Entrepreneurship-1112 Q2 SLM WK8

11/12
Entrepreneurship
Quarter 2 – Module 8
Profit or Loss
1
Entrepreneurship – Grade 12
Alternative Delivery Mode
Quarter 2 – Module 8: Profit or Loss
First Edition, 2020
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Published by the Department of Education

Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio
Development Team of the Module
Writer: Ronquilio G. Daño, LPT

Editor: Felicilda S. Alipe
Management Team: Bianito A. Dagatan EdD, CESO V
Schools Division Superintendent
Casiana P. Caberte PhD

Assistant Schools Division Superintendent
Felix C. Galacio Jr. PhD

EPS, Mathematics
Josephine D. Eronico PhD

EPS, LRMDS
Printed in the Philippines by Schools Division of Bohol

Department of Education – Region VII, Central Visayas
Office Address: 0050 Lino Chatto Drive Barangay Cogon, Tagbilaran City,
Bohol
Telefax: (038) 501 – 7550
Tel Nos. (038) 412 – 4938; (038) 411-2544; (038) 501 – 7550
E-mail Address: depedbohol@deped.gov.ph
2
Lesson 1: Profit or Loss
Learning Competencies: Identify where there is a profit or loss for business
At the end of the lesson, you are expected to:

 identify where there is a profit or loss for business
 generate an overall report on the activity, and
 assignment of activity.
What is it?
PROFIT is determined by the money you get from sales, cost of stock and
of course all the expenses you incur.
INCOME EARNED BY THE BUSINESS:

 sales
 Gross profit
 Net profit
BUSINESS EXPENSES ARE THE FOLLOWING:

 Cost of goods
 Commissions/discounts
 Variable and fixed costs
PROFIT EARNED FROM SALES INCREASE THROUGH THE FF SITUTIONS:

 the number of customers
 the volume of goods or services existing customers buy
 the sales price
PROFIT AND LOSS STATEMENT

The profit and loss statement is summary of income and expenses for
your business over a period of time. It is prepared at regular intervals usually
monthly and at financial year end.
TIPS FOR DOING PROFIT OR LOSS STATEMENT:

 do a profit and loss statement in order to analyse all income and
expense categories
 try to do profit and loss statement monthly, you will get a better
understanding of your income and costs.
 recognize areas that need more analysis
LOSS is determined by the expenses that have an impact to profits. Review the
expenses and look for ways that can cut back. Expenses categories include:
 Cost of Goods Sold – these are expenses related directly to sales such as
buying stock.
 Fixed Expenses – these are expenses that stay the same when your sales
increase such as rent, insurance, license fees, and utilities.
 Variable Expenses – these are expenses that go up or down based on the
sales you make such as advertising, delivery charges and electricity
consumed during production.
3
 What’s more?
Directions:
Identify the business transactions below whether it describes profit or
loss. Write P if it describes profit, and L if it is loss. Use the answer sheet
provided.
1. Collected 10,000 from Mr. Arnel Garcia for the service rendered.
2. Paid 12,000 for the delivery charge of raw materials.
3. Paid 5, 000 for the light and water supply.
4. Received 15,000 from Mr. Wong for the service rendered.
Lesson 2: Overall Report
What is it?
ACTIVITIES IN IMPLEMENTING BUSINESS
1. Establishing the business objectives

Objective is a list of goals that the company hopes to achieve. The
objectives must be clear and concise. They must at the same time be
realistic, demanding but achievable.
2. Defining and assigning the task needed to attain the set objectives
This includes the activities that are to be performed, who are responsible
for performing the activities and what the activities are expected to
produce.
3. Setting out timeframe

Each task and its duration must be informed within a clear timeframe.
The result clearly displays all the activities necessary with their
deadlines.
4. Monitoring activities and progress

