Mastering Bookkeeping - The Full Circle

What is considered useful financial information? Let's take a look!

Who are the users of financial information, and what do they need the information?

What is the accounting cycle, and what roles do the bookkeeper and accountant play within it? Let's explore!

What are transactions, and what type of transactions can occur within a business? Let's explore!

What are source documents, and why are they important? We further briefly look at what VAT is, and who administers the collection of VAT in South Africa.

How do we determine whether VAT should be applied to the goods or services we provide, and what is the method for calculating it? This section examines taxable supplies.

We also provide a brief overview of mark-up and gross profit percentages, including the methods used to calculate them.

Not all goods and services are taxable supplies. This section examines non-taxable supplies.

Let's explore VAT in more detail, including the calculation of a VAT due to, or refundable by, SARS. We also discuss who VAT vendors are, and when a person is required to register as a VAT vendor.

What is an invoice, an abridged invoice, and a full tax invoice, and under what circumstances is each used? We begin by examining our first source document—the invoice—in detail.

What is a credit note, and under which circumstances is it issued? Let's discuss this topic, and look at an example of a credit note.

Let us explore the various methods of payment and the corresponding source documents associated with each.

Let us examine the internal documents used by businesses for control purposes, specifically the petty cash voucher and the journal voucher.

What are customer accounts, and why are they essential for accurate record-keeping? Let's discuss the topic!

Let us examine the accounting equation and its elements, along with the definition and recognition criteria associated with each element.

What is double-entry accounting, and what role do T-accounts play within it? Let's explore these concepts!

What is the accrual concept, and in what way does its application enhance the financial record-keeping of a business? Let's explore!

At what value should inventory be presented on the Statement of Financial Position? Which expenses may be included in this valuation? What inventory control methods are available for monitoring inventory levels, and which general ledger accounts are affected when these methods are applied? We answer all of these questions in Lecture 18.

What constitutes property, plant, and equipment, and at what value should these assets be reported on the Statement of Financial Position? These questions are addressed in Lecture 19, where we also examine the various methods of depreciation and provide illustrative examples of how depreciation is calculated.

Having now covered several fundamental concepts essential for recording transactions, we are prepared to examine the structure and functions of the subsidiary journals.

We will now examine the purpose and structure of subsidiary ledgers, as well as the procedure for totaling subsidiary journal batches.

In Lecture 22, we will explore the process of transferring subsidiary journal totals to both the general ledger and the respective subsidiary ledger accounts.

Lecture 23 offers an overview of monthly reconciliations and provides a brief explanation of the bank reconciliation process.

Lecture 24 offers a brief overview of the reconciliation procedures for petty cash and trade payables.

Lecture 25 offers a brief overview of the reconciliation procedures for trade receivables and VAT.

In Lecture 26, we will explore the process of balancing general ledger accounts.

We will now examine the structure of the trial balance, transfer the balances from the general ledger accounts to the trial balance, and discuss potential reasons for any discrepancies that may led to the trial balance not balancing.

We will now provide an introduction to interim financial statements and proceed to transfer the balances from the balance sheet account section of the trial balance to the Statement of Financial Position.

We will now examine the format of the Statement of Profit or Loss and Other Comprehensive Income, and transfer the balances from the nominal accounts section of the trial balance to the statement.

In Lecture 30, we will prepare the Statement of Changes in Owners' Equity.

In Lecture 31, we will explore the Statement of Cash Flows and its structure.

In Lecture 32, we will prepare the Statement of Cash Flows, covering both the direct and indirect methods.

Let us now examine the appearance of the pre-adjustment trial balance.

In Lecture 34, we provide an introduction to adjusting journal entries and examine the process of recording adjustments related to accrued income, prepaid expenses, income received in advance, accrued expenses, and depreciation.

In Lecture 35, we examine the process for recording adjustments related to the expensing of assets and the recognition of doubtful debts.

Let us now review the appearance of the trial balance after processing the adjusting entries.

In Lecture 37, we address the recording of closing entries to finalize the accounts for the financial year.

Let us now review the appearance of the trial balance after processing the closing entries.

In Lecture 39, we provide an introduction to annual financial statements and proceed to prepare the annual Statement of Financial Position as well as the annual Statement of Profit or Loss and Other Comprehensive Income.

In Lecture 40, we prepare the annual Statement of Changes in Equity and the annual Statement of Cash Flows.

What are the notes to the annual financial statements, and why are they included?