About
Book-keeping is always a profession where it is needed by every business. This therefore provide career opportunities to those who are interested in this area.
This free-educational Book-keeping blog provides practical book-keeping knowledge to college student looking for a little help with bookkeeping/accounting, an entrepreneur who want to learn more about how to “keep books” or someone thinking of starting your own bookkeeping business.
For ease of learning/understanding, the thrust of this book-keeping blog are as follows:-
(A)INTRODUCTION TO ACCOUNTING
In this section, you learn about:-
(1) Introduction:
- the nature and purpose of accounting
- who are the users of financial statements
- what are the qualities of good financial statements
- what are in the financial statements- Income Statement, Balance Sheet and Cash Flow Statement
(2) Grasp the meaning of Double entry system/procedure:
- The recording of transaction in double entry terms
- Introduces the fundamental elements of accounting, the accounting equation, and an accounting form balance sheet by presenting a series of transactions and shows the effect of these transactions on the assets, liabilities, and owner’s equity of a business. Extends the concept of owner’s equity to include revenue and expenses as well as capital. A series of revenue and expense transactions are analyzed and then recorded in the accounting equation.Net income and net loss are explained, and a new balance sheet is presented to show how the net income for the period would be listed in the Owner’s Equity section.
(3) Understand the concept of the accounting period or cycle
(4) A simple chart of accounts is discussed
(5) Introduces the four-column balance ledger form for the general ledger accounts, the procedures for opening accounts and posting entries from the general journal are explained.
(6) Introduces the concept of journals and the procedures for using a general journal
(7) Introduces the six-column worksheet. The readers are shown how to use the worksheet to prepare the trial balance, compute the net income or net loss, and plan the financial statements.
From step (5) to (7), the readers learn how to open general ledger accts, record transactions in the general journal, post entries to the general ledger accts, prepare a worksheet, journalize and post closing entries, and prepare a post closing trial balance.
(8) Discusses the steps that should be taken to locate errors on the trial balance and in the accounts and then proceed to learn how to correct the errors.
(9) The following accounting/bookkeeping terms and adjustments are discussed:
- Procedures for handling purchases of merchandise, freight charges, purchases returns and allowances, and purchases discounts, purchases returns and allowances The control of purchase invoices and the use of a tickler file for unpaid invoices are also discussed. Explains the procedures for journalizing and posting transactions involving sales of merchandise, sales returns and allowances, and sales tax
- Accruals & prepayments
- Wages & salaries
- Depreciation & Fixed Assets
- Provision For Bad Debts
- Practical Book-keeping entries for year end adjustments
(10) the practical aspect of recording and processing of book-keeping transaction relating specifically to below are discussed in details:-
- Sales ledger
- Purchase ledgers
- Daybooks
- Receipts & payments
- The Cash book
- Petty Cash & Imprest Float System
- Bank reconciliation
- Control accounts
Question Bank:
In this Question Bank Section, the bookkeeping/accounting questions are arranged in the following manner:-
- True Or False
- Multiple Choice Questions
- Explanation
- Worked Questions And Answers
Always remember that for accounting/bookkeeping subjects, we should not be just reading it. The commonest mistake for any accounting/bookkeeping student is to passively “read” accounting/bookkeeping instead of understanding and consistently practice it.
The motto “Practice Makes Perfect” is a key ingredient to the success of the studying of Accounting subjects.
Revisions Notes:
Included in this revision notes section, the readers will see plenty of revision notes as a last minute snapshot of all the topics on bookkeeping subjects.
Glossary Of Basic Accounting Terms
A glossary of basic accounting terms are included to complete this bookkeeping.blog
Happy Reading!
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