An important step in the business implementation is monitoring the
activity and its progress. This step is used to analyse the progress and
success of the business plan.
PROJECTED TIME TABLE
The preparation to the actual operation should be enumerated here. The

entrepreneur should list the different activities or steps in the preparatory stage of the
project and present them in Gantt chart to exhibit the duration of each activity.
Gantt chart is the list of all the activities to do prior to business launching. In
every activity the entrepreneur should indicate the length of time needed to do it and
the amount of money to be spent. Below is the sample of Gantt chart with the major
activities plotted to be reported monthly.
SAMPLE OF GANTT CHART
4
Activity Jan Feb Mar Ap May Jun
r
1. Writing of business plan
2. Negotiation for financing
3. Registration of business
4. Construction or renovation of building
5. Acquisition of Equipment
6. Acquisition of Furniture
7. Promotional activities
8. Purchase of raw materials
9. Hiring of personnel
10.Training of personnel
11.Dry run of operations
12.Start of operation
What’s more?
Directions:
Based on the business you have planned and implemented in Module 5
lesson 1, prepare a projected time table with at least 5 activities should
be done before the business operation as an overall report. Follow the
graphic organizer from the given example and use the answer sheet
provided.
Lesson 3: Overall Report on the Activity
What is it?
Overall report on the activity ends with the assignment of activities. This will
state the person or group of person responsible for each of your projected pre-
operating activities in Gantt chart.
For individual assignments, use the following presentation format:

For example:
No. Activity Name In-Charge
1 Writing of business plan Mr. Ronquilio G. Daño, owner
- State the actual name of individual assignee, if possible.
For group assignments, use the following presentation format:

For example:
No. Activity Name Management Personnel Marketing Etc.
7 Promotional activities X
- put an “X” to mark the group responsible.
What’s more?
Directions:
Based on your projected time table with at least 5 pre-operating activities
in Module 8 Lesson 2, make an assignment of activities to complete the
overall report on the business activity. Follow the graphic organizer from
the given example and use the answer sheet provided.
Assessment
5
Direction:
Read each item carefully and write the letter of your choice on your
answer sheet.
1. This is determined by the money you get from sales, cost of stock and of course
all the expenses you incur.
A. loss C. profit
B. cost D. investment
2. This is determined by the expenses that have an impact to profits
A. investment C. cost
B. profit D. loss
3. This refers to the summary of income and expenses for your business over a
period of time.
A. income and expense summary C. profit and loss summary
B. expense summary D. income summary
4. These are expenses related directly to sales such as buying stock.
A. cost of goods sold C. variable expense
B. cost of stock D. fixed expense
5. These are expenses that stay the same when your sales increase such as rent,
insurance, license fees, and utilities.
A. fixed expense C. cost of stock
B. cost of goods sold D. variable expense
6. These are expenses that go up or down based on the sales you make such as
advertising, delivery charges and electricity consumed during production.
A. cost of stock C. fixed expense
B. variable expense D. cost of goods sold
7. This refers to a list of goals that the company hopes to achieve.
A. goals C. mission
B. vision D. objectives
8. This includes the activities that are to be performed, who are responsible for
performing the activities, and what the activities are expected to produce.
A. setting out timeframe C. defining and assigning the task
B. monitoring activities and progress D. establishing the business objectives
9. This must be at the same time realistic, demanding but achievable.
A. establishing the business objectives C. setting out timeframe
B. defining and assigning the task D. monitoring activities and progress
10. This step is used to analyse the progress and success of the business plan.
A. defining and assigning the task C. setting out timeframe
B. monitoring activities and progress D. establishing the business objectives
Answer Sheet
6
Name: __________________________________________________________
Grade & Section: ________________ Score: _______
Quarter 2 – Module 8
Lesson 1
What’s more?
1. 2. 3. 4.
Lesson 2
What’s more?
Lesson 3
What’s more?
Assessment
1. 2. 3. 4. 5. 6. 7.
8. 9. 10.
References
Dr. Marife Agustin-Acierto (2017). Entrepreneurship. Room 215 ICP Building,

