Republic of the Philippines

Department of Education
Region III
Schools Division Office of Bulacan
Norzagaray National High School
Norzagaray, Bulacan

ENTREPRENEURSHIP

Business Records

ACTIVITY SHEET
NAME: __________________________________

GRADE AND SECTION: __________________________________

DATE OF SUBMISSION: __________________________________

I. OBJECTIVES

A. Content Standards
The learner demonstrates understanding of concepts, underlying
principles and processes of starting and operating a simple business.

B. Performance Standards:
The learner independently or with his/her classmates starts and
operates a business according to the business plan and presents a terminal
report of its operation.

C. MELCs:
The learner identifies the reason for keeping business records.
CS_EP11/12B-ENTREP-IV-i-4

D. Specific Objectives:
1. define business record
2. discuss the financial statements
3. illustrate specific types of accounting records

II. CONTENT

UNIT 2: BUSINESS IMPLEMENTATION

Lesson 5.1.4.: Business Records

III. PROCEDURES:

A. Preliminary Activities

1. Pre-Test

Choose the letter that corresponds to your best answer. Write the letter of
your choice on your answer sheet.

_____ 1. It shows the assets, liabilities and equity in the business on a given date.

a. Income Statement c. Business Records

b. Cash Flow d. Balance Sheet

_____ 2. It shows the total payments you pay your employees and provide a basis for
computing some legal payments.

a. Cash Records c. Sales Records

b. Payroll Records d. Production Records

_____ 3. These are used to record your company’s payment in cash.

a. Sales journal c. Cash Receipts journal

 b. Cash Payments journal d. Purchase journal

_____ 4. These records will be used to control your inventory items.

a. Inventory Records c. Accounting Records

b. Accounting Payable d. Accounts Receivables

_____ 5. These are used to record your company’s purchase.

a. Cash Payments journal c. Purchase journal

b. Cash Receipts journal d. Sales journal

_____ 6. It contains your company’s individual accounts with creditors.

a. Accounts Receivable Ledgers c. Plant Ledgers

b. Accounts Payable Ledgers d. None of the above

_____7. It shows the income and expenses of the business for a given period of time.

a. Income Statement c. Business Records

b. Cash Flow d. Balance Sheet

_____8. It includes meeting minutes, memoranda, employment contracts, and

accounting source documents.

a. Income Statement c. Balance Sheet

b. Cash Flow d. Business Records

_____ 9. It shows all receipts and disbursements made by your firm.

a. Payroll Records c. Sales Records

b. Cash Records d. Production Records

_____ 10. It contains your company’s individual trade with customers’ accounts.

a. Accounts Receivable Ledgers c. Plant Ledgers

b. Accounts Payable Ledgers d. None of the above

_____ 11. These could be used in the analysis of the effectiveness in advertising and
promotions of your products, market coverage and profitability.

a. Payroll Records c. Production Records

b. Cash Records d. Sales Records

_____ 12. These records will reveal how effective is your firm’s credit and collection
policies.

a. Inventory Records c. Accounting Receivable

b. Account Payable d. Accounting Records

_____ 13. These are used to record your company’s sales.

a. Sales journal c. Cash Payments journal

 b. Purchase journal d. Cash Receipts journal

_____ 14. These liability record shows what your firm owes, facilitates obtaining of
available cash discounts and informs you when payments are due.

a. Inventory Records c. Accounting Receivable

b. Accounting Records d. Accounting Payable

_____ 15. It contains your company’s list of all fixed assets.

a. Accounts Receivable Ledgers c. Plant Ledgers

b. Accounts Payable Ledgers d. None of the above

2. Reviewing Previous Lesson

Types of Products
1. Durables – which have a long interval between repeat purchases
because of the long-lasting nature of the product. Examples: TV sets like
Panasonic and Samsung
2. Non -durables – which have stronger repeat purchases because
products are consumable. Examples: Detergents like Surf and Pride.
3. Services – which are essentially intangible because there are no
physical products involved. Examples: Beauty parlors like David’s Salon
or Reyes Haircutters.

B. Presenting the New Lesson

A Business record is a document (hard copy or digital) that records

business dealing. Business records include meeting minutes, memoranda,
employment contracts, and accounting source documents. It must be
retrievable later so that the business dealing can accurately reviewed as
required. Since business is dependent upon confidence and trust, not only
must the record be accurate and easily retrieved, the processes surrounding
its creation and retrieval must be perceived by customers and the business
community to consistently deliver a full and accurate record with no gaps or
additions.

