Accounting 101: Guide to Business Accounting

Accounting:A comprehensive, easy-to-follow course on bookkeeping and accounting skills geared to business professionals
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Instructed by Christos Pittis Business / Finance
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  • Lectures 29
  • Length 14.5 hours
  • Skill Level Beginner Level
  • Languages English
  • Includes Lifetime access
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    Certificate of Completion
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About This Course

Published 4/2014 English

Course Description

GREAT ACHIEVEMENT!

Almost 7,000 STUDENTS in less than 6 MONTHS! ........... AND more than 52 REVIEWS and RATINGS!

Important notes:

  • Initial price is $139, but will next increase to $199 (Jan 1st 2016)
  • New lectures and updates
  • Full 30 day money-back-in-full guarantee
  • Support
  • More than 12,000 students joined my courses and 40+ FIVE star reviews

*UK GAAP accounting standards. In this level students from countries following IAS can follow as well. In simple words, students from all countries can follow this course*

Why to learn Accountancy

  • To establish your own business, you need to know some basic accounting principles in order to communicate effectively with investors, suppliers and customers
  • To be better at negotiations
  • To know the best price of selling. Learn how to estimate the break-even point and at which point you can reduce the price

The aim of this course is to enable students to develop:

1. an understanding of the basic principles underlying the recording of business transactions

2. The ability to maintain the books of, and prepare final accounts for, sole traders

The course is suitable for canditates who work or wish to work in areas of business that will involve the recording of financial transactions. All businesses require accurate accounting records that are maintained on a regular basis. Consequently, there is a demand for employees who possess this skills.

Syllabus topics:

1. The Accounting Equation and the basis of double-entry book-keeping

2. Recording transactions through double entry

3. Balancing accounts

4. Purchases/Sales/Returns

5. The Ledger: its subdivision

6. Day Books

7. Bank facilities/methods of payment or receipt of money

8. Cash Book and cash discount

9. Bank reconciliation

10. Petty Cash Book and the Imprest System

11. Trial Balance

12. Adjusting for accruals and prepayments in the final accounts

13. Depreciation of fixed assets

14. The entries relating to bad debts

15. The Journal

16. Capital and revenue expenditure

17. Errors in the accounts and their correction

18. Effect of Profit (or Loss) and drawings upon capital

19. Trading and Profit and Loss Accounts

20. The Balance Sheet

21. Control Accounts – an introduction

Assessment Objectives

The course will assess the candidate's ability to demonstrate:

an understanding of the Accounting Equation and the basis of double-entry book- keeping

 how to prepare journal entries and ledger accounts by using the double entry system

 how to prepare prime entry records for purchases, sales, returns and cash

 how to prepare journal entries

 how to prepare a trial balance and the final accounts for sole traders

 an understanding of banking facilities and the operation of the cash book

 how to prepare a bank reconciliation statement

 how to make adjustments for accruals and prepayments in the final accounts

 an understandinfg of the entries necessary for the depreciation of fixed assets

 how to make entries relating to the writing off of bad debts

 an understanding of the distinction between capital and revenue expenditure

 how to correct errors in the accounts of sole traders

an understanding of the use of control accounts as a check on the sales and purchases ledger

Skills Assessed

Candidates will need to show that they can:

add, subtract, divide and multiply, calculate and use percentages

prepare journal entries and ledger accounts

present final accounts for sole traders

What i offer:

Recorded lessons

Teacher's powerpoint slides

Book

Solutions

Past Papers

What are the requirements?

  • computer
  • internet connection
  • google chrome

What am I going to get from this course?

  • Verifiable Certification of completion
  • Book
  • Solutions
  • Teachers powerpoint slides
  • past paper
  • An understanding of the accounting equation and the basis of the double-entry book-keeping
  • How to prepare journal entries and ledger accounts by using the double-entry system
  • How to prepare prime entry records for purchases, sales, returns and cash
  • How to prepare journal entries
  • How to prepare a Trial Balance and the Final Accounts for sole traders
  • an understanding of banking facilities and the operation of the cash book
  • How to prepare a Bank Reconciliation Statement
  • How to make adjustments for accruals and prepayments in the Final Accounts
  • An understanding of the entries necessary for the depreciation of Fixed Assets
  • How to make entries relating to the writing off of Bad Debts
  • An understanding of the distinction between capital and revenue expenditure
  • How to correct errors in the accounts of sole traders
  • An understanding of the use of Control Accounts as a check on the Sales and Purchases Ledger

What is the target audience?

