Category Archives: Accounting and Bookkeeping Tutorial

Chapter 5. The Balance Sheet

What is a balance sheet? A balance sheet is a financial report which provides a snapshot of a company’s financial position at any given moment in time. It does this by evaluating a list of the business’s assets, liabilities and … Continue reading

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Chapter 4. The Trading Profit and Loss Account (TPLA)

What is a trading profit and loss account? Unlike the balance sheet, which was discussed briefly in the previous chapter and which will be looked at in more detail in the following chapter, the trading profit and loss account measures … Continue reading

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Chapter 3. The Accounting Equation

3. The Accounting Equation At the heart of accounting is the ‘accounting equation’ shown below: Capital = Assets – Liabilities This equation is used to calculate the capital worth of a business. At any given moment in time, the worth … Continue reading

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Chapter 2. An overview of the Basic Principles of the Accounting System

2. An overview of the Basic Principles of the Accounting System In Chapter 1, I introduced the three main stages of accounting, the different groups interested in the information which accounting aims to provide, and the questions to which each … Continue reading

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Chapter 1. What is accounting?

1. What is accounting? A definition Accounting is the process whereby financial information is identified, recorded, classified and communicated to interested parties within a business in order to facilitate informed judgements and decisions being made by the various users of … Continue reading

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Accounting and Bookkeeping Tutorial Preface

Accounting and Bookkeeping Tutorial Preface The following written tutorial will be for those of you who would like to learn basic bookkeeping skills and to establish a good solid grasp of basic accounting principles. Before continuing, I should mention that … Continue reading

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