1. ACTIVITY: Motivation

Since business is dependent upon confidence and trust, not only

must the record be accurate and easily retrieved, the processes surrounding
its creation and retrieval must be perceived by customers and the business
community to consistently deliver a full and accurate record with no gaps or
additions.
 Jumbled Words:
Add one letter to each line. Write it in the first blank. Then
rearrange all the letters to spell some business term. Write the new word in
the second blank. For example, you could add B to the letters T I D E to
spell D E B I T.

1. IPTEM ___ ______________________

2. SLAS ___ ______________________
3. NOACTU ___ ______________________
4. MNIEC ___ ______________________
5. LOYLAP ___ ______________________
6. RTICE ___ ______________________
7. SENXEP ___ ______________________

Now arrange the letters you added to spell a 7-letter business term.
__________________________

2. ANALYSIS:

Processing question/s:

A. In your own words, how do you define records?

__________________________________________________________________
__________________________________________________________________
_________________________________

B. What do you mean by business records?

__________________________________________________________________
__________________________________________________________________
_________________________________

C. How keeping a good records importance in a business?

__________________________________________________________________
__________________________________________________________________
_________________________________

3. ABSTRACTION (Discussion of the Topic)

Importance of Keeping Good Records

a.Monitor the The good records need to monitor the progress of
Progress of the a business. Records can show whether the
Business business is improving, which items are selling, or
what changes the need to make. Good records
can increase the likelihood of business success.
b. Prepare the A good records need to prepare accurate financial
Financial statements. This include income (profit and loss)
Statements statements and balance sheets.. These statements
can help in dealing with the bank and creditors and
help manage the business.
An income statement shows the income and
expenses of the business for a given period of time.
A balance sheet shows the assets, liabilities , and
equity in the business on a given date.

c. Identify The money or property will received from many

Sources of sources. The records can identify the sources of
Income income. The information will help to separate
business from non-business receipts and taxable
and non- taxable income.

d. Keep track of Keep the record especially the expenses will greatly
the Deductible needed when preparing the tax return.
Expenses

e. Keep track as The basis is the amount of the investment in

the Basis in property for tax purposes. The basis will be used to
Property figure the gain or loss on the sale, exchange, or
other disposition of property, as well as deductions
for depreciation, amortization, depletion and
casualty losses.

Types of Records for Accounting and Tax Purposes

Business expenses Petty cash
Credit card statements Vehicle use log
Bank statements Travel log
Annual tax returns Cash register tapes
Quarterly tax filings Credit card sales receipts
Payroll Invoices
Inventory Cancelled checks
Sales Check stubs
Income
Other Records
 Purchase orders Accident reports
Employment applications Articles of incorporation
Email and other business Trademark registrations and patents
communication
Inventory logs Licenses
Personnel records Permits

Financial forms/records usually have set standards of reporting and any

differences are very minimal. Samples obtained from an existing similar
project will definitely prove helpful for your design requirements. (p.219 A
Business Planning by Jorge Cuyugan 1996)

These are:

Importance of Business Implementation

1. Accounts These are valuable not only to decisions on
Receivables extension of credits but also to make accurate
billing and maintenance of good relations with
customers. These records will reveal how effective
is your firm’s credit and collection policies.

2. Inventory These records will be used to control your

Records inventory items. In addition, they could also be
used to supply information for your firm’s
purchasing, maintenance of economic supply of
stick and computing turn-over rations.

3. Accounting These liability records shows what your firm owes,

Payable facilitates obtaining of available cash discounts
and informs you when payment are due.

4. Sales Records These could be used in the analysis of the

effectiveness in advertising and promotions of your
products, market coverage and profitability. They
also served as basis for computing your salesman’s
compensation.

5. Production These records provide a basis for your product

Records costing and detect lost profits/cost as a results of
idle manpower/machineries.

6. Payroll Shows the total payments you pay your employees

Records and provide a basis for computing some legal
 payments.

7. Cash Records Shows all receipts and disbursements made by

your firm. They contain your firm’s cash flow and
petty cash balances. They records also enable you
to know when to time your loans and they may
also be used as assurances for ready cash when
needed.

