedback, comments, and
recommendations to the Commission
on Higher Education, K to 12
Transition Program Management Unit
- Senior High School Support Team at
. We value your
feedback and recommendations.
, Development Team
Team Leader: Joselito G. Florendo
Writers: Reymond Patrick P. Monfero, Carlsberg S.
This Teaching Guide by the
Andres, Dani Rose C. Salazar, Christopher B.
Commission on Higher Education is
Honorario licensed under a Creative
Technical Editor: Brad Neiel T. dela Cruz Commons Attribution-
NonCommercial-ShareAlike 4.0
Copyreader: Daniel Day V. Aguillon
International License. This means
Published by the Commission on Higher Education, 2016 Illustrator: Patricia G. De Vera you are free to:
Chairperson: Patricia B. Licuanan, Ph.D. Share — copy and redistribute the
Cover Artists: Maria Cecilia C. Manalo
Commission on Higher Education material in any medium or format
Adapt — remix, transform, and
K to 12 Transition Program Management Unit
build upon the material.
Office Address: 4th Floor, Commission on Higher Education, Senior High School Support Team
CHED K to 12 Transition Program Management Unit The licensor, CHED, cannot revoke
C.P. Garcia Ave., Diliman, Quezon City these freedoms as long as you
Telefax: (02) 441-0927 / E-mail Address: Program Director: Karol Mark R. Yee follow the license terms. However,
under the following terms:
Lead for Senior High School Support:
Attribution — You must give
Gerson M. Abesamis
appropriate credit, provide a link to
Consultants Course Development Officers: the license, and indicate if changes
THIS PROJECT WAS DEVELOPED WITH THE PHILIPPINE NORMAL UNIVERSITY. John Carlo P. Fernando, Danie Son D. Gonzalvo, were made. You may do so in any
University President: Ester B. Ogena, Ph.D. reasonable manner, but not in any
Stanley Ernest G. Yu
way that suggests the licensor
VP for Academics: Ma. Antoinette C. Montealegre, Ph.D.
Lead for Policy Advocacy and Communications: endorses you or your use.
VP for University Relations & Advancement: Rosemarievic V. Diaz, Ph.D.
Averill M. Pizarro NonCommercial — You may not use
Ma. Cynthia Rose B. Bautista, Ph.D., CHED the material for commercial
Teacher Training Officers: purposes.
Bienvenido F. Nebres, S.J., Ph.D., Ateneo de Manila University
Ma. Theresa C. Carlos, Mylene E. Dones ShareAlike — If you remix,
Carmela C. Oracion, Ph.D., Ateneo de Manila University
Monitoring and Evaluation Officer: transform, or build upon the
Minella C. Alarcon, Ph.D., CHED material, you must distribute your
Robert Adrian N. Daulat
Gareth Price, Sheffield Hallam University contributions under the same license
Stuart Bevins, Ph.D., Sheffield Hallam University Administrative Officers: as the original.
Ma. Leana Paula B. Bato, Kevin Ross D. Nera,
Allison A. Danao, Ayhen Loisse B. Dalena
Printed in the Philippines by EC-TEC Commercial, No. 32 St.
Louis Compound 7, Baesa, Quezon City,
,Table of Contents
Lesson 1: Statement of Financial Position (SFP) . . . . . . . . . 1
Lesson 2: Statement of Comprehensive Income (SCI) . . . . . . . . 19
Lesson 3: Statement of Changes in Equity (SCE).. . . . . . . . . . . . 36
Lesson 4: Cash Flow Statement (CFS) . . . . . . . . . . . . . . . . . . . . 46
Lesson 5: Analysis and Interpretation of Financial Statements 1 61
Lesson 6: Analysis and Interpretation of Financial Statements 2 78
Lesson 7: Accounting Books - Journal and Ledger. . . . . . . . . . . 96
Lesson 8: Basic Documents and Transactions Related to Bank
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Lesson 9: Basic Reconciliation Statement . . . . . . . . . . . . . . . . . 124
Lesson 10: Accounting Practice Set. . . . . . . . . . . . . . . . . . . . . . 139
Lesson 11: Income and Business Taxation . . . . . . . . . . . . . . . . . 171
Lesson 12: Soil Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
Lesson 13: Human Activity and the Environment . . . . . . . . . . . 172
, Introduction
As the Commission supports DepEd’s implementation of Senior High School (SHS), it upholds the vision
and mission of the K to 12 program, stated in Section 2 of Republic Act 10533, or the Enhanced Basic
Education Act of 2013, that “every graduate of basic education be an empowered individual, through a
program rooted on...the competence to engage in work and be productive, the ability to coexist in
fruitful harmony with local and global communities, the capability to engage in creative and critical
thinking, and the capacity and willingness to transform others and oneself.”