  • students
  • young entrepreneurs
  • professionals
  • accounting staff
  • unemployed

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

22 pages

International Accounting Standards

(IAS) Guidance:

Whilst there are no compulsory requirements for the presentation of the accounts of sole traders, it is recommended that candidates become familiar with preparing accounts in the IAS format.

The impact of international accounting standards at this level is mainly presentational. Candidates preparing accounts under recognisable formats will not be penalised as IAS does not apply to sole traders.

However, candidates wishing to progress to higher levels would be encouraged to use these formats.

02:40

The aim of this course is to enable students to develop:

1. an understanding of the basic principles underlying the recording of business transactions

2. The ability to maintain the books of, and prepare final accounts for, sole traders

The course is suitable for canditates who work or wish to work in areas of business that will involve the recording of financial transactions. All businesses require accurate accounting records that are maintained on a regular basis. Consequently, there is a demand for employees who possess this skills.

Syllabus topics:

1. The Accounting Equation and the basis of double-entry book-keeping

2. Recording transactions through double entry

3. Balancing accounts

4. Purchases/Sales/Returns

5. The Ledger: its subdivision

6. Day Books

7. Bank facilities/methods of payment or receipt of money

8. Cash Book and cash discount

9. Bank reconciliation

10. Petty Cash Book and the Imprest System

11. Trial Balance

12. Adjusting for accruals and prepayments in the final accounts

13. Depreciation of fixed assets

14. The entries relating to bad debts

15. The Journal

16. Capital and revenue expenditure

17. Errors in the accounts and their correction

18. Effect of Profit (or Loss) and drawings upon capital

19. Trading and Profit and Loss Accounts

20. The Balance Sheet

21. Control Accounts – an introduction

Assessment Objectives

The examination will assess the candidate’s ability to demonstrate:

an understanding of the Accounting Equation and the basis of double-entry book- keeping

 how to prepare journal entries and ledger accounts by using the double entry system

 how to prepare prime entry records for purchases, sales, returns and cash

 how to prepare journal entries

 how to prepare a trial balance and the final accounts for sole traders

 an understanding of banking facilities and the operation of the cash book

 how to prepare a bank reconciliation statement

 how to make adjustments for accruals and prepayments in the final accounts

 an understandinfg of the entries necessary for the depreciation of fixed assets

 how to make entries relating to the writing off of bad debts

 an understanding of the distinction between capital and revenue expenditure

 how to correct errors in the accounts of sole traders

an understanding of the use of control accounts as a check on the sales and purchases ledger

Skills Assessed

Candidates will need to show that they can:

 add, subtract, divide and multiply, calculate and use percentages

 prepare journal entries and ledger accounts

 present final accounts for sole traders

355 pages

Hi friends! You can download the book and study video lectures and book in parallel. Solutions can be found in the last lecture in the answer book.

Section 1: Accounts, Final Accounts and Ledger
13:46

Students must be able to:

1. Explain the function of the Balance Sheet and, in particular, the recognition that it stands outsite the double entry system

2. Define the significance and use of the terms Fixed Assets and Current Assets

3. Understand the difference between long-term liabilities and amounts payable within 12 months (current liabilities) ; the naming of accounts which might appear under each of these headings

4. Prepare a Balance Sheet in effective format.

5. Show the appropriate grouping of items within the Balance Sheet (Fixed Assets, Current Assets, Capital, Long-term Liabilities, Current Liabilities)

6. Show the appropriate inclusion of prepayments and accruals under Current Assets and Current Liabilities respectively

Why Balance Sheet balances
1 question
06:01

Students must be able to:

1. Understand that every transaction affects 2 accounts

2. Prepare Balance Sheet and accounting equation after transactions

22:32

Students must be able to:

1. Complete debit and credit entries recording individual transactions

2. Prepare T-type accounts

3. Prepare a transaction/entry within an account, ie date together with, normally, the name of the "other" account involved in that particular transaction/entry

4. Balance the T-type ledger account including bringing the balance down for the start of the next accounting period

5. Explain the significance of any particular account balance, eg a credit balance on a creditor account, a debit balance on an expense account

6. Prepare accounts in running balance format

7. Transfer a balance at period end to Trading account or Profit and Loss account, as appropriate

8. Show the procedure for other end-of-period balancing, and ruling off, of accounts

11:16

Students must be able to:

1. Record the effects on double-entry accounts of purchases of goods/services (for cash, on credit)

2. Show the effects on double-entry accounts of the sale of goods/services (for cash, on credit)

3. Record the return of goods previously bought or sold (or alternatively of an allowance being made in lieu of actual return of goods

