Basics 4 min read
How to create Balance Sheet
The Balance Sheet attempts to show how much the business is worth. It does this by illustrating the value of the business’s…
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Basics 5 min read
How to produce a Profit and Loss Statement
A Profit and Loss Statement illustrates how much profit you made in any given period, usually it is 1 year.…
Basics 3 min read
How to prepare trial balance
The Trial Balance is, as the name suggests, a table where we lay out all our debit accounts and all…
Basics 6 min read
How to calculate Depreciation (Balance Day Adjustment)
Earlier we discussed the term capital expenditure. Let’s explore this a little further. Capital expenditure is when you purchase an asset. It…
Basics 6 min read
What is Ledger & How to create One
We’ve just processed all our transactions into journals. The next step in the accounting process is entering these journal entries into ledgers.…
Basics 7 min read
How to do a Journal Entry
OK soldiers. Time to do some real accounting! Everything we do from this point on will be stuff that real…
Basics 5 min read
Basic Accounting Transactions
In this lesson, we are going to learn how basic transactions move through the accounting equation. What we need to…
Basics 4 min read
Introducing The Complete Accounting Equation
Remember in Lesson 2 we learned the basic form of the accounting equation as: Assets = Liabilities + Owners Equity…
Basics 4 min read
What is Revenue, Expense and Drawing
In Lesson 2 we defined the terms Asset and Liability. In this lesson we will complete the last of our…
Basics 7 min read
The Accounting Equation
The accounting equation! Probably sounds intimidating. Don’t worry, it really is as simple as ABC. Here’s what it looks like.…
Basics 6 min read
What are Assets and Liabilities in Accounting
The words “asset” and “liability” are two very common words in accounting. Some people simply say an asset is something…
Basics 3 min read
An Overview of Contracts and Why They are Important to Business and Society
Contracts govern all transactions whether they are between firms or between firms and private individuals. Indeed, in most of the…
