Accounting 101: Guide to Business Accounting

Why to learn Accountancy

• To establish your own business, you need to know some basic accounting principles in order to communicate effectively with investors, suppliers and customers

• To be better at negotiations

• To know the best price of selling. Learn how to estimate the break-even point and at which point you can reduce the price

The aim of this course is to enable students to develop:

1. an understanding of the basic principles underlying the recording of business transactions

2. The ability to maintain the books of, and prepare final accounts for, sole traders

The course is suitable for canditates who work or wish to work in areas of business that will involve the recording of financial transactions. All businesses require accurate accounting records that are maintained on a regular basis. Consequently, there is a demand for employees who possess this skills.

Syllabus topics:

1. The Accounting Equation and the basis of double-entry book-keeping

2. Recording transactions through double entry

3. Balancing accounts

4. Purchases/Sales/Returns

5. The Ledger: its subdivision

6. Day Books

7. Bank facilities/methods of payment or receipt of money

8. Cash Book and cash discount

9. Bank reconciliation

10. Petty Cash Book and the Imprest System

11. Trial Balance

12. Adjusting for accruals and prepayments in the final accounts

13. Depreciation of fixed assets

14. The entries relating to bad debts

15. The Journal

16. Capital and revenue expenditure

17. Errors in the accounts and their correction

18. Effect of Profit (or Loss) and drawings upon capital

19. Trading and Profit and Loss Accounts

20. The Balance Sheet

21. Control Accounts “ an introduction

Assessment Objectives

The course will assess the candidate's ability to demonstrate:

ï an understanding of the Accounting Equation and the basis of double-entry book- keeping

 how to prepare journal entries and ledger accounts by using the double entry system

 how to prepare prime entry records for purchases, sales, returns and cash

 how to prepare journal entries

 how to prepare a trial balance and the final accounts for sole traders

 an understanding of banking facilities and the operation of the cash book

 how to prepare a bank reconciliation statement

 how to make adjustments for accruals and prepayments in the final accounts

 an understandinfg of the entries necessary for the depreciation of fixed assets

 how to make entries relating to the writing off of bad debts

 an understanding of the distinction between capital and revenue expenditure

 how to correct errors in the accounts of sole traders

ï an understanding of the use of control accounts as a check on the sales and purchases ledger

Skills Assessed

Candidates will need to show that they can:

add, subtract, divide and multiply, calculate and use percentages

prepare journal entries and ledger accounts

present final accounts for sole traders

What i offer:

Recorded lessons

Teacher's powerpoint slides

Book

Solutions

Past Papers