Subject: Accountancy Business and Management 2

Time: 8:15 – 9:15 A.M.

Date: February 18, 2019
Gr. & Sec.: 12-GA-2A
Quarter: 4TH
Lesson: 8
I. Objective:
A. CONTENT STANDARD
The learners demonstrates understanding of;
 The forms of business organization, namely, single proprietorship, partnership, and corporation, and the structure of a SCE of a
single proprietorship that will equip him/her in the preparation of the said financial report.

B. PERFORMANCE STANDARD
 Solve exercises and problems that require preparation of an SCE for a single proprietorship.

C. LEARNING COMPETENCIES
 Discuss the different forms of business organization (ABM_FABM12-Je-8)

II. CONTENTS
 Statement of Changes in Equity (SCE)

III. LEARNING RESOURCES

 References: Fundamentals of Accountancy, Business & Management 2, Rafael Lopez, Jr. (pg. 47 – 51)
 Materials: Visual aid
 Values: Collaboration

IV. Procedure
A. Reviewing previous lesson or presenting the new less
- Do you still remember the following terms? Give example of
accounts for each term. a. Revenues – service income & sales
b. Expenses – salaries and depreciation exp.
1. Revenues c. Assets – inventories, prepaid expense,
2. Expenses property, plant and equipment
3. Assets d. Liabilities – accounts payable, unearned
4. Liabilities income and long term
5. Equity debts
e. Equity

B. Establishing a purpose for the Lesson

What is the primary concern why PEOPLE want to engage in
business? - Individual want to manage business because they want to
earn profit

C. Presenting examples / Instances of the Lesson

Activity Presenting example / Instances of the Lesson
Let’s play a game, the name of the game (Hula hula-an). I will
flash on the monitor the features of the forms of business
organization, you will identify if it is 1. sole or single
proprietorship, 2. partnership, 3. corporation and 4.
cooperative, every correct answer there’s a corresponding point.
1. The business is owned by one person. The capital account is
called owner’s equity.
2. There are two or more owners in a business.
3. This is the most complicated formed by at least five but not more
than fifteen persons called incorporators. Student – sole or single proprietor
4. It is formed by fifteen (15) or more natural persons who are
Filipino citizens, of legal age, having common interest and Student - Partnership
actually residing or working in the intended operation. Student - Corporation

D. Discussing new concepts and practicing new skills #1.

1. What are the forms of business organization? Student - Cooperative

2. Describe each form of business organization The four (4) forms of business organization
1. Sole or single proprietorship
2. Partnership
3. Corporation
4. Cooperative

 The four (4) forms of business organization

1. Sole or single proprietorship - THE BUSINESS IS OWNED
BY ONE PERSON CALLED “PROPRIETOR”. THERE IS
ONLY ONE OWNER IN A SOLE OR SINGLE
PROPRIETORSHIP BUSINESS, THE CAPITAL ACCOUNT IS
CALLED OWNER’S EQUITY.
 2. Partnership - THE BUSINESS IS OWNED BY TWO OR
MORE PERSONS CALLED “PARTNERS” WHO AGREES
AMONG THEMSELVES TO CONTRIBUTE MONEY OR
INDUSTRY AND TO DIVIDE PROFIT IS BASED ON THEIR
AGREED PROFIT AND LOSS
THE CAPITAL ACCOUNTS IS CALLED “PARTNER’S
EQUITY”.

3. Corporations – This is the biggest and most

complicated form of business organization.
This is formed by at least five but not more than fifteen
persons called incorporators.
Their capital is called “Share Capital” which is divided
into units called shares.

4. Cooperative - It is formed by fifteen (15) or more

natural persons who are Filipino citizen, of legal age,
having a common bond of interest and are actually
residing or working in the intended area of operation,
may organize a primary cooperative.
The net surplus of any cooperative shall not be

E. Discussing new concepts and practicing new skills #2

 Example of business organization according to its forms:
 Sole Proprietorship

 Partnership

 CORPORATION

 COOPERATIVE

F. Developing mastery
Business organization can also be classified according to the capital structure.
1. Sole or Single Proprietorship

Owner’s Equity, beginning Pxx

Add: Additional investment Pxx
Profit xx xx
Total Pxx
Less: Withdrawal xx
Owner’s Equity, End Pxx

2. Capital Structure of a Partnership business as follows:

Partners
A B Total

Partner’s Equity, Beg. Pxx Pxx Pxx

Add: Partner’s share in profit xx xx xx
Total Pxx Pxx Pxx
Less: Partner’s Drawing xx xx xx
Partner’s Equity, End Pxx Pxx Pxx

3. The Capital Structure of a Corporate Entity follows:

SHAREHOLDER’S EQUITY
Share Share Pre. Accom. Total
Capital Profit/Loss
Balance,
January 1, 20 _ Pxx Pxx Pxx Pxx
Add: Changes
In equity:
Issuance of
Additional share xx xx xx
Profit, 20_ xx xx
Less: Dividends
Declared and paid __ ___ (xx) (xx)
Balance,
December 31, 20_ Pxx Pxx Pxx Pxx

4. The capital structure of a Cooperative follows:

COOPERATIVES
Subscribed share Capital- ordinary Pxx
Add: General Reserved Fund Pxx
Cooperative Educational and training xx
Optional Fund xx
Community Development fund xx xx
Member’s Equity, End Pxx

How does each business organization differ in terms of capital structure?

G. Finding practical applications of concepts and skills in daily

living (application)
 If you are given opportunity to choose a business, what kind
or form will you choose?

H. Making Generalizations and abstraction about the lesson
 Describe each form of business organization.
Students – Sole or single proprietorship – owned and manage by one
person
- Partnership – there are two or more owners in the business
- Corporation - This is formed by at least five but not more than
fifteen persons called incorporators.

- Cooperative - It is formed by fifteen (15) or more natural

persons who are Filipino citizen, of legal age, having a
common bond of interest and are actually residing or working
in the intended area of operation, may organize a primary
cooperative.

I. Evaluating Learning
 Differentiate the four (4) forms of business organization. (5
points each)

J. Additional activities for application or remediation

 Prepare your personal Statement of Changes in Owner’s
Equity.

V. REMARKS
 The learning objectives was carried out throughout the
session.

VI. REFLECTION
 A. No. of learners who earned 80% of the formative assessment 14

B. No. of learners who require additional activities for remediation

None
C. Did the remedial lesson work? No. of learners who have caught N/A
up with the lesson
D. No. of learners who continue to require remediation N/A

E. Which of my teaching strategies work well? Why did these work? N/A

F. What difficulties did I encounter which my principal or supervisor N/A

can help me solve?
G. What innovation or localized materials dis I used/discover which I Using the example of banig production or the individual who engaged in
wish to share with other teachers? production of bags out of “Banig”

Prepared by:

BRENDA S. COLMINAR
Teacher