To accomplish this, the Commission partnered with the Philippine Normal University (PNU), the National
Center for Teacher Education, to develop Teaching Guides for Courses of SHS. Together with PNU, this
Teaching Guide was studied and reviewed by education and pedagogy experts, and was enhanced with
appropriate methodologies and strategies.
Furthermore, the Commission believes that teachers are the most important partners in attaining this
goal. Incorporated in this Teaching Guide is a framework that will guide them in creating lessons and
assessment tools, support them in facilitating activities and questions, and assist them towards deeper
content areas and competencies. Thus, the introduction of the SHS for SHS Framework.
The SHS for SHS Framework, which stands for “Saysay-Husay-Sarili for Senior High School,” is at the
core of this book. The lessons, which combine high-quality content with flexible elements to
SHS for SHS accommodate diversity of teachers and environments, promote these three fundamental concepts:
Framework
SAYSAY: MEANING HUSAY: MASTERY SARILI: OWNERSHIP
Why is this important? How will I deeply understand this? What can I do with this?
Through this Teaching Guide, Given that developing mastery When teachers empower
teachers will be able to facilitate goes beyond memorization, learners to take ownership of
an understanding of the value teachers should also aim for their learning, they develop
of the lessons, for each learner deep understanding of the independence and self-
to fully engage in the content subject matter where they lead direction, learning about both
on both the cognitive and learners to analyze and the subject matter and
affective levels. synthesize knowledge. themselves.
The Commission on Higher Education
in collaboration with the Philippine Normal University
Teaching Guide for Senior High School
FUNDAMENTALS OF
ACCOUNTANCY, BUSINESS,
AND MANAGEMENT 2
SPECIALIZED SUBJECT
T h i s Te a c h i n g G u i d e w a s
collaboratively developed and
reviewed by educators from public
and private schools, colleges, and
universities. We encourage teachers
and other education stakeholders to
email their feedback, comments, and
recommendations to the Commission
on Higher Education, K to 12
Transition Program Management Unit
- Senior High School Support Team at
. We value your
feedback and recommendations.
, Development Team
Team Leader: Joselito G. Florendo
Writers: Reymond Patrick P. Monfero, Carlsberg S.
This Teaching Guide by the
Andres, Dani Rose C. Salazar, Christopher B.
Commission on Higher Education is
Honorario licensed under a Creative
Technical Editor: Brad Neiel T. dela Cruz Commons Attribution-
NonCommercial-ShareAlike 4.0
Copyreader: Daniel Day V. Aguillon
International License. This means
Published by the Commission on Higher Education, 2016 Illustrator: Patricia G. De Vera you are free to:
Chairperson: Patricia B. Licuanan, Ph.D. Share — copy and redistribute the
Cover Artists: Maria Cecilia C. Manalo
Commission on Higher Education material in any medium or format
Adapt — remix, transform, and
K to 12 Transition Program Management Unit
build upon the material.
Office Address: 4th Floor, Commission on Higher Education, Senior High School Support Team
CHED K to 12 Transition Program Management Unit The licensor, CHED, cannot revoke
C.P. Garcia Ave., Diliman, Quezon City these freedoms as long as you
Telefax: (02) 441-0927 / E-mail Address: Program Director: Karol Mark R. Yee follow the license terms. However,
under the following terms:
Lead for Senior High School Support:
Attribution — You must give
Gerson M. Abesamis
appropriate credit, provide a link to
Consultants Course Development Officers: the license, and indicate if changes
THIS PROJECT WAS DEVELOPED WITH THE PHILIPPINE NORMAL UNIVERSITY. John Carlo P. Fernando, Danie Son D. Gonzalvo, were made. You may do so in any
University President: Ester B. Ogena, Ph.D. reasonable manner, but not in any
Stanley Ernest G. Yu
way that suggests the licensor
VP for Academics: Ma. Antoinette C. Montealegre, Ph.D.
