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    FABM1 LAS 12 Types of Major Accounts - EQUITY

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    FABM1 LAS 12 Types of Major Accounts - EQUITY

    Uploaded by

    hsdownshsala
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    8 views1 page

    FABM1 LAS 12 Types of Major Accounts - EQUITY

    Uploaded by

    hsdownshsala

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    LEARNING AS ONE NATION FABM1_12

    Expanded Project
    SHS L E A R N I N G ACTIVITY
    Name: Score/Mark:
    Grade and Section: Date:
    Strand: STEM ABM HUMSS ICT (TVL Track)
    Subject: Fundamentals of ABM 1
    Type of Activity Concept Notes Skills: Exercise / Drill Illustration
    Laboratory Report Essay/Task Report Others: ________
    Activity Title: LA-12. Types of Major Accounts: Equity
    Learning Target: To discuss equity as a major account
    References: 1) Hinayon, et al., Fundamentals of Accounting Vol. 1, p. 36
    (Author, Title, Pages) 2) Q. J. Abcede, CVIF Learning Activities

    Aside from assets and liabilities, one type of major accounts is the Equity of
    the enterprise.

    Assets of an enterprise can be claimed by both the owner/s and the


    creditors.
    a. Claim of creditors liabilities (which
    was discussed in the previous LAS)
    b. Claim of owners Equity (or capital)

    After all liabilities or claims of creditors have been settled, or after all debts of
    the enterprise have been paid, what remains of the assets is the claim of the
    owners of the enterprise called the (or in the case
    of partnerships, or in the case of corporations).

    Equity has the following characteristics:

    It starts with the original investment made by the owner (proprietor,


    partner, or shareholder) into the business.
    It increases every time the owner invests additional cash into the
    business, and when the business earns net income during a period.
    It decreases every time the owner withdraws money from the business for
    personal use, or when the business incurs net loss during a period.

    Exercises:

    A. Formulate an equation in solving for the Equity of an enterprise using the three
    major accounts discussed so far. (Carefully read again the discussion above.)
    B. Using the equation you have formulated, answer the following items. Present
    your step-by-step solutions neatly.
    1. As of January 1, 2021 hp350,000 and liabilities
    of Php100,000. How much is its equity?
    2. By the end of January 2021
    and its liabilities decreased by Php90,000. Therefore, its equity increased by
    Php____________.
    1

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