Bookkeeping - Introduction

There are 10 lessons as follows:

1. Introduction – Nature and Function of Accounting for Service Firms

2. The Balance Sheet

3. Analysing and Designing Accounting Systems

4. Cash Receipts and Cash Payments Journal

5. The General Journal

6. Profit and Loss Statements

7. Depreciation of Non-current Assets

8. Profit Determination and Balance Day Adjustments

9. Cash Control: Bank Reconciliation and Petty Cash

10. Cash Control: Budgeting

• Explain types of balance sheets, assets, liabilities.
• Design an accounting process.
• Utilise ledgers, transaction records, trial balances.
• Define what a business’s liquidity is and the two calculations used to measure it.
• Prepare a credit fees journal
• Prepare a credit purchase journal
• Post a fees journal to the general ledger
• Post a purchases journal to the general ledger
• Describe the VAT

Here are just some of the things you will be doing:

• Aspects of VAT including registration input and output tax, rates of VAT and how to calculate VAT.
• What is an accounting standard?
• What is an accounting convention?
• Explain the link between the concept of reliability and the principal of verifiability.
• Explain the link between the going concern assumption and accounting period convention.
• Explain the accounting entity convention.
• State the balance sheet equation in two different forms.
• Define the terms, assets, liabilities and proprietorship
• What is the difference between a T-form balance sheet and a narrative form balance sheet?
• Define the difference between a ledger & journal?
• Define source documents?
• Explain what a chart of accounts is and why is it used?
• What journals are used in an accounting system?
• Prepare a list of transactions in ledger accounts on double entry principles.
• Explain the purpose of the general journal for a business which uses special journals.
• Describe the benefits achieved by a business through the introduction of multi-column journals.
• What is the purpose of the sundries column in a cash receipts journal?
• What is the difference between credit fees and credit purchases?
• Describe the key sections of a general journal
• State four transactions that would be recorded in a general journal.
• What is a bad debt? What is the role of the general journal in relation to bad debts?
• What is the purpose of the profit and loss account
• What is a current account?
• Outline the basic functions of a Profit and Loss Statement.
• How is gross margin calculated for a service firm?
• What is meant by functional classification and what are the benefits?
• What is depreciation?
• Outline the differences between the cash and accrual methods of determining profit.
• Explain the role played by a ten column worksheet.
• State and describe five different ways of controlling cash receipts.
• What is bank reconciliation?
• Describe five events which may cause a balance on a bank statement to be different from that shown in a firm’s books.
• What details should be recorded in a petty cash book?
• State and describe four different types of budgets the management of a service firm may prepare.
• What is a cash budget and what is its purpose?
• What is a budget performance report and what is its purpose?