Lead for Policy Advocacy and Communications: endorses you or your use.
VP for University Relations & Advancement: Rosemarievic V. Diaz, Ph.D.
Averill M. Pizarro NonCommercial — You may not use
Ma. Cynthia Rose B. Bautista, Ph.D., CHED the material for commercial
Teacher Training Officers: purposes.
Bienvenido F. Nebres, S.J., Ph.D., Ateneo de Manila University
Ma. Theresa C. Carlos, Mylene E. Dones ShareAlike — If you remix,
Carmela C. Oracion, Ph.D., Ateneo de Manila University
Monitoring and Evaluation Officer: transform, or build upon the
Minella C. Alarcon, Ph.D., CHED material, you must distribute your
Robert Adrian N. Daulat
Gareth Price, Sheffield Hallam University contributions under the same license
Stuart Bevins, Ph.D., Sheffield Hallam University Administrative Officers: as the original.
Ma. Leana Paula B. Bato, Kevin Ross D. Nera,
Allison A. Danao, Ayhen Loisse B. Dalena
Printed in the Philippines by EC-TEC Commercial, No. 32 St.
Louis Compound 7, Baesa, Quezon City,
,Table of Contents
Lesson 1: Statement of Financial Position (SFP) . . . . . . . . . 1
Lesson 2: Statement of Comprehensive Income (SCI) . . . . . . . . 19
Lesson 3: Statement of Changes in Equity (SCE).. . . . . . . . . . . . 36
Lesson 4: Cash Flow Statement (CFS) . . . . . . . . . . . . . . . . . . . . 46
Lesson 5: Analysis and Interpretation of Financial Statements 1 61
Lesson 6: Analysis and Interpretation of Financial Statements 2 78
Lesson 7: Accounting Books - Journal and Ledger. . . . . . . . . . . 96
Lesson 8: Basic Documents and Transactions Related to Bank
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Lesson 9: Basic Reconciliation Statement . . . . . . . . . . . . . . . . . 124
Lesson 10: Accounting Practice Set. . . . . . . . . . . . . . . . . . . . . . 139
Lesson 11: Income and Business Taxation . . . . . . . . . . . . . . . . . 171
Lesson 12: Soil Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
Lesson 13: Human Activity and the Environment . . . . . . . . . . . 172
, Introduction
As the Commission supports DepEd’s implementation of Senior High School (SHS), it upholds the vision
and mission of the K to 12 program, stated in Section 2 of Republic Act 10533, or the Enhanced Basic
Education Act of 2013, that “every graduate of basic education be an empowered individual, through a
program rooted on...the competence to engage in work and be productive, the ability to coexist in
fruitful harmony with local and global communities, the capability to engage in creative and critical
thinking, and the capacity and willingness to transform others and oneself.”
To accomplish this, the Commission partnered with the Philippine Normal University (PNU), the National
Center for Teacher Education, to develop Teaching Guides for Courses of SHS. Together with PNU, this
Teaching Guide was studied and reviewed by education and pedagogy experts, and was enhanced with
appropriate methodologies and strategies.
Furthermore, the Commission believes that teachers are the most important partners in attaining this
goal. Incorporated in this Teaching Guide is a framework that will guide them in creating lessons and
assessment tools, support them in facilitating activities and questions, and assist them towards deeper
content areas and competencies. Thus, the introduction of the SHS for SHS Framework.
The SHS for SHS Framework, which stands for “Saysay-Husay-Sarili for Senior High School,” is at the
core of this book. The lessons, which combine high-quality content with flexible elements to
SHS for SHS accommodate diversity of teachers and environments, promote these three fundamental concepts:
Framework
SAYSAY: MEANING HUSAY: MASTERY SARILI: OWNERSHIP
Why is this important? How will I deeply understand this? What can I do with this?
Through this Teaching Guide, Given that developing mastery When teachers empower
teachers will be able to facilitate goes beyond memorization, learners to take ownership of
an understanding of the value teachers should also aim for their learning, they develop
of the lessons, for each learner deep understanding of the independence and self-
to fully engage in the content subject matter where they lead direction, learning about both
on both the cognitive and learners to analyze and the subject matter and
affective levels. synthesize knowledge. themselves.