4. Show the use of the term returns, both inwards and outwords; recognise the alternative terms in use, sales returns and purchases returns

5. Explain the part played in book-keeping by the invoice and the credit note

26:08

... continue from previous lecture. Watch the examples

05:27

Students must be able to:

1. Explain and show that Profit (or Loss) is the difference between opening and closing capital balances (allowing for any drawings or the introduction of additional capital

2. Explain the meaning of the term drawings; the various forms of drawings

3. Record the book-keeping entries for drawings

4. Calculate the possible effect of drawings upon the amount of capital

5. Record how drawings are stated in the Balance Sheet and, where necessary, in the Trading account (where goods are withdrawn for private benefit)

6. Record expenses and revenues entries

7. Transfer expenses and incomes to Profit and Loss account

8. Learn various expenses and income accounts

9. Record the double-entries for expense amounts between the Profit and Loss account and the individual expense accounts

24:30

... continue from previous lecture. Watch the examples

Service revenues
1 question
19:01

Students must be able to:

1. Explain the meaning of an expense accrual

2. Explain the meaning of an expense prepayment

3. Make adjustments for end-of-period expenses accruals and expense prepayments in the Profit and Loss account and Balance Sheet

4. Explain the meaning of an income accrual

5. Explain the meaning of an income prepayment

6. Define, in brief, capital expenditure and revenue expenditure

7. Classify a list of items into capital expenditure and revenue expenditure respectively

8. Show the different ways in which capital expenditure and revenue expenditure items are dealt with in the accounts

9. Calculate the effect on final accounts of the incorrect treatment of capital expenditure and/or revenue expenditure

23:20

Students must be able to:

1. Explain the nature of depreciation of Fixed Assets and the need for making provision in the accounts (with the awareness that this is not the putting by of cash for replacement)

2. Explain the basis of the straight line (or fixed instalment) method of depreciation

3. Calculate the amount of annual depreciation and its effect on the book value of a Fixed Asset, using the straight line method

4. Explain the basis of the reducing balance method (or diminishing balance) of depreciation

5. Calculate the amount of annual depreciation and its effect on the book value of a Fixed Asset, using the reducing balance method

6. Record the accounting entries for the straight line and reducing balance methods of depreciation, keeping the Fixed Assets account at cost and using a Provision for Depreciation account to accumulate the yearly depreciation

7. Compare, through basic calculation, use of the straight line method and use of the reducing balance method

8. Record the entries in the Profit and Loss account and Balance Sheet relating to Fixed Assets and their depreciation

9. Use the terms aggregate depreciation and net book value in the Balance Sheet

Fixed Asset passes useful life
1 question
19:31

Students must be able to:

1. Explain how cash discount can be part of the terms of sale

2. Calculate cash discount

3. Record the double-entry effect of Discount Allowed and Discount Received respectively

4. Explain trade discount

5. Calculate trade discount, from list prices to obtain net price

6. Explain the differences between trade discount and cash discount and the different book-keeping effects

18:09

Students must be able to:

1. Record the accounting entries for writing off individual debtor balances, in whole or in part, using a Bad Debts account

2. Record the end-of-period transfer of total debts written off from Bad Debts account to the Profit and Loss account

3. Record the accounting entries relating to the recovery of debts previously written off

05:04

Students must be able to:

1. Explain that the Trading and Profit and Loss accounts are part of the double-entry system

2. Record the basic structure of income, costs and profit in a business

3. Record returns inwards and returns outwards suitably deducted to reveal net sales and net purchases respectively

4. Explain and apply the valuation concept of stock: the lower of cost or net realizable value

5. Calculate the cost of good sold

6. Show the make-up of cost of goods sold

7. Differentiate between trade income and other income

8. Record in the Stock account the double-entry relationship between the Trading account and the Stock account

9. Record end-of-period transfer of balances from the General Ledger to the Trading account

10. Explain the difference between the carriage inwards and carriage outwards and record them in the Trading account and Profit and Loss account respectively

11. Show income and expenses within the Final accounts, with related items being suitably brought together

12. Prepare a Trading and/or Profit and Loss account and calculate gross profit/net profit. (Vertical and horizontal format)

20:57

... continue from previous lecture. Watch the examples

Section 2: Ledger and subsidiary books
03:31

Students must be able to:

1. Explain the functions of the ledger

2. Show how the ledger might be sub-divided, eg sales ledger, purchases ledger, cash book, general ledger

3. State the alternative names for the different ledgers, eg debtors ledger, creditors ledger, nominal ledger

4. Identify from a list of accounts, or from transaction details, the naming of the ledger(s) in which each would be recorded