CabildoSt., Intramuros Manila: Unlimited Books Library Services and Publishing, Inc.
ENTREPRENEURSHIP 11 & 12
SUMMATIVE TEST 4
7
Direction: Read each item carefully and write the letter of your choice on your answer
sheet.
1. This summarizes the cash receipts and cash disbursements for the
accounting period.
A. statement of owner’s equity C. income statement
B. statement of cash flows D. balance sheet
2. This shows the result of operations for a given period.
A. income statement C. statement of owner’s equity
B. balance sheet D. statement of cash flows
3. This shows the financial condition or position of a business as of a given
period.
A. statement of cash flows C. statement of owner’s equity
B. income statement D. balance sheet.
4. This refers to economic resources owned by the business expected for future
gain like property and rights of value owned by the business.
A. assets C. owner’s equity
B. liabilities D. capital
5. This includes the interest of the owners on the business, claims of the
owners on the assets of the business, and the investment of the owner plus
or minus the results of operations.
A. owner’s equity C. capital
B. assets D. liabilities
6. This refers to the payment made to employee or workers for rendering
services to a company.
A. salaries expense C. insurance expense
B. supplies expense D. interest expense
7. This refers to an expense related to the use of electricity, fuel, water, and
telecommunication facilities.
A. interest expense C. salaries expense
B. utilities expense D. supplies expense
8. This refers to the expired portion of premiums paid on insurance coverage.
a. insurance expense c. supplies expense
b. interest expense d. salaries expense
9. This is determined by the money you get from sales, cost of stock and of
course all the expenses you incur.
A. loss C. profit
B. cost D. investment
10. This is determined by the expenses that have an impact to profits
A. investment C. cost
B. profit D. loss
11. This refers to the summary of income and expenses for your business
over a period of time.
A. income and expense summary C. profit and loss summary
B. expense summary D. income summary
12. These are expenses related directly to sales such as buying stock.
A. cost of goods sold C. variable expense
B. cost of stock D. fixed expense
13. These are expenses that stay the same when your sales increase such as
rent, insurance, license fees, and utilities.
A. fixed expense C. cost of stock
B. cost of goods sold D. variable expense
14. These are expenses that go up or down based on the sales you make
such as advertising, delivery charges and electricity consumed during
production.
A. cost of stock C. fixed expense
B. variable expense D. cost of goods sold
15. This refers to a list of goals that the company hopes to achieve.
A. goals C. mission
B. vision D. objectives

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11/12

First Edition, 2020

Published by the Department of Education

Development Team of the Module

Writer: Ronquilio G. Daño, LPT

Casiana P. Caberte PhD

Felix C. Galacio Jr. PhD

Josephine D. Eronico PhD

Printed in the Philippines by Schools Division of Bohol

Learning Competencies: Identify where there is a profit or loss for business

At the end of the lesson, you are expected to:

INCOME EARNED BY THE BUSINESS:

BUSINESS EXPENSES ARE THE FOLLOWING:

PROFIT EARNED FROM SALES INCREASE THROUGH THE FF SITUTIONS:

PROFIT AND LOSS STATEMENT

TIPS FOR DOING PROFIT OR LOSS STATEMENT:

Lesson 2: Overall Report

ACTIVITIES IN IMPLEMENTING BUSINESS

1. Establishing the business objectives

3. Setting out timeframe

4. Monitoring activities and progress

PROJECTED TIME TABLE

The preparation to the actual operation should be enumerated here. The

SAMPLE OF GANTT CHART

Lesson 3: Overall Report on the Activity

For individual assignments, use the following presentation format:

- State the actual name of individual assignee, if possible.

For group assignments, use the following presentation format:

- put an “X” to mark the group responsible.

Dr. Marife Agustin-Acierto (2017). Entrepreneurship. Room 215 ICP Building,

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