Bookkeeping and Accounting

Learn how double entry bookkeeping balances assets with liabilities and equity, using Coca-Cola's annual report to illustrate the income statement and balance sheet.

Explore the three account types—personal, real, and income/expenses—with examples of natural and artificial persons, assets, liabilities, and equity. Apply debit and credit rules to practice transactions.

Access the three downloadable resources and use the practical transactions to record Mr Vogues' mobile phone trading in Excel, then prepare the profit and loss and balance sheet.

Launch a local retail business by Mr. Work and Mr. Start with initial capital on January 1, 2020. Record the investment by debiting the bank and crediting owners' equity.

Learn to account for purchases and purchase returns, including cash and credit purchases, sales tax effects, and the corresponding journal entries.

Learn to record sales and sales returns with cash and credit transactions, including sales tax and receivables, in fundamental bookkeeping.

Distinguish capital expenditure, with long-term effect and higher revenue-generating capacity, from revenue expenditure used for day-to-day costs; apply to machinery, furniture, insurance, and capital receipts vs revenue receipts.

Explore general transaction concepts beyond sales and purchases in bookkeeping and accounting, including wages, accruals, and provisions. Learn recording methods for expenses, depreciation, advances, and asset purchases.

Value inventory using FIFO, LIFO, and weighted-average methods, calculate closing stock, and compare outcomes through practical phone examples.

Explore depreciation by allocating a laptop’s cost over its three-year useful life using the straight-line method, and record monthly depreciation via journal entries.

Explore the bank reconciliation statement by comparing company books with bank statements, identifying timing differences from outstanding checks, deposits in transit, and bank charges, and recording the necessary journal entries.

Learn how to post journal transactions to the general ledger, record debits and credits, and balance accounts to generate the trial balance in bookkeeping and accounting.

Understand how the trial balance totals all ledger balances on a date and compares debit and credit to verify accuracy for preparing balance sheet and profit and loss account.

Prepare the trial balance by summarizing balances from the general ledger and linking journal entries to the ledger, including cash, purchases, sales tax, depreciation, and expenses, ensuring totals balance.

Prepare a profit and loss from the trade balance, detailing cost of goods, gross margin, depreciation, and finance costs to assess net profit or loss.

Outline the preparation of a balance sheet for Mr. Books by detailing equity, liabilities, and assets, including losses, provisions, cash and bank balances, inventories, and trade receivables.

Explore how the cash flow statement classifies cash into operating, investing, and financing activities, revealing sources and uses of cash and the difference between profit and cash flow.