5. Distinguish between personal, real and nominal accounts

6. Show how the sales ledger might be sub-divided

16:36

Students must be able to:

1. Explain the dual role of the cash book as a book of prime entry and an integral part of the double-entry record

2. Prepare a three-column Cash Book (the bank columns recording the Bank current account only)

3. Record individual transactions from the Cash Book to the Ledger

4. Record the differences in book-keeping entries regarding the withdrawal of funds from the bank, as between: a) that for use in the business - a contra entry b) that for private use - drawings

5. Record the variations of entry arising on and from the sale of goods for cash, eg the immediate banking of cash as against the delayed banking of cash

6. Record the book-keeping entries required on the transfer of funds between the bank current account and the bank deposit account

7. Record entries in the dicount columns in the cash book

8. Record the book-keeping entries arising on the dishonouring a cheque

9. Balance the cash book, bringing the balance down for the start of the new period

10. Record the periodic posting o discount-column totals from the cash book to the Discount Allowed and Discount Received accounts in the General Ledger

Receipts - Cash Book
1 question
14:01

Students must be able to:

1. Explain the use of Petty Cash as a system for effecting minor disburcements

2. Use sequentially numbered vouchers and be aware that they are an authorisation for payment

3. Explain the practice of setting a limit to the amount allowed in reimdursement per claim/voucher

4. Apply the basis of the imprest system, ie the periodic reimbursement of the (controlled) float

5. Record the incidental receipts of money into petty cash, other than the periodic reimbusement of the float

6. Balance the Petty Cash Book and prepare the book-keeping entries relating to the reimbursement of the float as well as in respect of any adjustment of the float

7. Analyse Petty Cash outlay, the totalling of the analysis columns, and post these totals as required to appropriate ledger accounts

8. Explain the dual role of the Petty Cash Book as a book of prime entry and an integral part of the double-entry record

18:00

Students must be able to:

1. Prepare Purchases, Sales, Returns Outwards and Returns Inwards Day Books

2. Show the alternative names used for these various day books, ie purchases returns and sales returns

3. Record individual transactions in the day books

4. Make individual postings from the day books to personal accounts

5. Make postings of period day book totals to the Purchases, Sales and Returns accounts in the General Ledger

21:46

Students must be able to:

1. Explain that the journal is one of the Books of Original Entry

2. Explain the advantages of having a Journal, as a support to the double-entry system, and its main uses

3. Record journal entries, in standard format, covering: a) the purchase and sale on credit of Fixed Assets b) the correction of errors c) opening entries d) other non-regular transactions or adjustments

Section 3: Errors, checks and reconciliation
25:21

Students must be able to:

1. Explain the difference between errors which affect agreement of the Trial Balance and those errors which do not affect such agreement

2. Identify those errors that do not affect agreement of the Trial Balance; and types of such errors

3. Select the relevant type of error from data provided

4. Record adjusting journal entries

5. Show the effect of errors and/or the effect of the correction of errors both in principle as well as by calculation on: a) the Trial Balance b) Gross Profit c) Net Profit d) the Balance Sheet

20:34

Students must be able to:

1. Explain the need for periodic reconciliation between the balance in the Bank Statement and the balance in the Cash Book (Bank Current Account)

2. Record the updating of the Cash Book (bank column) with as yet non-recorded items which are revealed in the Bank Statement

3. Explain the terms : a) unpresented cheques (or cheques drawn, not yet presented) b) cheques paid in (lodged), not yet credited

4. Prepare a statement reconciling the balance in the Cash Book (Bank Current account) with that shown in the Bank Statement, in respect of items still causing a difference

15:34

Students must be able to:

1. Explain that Control accounts are an independent check on the sales and purchases ledgers

2. Explain that Control accounts may be used to provide totals of debtors and creditors and locate errors

3. Identify and use the books of prime entry as sources of information for the control account entries

4. Record the following items into the relevant control accounts: a) sales and purchases b) receipts and payments c) discounts d) returns e) bad debts

97 pages

Answer book contains solutions to question found in the book

Let's Summarize
15:48
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Instructor Biography

Christos Pittis, ERP Consultant, IT/Technology/Software Enthusiast, educator

ERP Consultant for more than ten years and experience as an Entrepreneur for eight years. Microsoft Certified Professional (MCP).

Teaching Accounting for more than eight (8) years.

1. Level 2 seller on Fiverr 

2. TOP 5% of most-viewed on SlideShare (year 2014) 

3. 21,000 + students at Udemy 

4. Author of two books


He is married with two children, and lives in the UK.


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