Bookkeeping
Learn the systematic process of recording, classifying, and organising financial transactions so that accurate financial statements can be prepared.
Course overview
Bookkeeping is the foundation of accounting. It involves recording day-to-day business transactions in a systematic manner so that the financial position of the business can be known at any time.
- Understand bookkeeping principles and the accounting equation
- Apply debit and credit rules correctly
- Record transactions in journals and subsidiary books
- Post entries to the ledger and prepare a trial balance
- Prepare bank reconciliation statements
- Handle receivables, payables, discounts, and inventory records
- Detect and correct errors, use suspense accounts
- Learn closing entries and computerized bookkeeping (including Tally)
Course chapters
Follow the chapters in order for the best learning experience.
Introduction to Bookkeeping
Understand the meaning, objectives, advantages, and importance of bookkeeping.
Bookkeeping Principles
Learn the fundamental principles that guide the recording of financial transactions.
Types of Accounts
Classify accounts into personal, real, and nominal accounts with examples.
Accounting Equation
Understand Assets = Liabilities + Capital and how transactions affect the equation.
Debit and Credit Rules
Master the golden rules of debit and credit for different types of accounts.
Source Documents and Vouchers
Identify invoices, receipts, bills, and vouchers that form the basis of entries.
Journal Entries
Learn how to record transactions in the journal with correct debit and credit.
Subsidiary Books
Understand the purpose and types of special journals used in bookkeeping.
Purchases Book
Record credit purchases of goods in the purchases book.
Sales Book
Record credit sales of goods in the sales book.
Purchase Returns Book
Record goods returned to suppliers in the purchase returns book.
Sales Returns Book
Record goods returned by customers in the sales returns book.
Cash Book
Maintain single, double, and triple column cash books for cash and bank transactions.
Petty Cash Book
Record small day-to-day expenses using the imprest system.
Bank Book
Record bank-related transactions and understand bank statements.
Ledger Posting
Post journal and subsidiary book entries into the respective ledger accounts.
Ledger Balancing
Balance ledger accounts and find the closing balances of accounts.
Trial Balance
Prepare a trial balance to check the arithmetic accuracy of the books.
Bank Reconciliation Statement
Reconcile the cash book balance with the bank statement balance.
Cash and Credit Transactions
Distinguish between cash and credit transactions and record them correctly.
Accounts Receivable
Record and manage amounts owed by customers (debtors).
Accounts Payable
Record and manage amounts owed to suppliers (creditors).
Discounts and Trade Allowances
Record trade discount, cash discount, and other allowances.
Inventory Records
Maintain stock records and record purchases and sales of inventory.
Depreciation Recording
Record depreciation of fixed assets using different methods.
Accruals and Prepayments
Record outstanding expenses, prepaid expenses, accrued income, and income received in advance.
Error Detection and Correction
Identify different types of errors and learn how to correct them.
Suspense Account
Use a suspense account to temporarily balance the trial balance when errors exist.
Closing Entries
Close temporary accounts at the end of the accounting period.
Computerized Bookkeeping
Understand the advantages and process of maintaining books using software.
Tally Prime Bookkeeping
Learn the basics of recording transactions using Tally Prime software.
Bookkeeping Practice Exercises
Practise complete bookkeeping cycles with realistic transaction exercises.
Recommended learning approach
Start with the basic principles and accounting equation, then move to recording transactions, posting to ledger, preparing trial balance, and finally handling adjustments and computerized systems.