8. Other a. Insurance registers

Accounting
b. Leasehold records
Records
c. Investments records

Specific Types of Accounting Records

1. JOURNALS - a detailed account that records all the financial

transactions of a business.
a) Sales Journal (Sales Book)- these are used to records your
company’s sales.
b) Purchase Journal (Purchase Book)- these are used to record your
company’s purchase.
c) Cash Receipts Journal (Cash Receipts Book)- these are used to
records your company’s cash receipts.
d) Cash Payments Journal (cash payments book or cash
disbursement book)- these are used to records your company’s
payment in cash.
e) General Journal- these are the master journal that all company
transactions or journal entries are recorded in.
A summary of the above records is given in the table below:

JOURNAL TRANSACTION SUPPORTING FORMS

Sales Journal (S) Sales Sales Invoices
Purchase Journal (P) Purchases Purchase Invoices
Cash Receipt Journal (CR) Cash Receipts Official Receipts
Cash Payment Journal (CP) Cash Payments Cash Vouchers
General Journal (G) Others Journal Vouchers

2. LEDGERS

LEDGERS – the book

which contains a
classified and
permanent record of
all transactions of a
Accounts business. Accounts Payable
Receivable Ledgers – contain
Ledgers – contain your company’s
 Plant Ledgers -
contain your
company’s list of
all fixed assets.

C. Independent Activities (Formative)

ACTIVITY A: (Written Work / Task)

• Matching Type: Match the following sample journal in column B to the

type of journal in column A. Write only the letter that corresponds to your
answer.
COLUMN A COLUMN B

1. Cash Payments Journal A.

2. Cash Receipts Journal B.

3. Purchase Journal C.

4. General Journal D.

5. Sales Journal E.

ACTIVITY B: (Written Work / Task)

● Crossword puzzle: Complete the crossword by filling in a word

that fits each definition.

1. 2.

3.
 3. 5.

1. 4.

4.

5.

CROSS:

1. Ledgers contain your company’s list of all fixed assets.

2. Generally used by a business looking to collect money from its client.
3. these are the master journal that all company transactions or journal
entries are recorded in.
4. These records provide a basis for your product costing and detect lost
profits/cost as a results of idle manpower/machineries.
5. These are used to records your company’s sales.

DOWN:

1. Shows the total payments you pay your employees and provide a basis for
computing some legal payments.
2. These records will be used to control your inventory items. In addition, they
could also be used to supply information for your firm’s purchasing,
maintenance of economic supply of stick and computing turn-over rations.
3. Shows all receipts and disbursements made by your firm. They contain your
firm’s cash flow and petty cash balances. They records also enable you to know
when to time your loans and they may also be used as assurances for ready
cash when needed.
4. A permit from an authority to own or use something, do a particular thing
or carry on a trade.
5. A detailed account that records all the financial transactions of a
business.

IV. REFLECTION

Please check (✓) the box as honestly as possible. Your views and
opinions will help me improve your learning experience.
1. After studying this module….
 I now understand what the lesson is all about.
I still do not understand what the lesson is all about.
2. For me, the activities have been…
Easy
A bit difficult
Very difficult
3. Now I can do the activities…
Alone
With minimal supervision from my parent/guardian
With direct supervision or help from my parent/guardian
V. ASSESSMENT:
Post Test
Read each question carefully and answer the following by choosing the
correct answer in the box. Write the letter of your choice on your answer
sheet.
f. Income Statements i. Account Receivable o. Sales Journal
d. Accounts Payable Ledgers m. Plant Ledgers g. Inventory Records
k. Purchase Journal h. Balance Sheet b. Cash Payment Journal
e. Accounting Payable a. Business Records n. Payroll Records
l. Cash Records c. Account Receivable Ledgers j. Sales Records

1. These are used to record your company’s purchase.

2. These are used to record your company’s sales.
3. It shows the income and expenses of the business for a given period of time.
4. It shows the total payments you pay your employees and provide a basis for
computing some legal payments.
5. These could be used in the analysis of the effectiveness in advertising and
promotions of your products, market coverage and profitability.
6. It includes meeting minutes, memoranda, employment contracts, and
accounting source documents.
7. It contains your company’s list of all fixed assets.
8. These records will be used to control your inventory items.
9. These records will reveal how effective is your firm’s credit and collection
policies.
10, These liability record shows what your firm owes, facilitates obtaining of
available cash discounts and informs you when payments are due.
11. It shows the assets, liabilities and equity in the business on a given date.
12. It contains your company’s individual trade with customers’ accounts.
13. It contains your company’s individual accounts with creditors.
14. It shows all receipts and disbursements made by your firm.
15. These are used to record your company’s payment in cash.
Enrichment Activities
Compare the business records used by the Private companies versus Government
Agencies.
Comparative Study between the Private companies versus Government Agencies in
Using Business Records
Private Companies Government Agencies

References:
Aciento – Agustin, Marife, (2017). Entrepreneurship Textbook for Senior High
School. Quezon City: Unlimited Books Library Services & Publishing Inc.