Abacus Auto Balance Accounting System

Apply the principles of double entry bookkeeping from a sole proprietor's perspective, keeping personal and business affairs separate, treating capital as a proprietor's personal asset yet a business liability.

Explore the concept of double entry accounting, where every transaction has a debit (receiving) and a credit (giving) across accounts, forming the fundamental basis of bookkeeping.

Identify accounts as descriptive headings under which transactions of identical nature are recorded and accumulated, such as sales, purchases of goods for resale, and salaries, in the business ledger.

Learn the recording of transactions using double-entry conventions, with debits on the left and credits on the right, including plus, minus, and bracket notations for purchases, sales, and creditors.

Illustrates debit and credit transactions in T accounts through customer and supplier entries. Uses cross-references such as sales, purchases, and bank to show how accounts reflect outcomes.

Explain recording conventions and the trial balance by showing that every transaction requires equal debits and credits, and that total debits equal total credits, producing a zero net balance.

Explore account groupings as broad headings for recording transactions. Provide examples: fixed assets, current assets, purchases, and expenses; current liabilities, sales, and income are created accounts.

Explore how the trial balance informs the three main accounting statements, trading accounts, profit and loss accounts, and balance sheets, through debit and credit accounts, assets, liabilities, and expenses.

Examine financial statements, including trading accounts, profit and loss accounts, and balance sheets, and learn to compute gross profit, cost of sales, and margins with markup formulas.