Learn Accounting in 1 hour FREE (Material, quizzes & videos)

Learn how to document financial transactions from source documents to daybooks, ledgers, and trial balances, culminating in financial statements, and master the accounting equation asset equals capital plus liability.

Learn the pearls mnemonic to remember debit items (purchases, expenses and assets) and credit items (revenue, liabilities and capital), with drawings remaining a debit.

Learn the dead clic trick to remember debits and credits, with assets and drawings as debit items and liabilities and capital as credit items, plus notes on income and expenses.

Master double entry bookkeeping using T accounts to record debits and credits across purchases, bank and cash, sales, rent, assets, and trade receivables.

Learn to balance accounts by calculating totals on both sides, applying balance carried down and balance brought down, and identifying the balancing figure for debit or credit accounts.

Master the trial balance and its role in testing ledger accuracy using debit and credit columns. Follow the accounting cycle from source documents through double entry to financial statements.

Learn to prepare the income statement and balance sheet for a sole trader using a pro forma SPL layout, including cost of goods sold, inventories, purchases, and expenses.

Learn the balance sheet layout (sofp), classifying assets, liabilities, and capital into current and noncurrent sections, and calculating net current assets and net assets via cost and depreciation.

Discover how to prepare final accounts for a sole trader, building the income statement and balance sheet from a trial balance, including cost of goods sold and depreciation.