Boo Keeping

8/9/2019 Boo Keeping

1/15

So, you want to learnBookkeeping!by Bean Counter's Dave Marshall

Lesson 5The General Ledger and Journals

IntroductionLesson

1Lesson

2Lesson

3Lesson

4Lesson

5Lesson

6Lesson

7

Bean Counter
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General Ledger

In Lesson 4 we used T-Accounts to record the transactions for ABC, the lawn owin! !u"s# $hat "ou didn%t

&now at the tie is that we were actuall" recordin! transactions in 'eneral Led!er Accounts# A 'eneral Led!eis (ust a foral set of T-Accounts# )ach account that we want to trac& and &ee* u* with has a se*arate *a!e o

*a!es aintained in a record +oo& called the 'eneral Led!er# The +oo& is or!anied into a(or sections (ust l

the Accountin! )uation that we studied in *re.ious lessons# /o "ou ha.e an" idea what these sections i!h+e 0 Coe on this uestion is not that hard# The !eneral led!er%s a(or sections are Assets, Lia+ilities, wne

)uit", e.enues, )*enses, and /raws#

or each ite account in our 'eneral Led!er, we record the increases and decreases for a *eriod usuall" a

onth and calculate its endin! +alance# The endin! +alance of the account is easil" deterined +" addin! thincreases and su+tractin! the decreases fro the account%s +e!innin! *eriod +alance#

Ending Account Balance = Beginning Balance + Increases - Decreases

If "ou noticed in " a+o.e euation I used the ters increases and decreases# If "ou also recall in our

discussion a+out de+its and credits in Lesson 3, I tried to stress the fact that when a**lied to +oo&&ee*in!

these ters need to +e associated with the types of accounts#

$e also should &now +" now that the t"*e of accounts ha.e a noral +alance that is either a de+it or credit+alance# o actuall" the a+o.e euation is stated in two wa"s# The euation is stated one wa" for de+it +alan

accounts, and another wa" for credit +alance accounts#

8sin! our +oo&&ee*in! ters de+its and credits, we coe u* with the followin! euations9

Debit Balance Accounts Equation

)ndin! Account Balance for :oral /e+it Balance Accounts ; Be!innin! Balance < /e+itsIncreases -

Credits/ecreases

redit Balance Accounts Equation

)ndin! Account Balance for :oral Credit Balance Accounts ; Be!innin! Balance < CreditsIncreases -/e+its/ecreases

i*l" stated a 'eneral Led!er is (ust a +oo& containin! the su!!ari"ed financial transactions and +alanceof the accountsfor all of a +usiness%s assets, lia+ilities, euit", re.enue, and e*ense accounts#

ne other record that !oes hand in hand with the !eneral led!er and that we%.e touched on +efore and used the *rior lesson is #he hart $f Accounts# ee+er The Chart f Accounts is si*l" a listin! of all the

accounts in the !eneral led!er that contains the account%s nae, a +rief descri*tion of the account, and usual

an account nu+er assi!ned to aid in recordin! and trac&in! transactions#

It%s chief *ur*ose is to ser.e as an aid reference for loo&in! u* accounts and their associated accountnu+ers#

or this lesson, we e*anded our chart of accounts +" addin! account nu+ers and !rou*ed the nu+ers intran!es that re*resent the a(or t"*e of accounts#

hart $f Accounts %or AB &owing
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3/15

So, you want to learn

Bookkeeping!by Bean Counter's Dave Marshall

Lesson 6Financial Statements

Introduction Lesson 1 Lesson 2 Lesson 3 Lesson 4 Lesson 5 Lesson 6 Lesson 7

Bean Counter
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The o+(ecti.e of this lesson is not so uch a how to doit= +ut, to infor, introduce, and a&e "ou aware of

the +asic financial stateents#

Let%s start this lesson +" re.iewin! a few definitions#

%inancial 'tate!entsare suar" accountin! re*orts *re*ared *eriodicall" to infor the owner, creditors

and other interested *arties as to the financial condition and o*eratin! results of the +usiness# The four +asicfinancial stateents or re*orts are9

Balance 'heet-The financial stateent which shows the aount and nature of +usiness assets, lia+ilities, a

owner%s euit" as of a s*ecific *oint in tie# It is also &nown as a tateent f inancial >osition or atateent f inancial Condition#

Inco!e 'tate!ent-The financial stateent that suaries re.enues and e*enses for a s*ecific *eriod oftie, usuall" a onth or a "ear# This stateent is also called a >rofit and Loss tateent or an *eratin!

tateent#

apital 'tate!ent-The financial re*ort that suaries all the chan!es in owner%s euit" that occurred

durin! a s*ecific *eriod#

'tate!ent of hanges in %inancial (osition-The financial stateent that re*orts the sources and uses of

cash or wor&in! ca*ital for a s*ecific *eriod of tie, norall" a "ear#

The Balance heet

A Balance heet is si*l" a *icture of a +usiness at a s*ecific *oint in tie, usuall" theend of the onth or "ear# B" anal"in! and re.iewin! this financial stateent the

current financial ?health? of a +usiness can +e deterined# The +alance sheet is deri.edfro our accountin! euation and is a for!al representation of our equation

Assets ; Lia+ilities < wner%s )uit"#

If "ou recall, in an earlier lesson we learned that this euation is also called the Balance

heet )uation#

The cate!ories and forat of the Balance heet are +ased on what are called 'enerall" Acce*ted Accountin!>rinci*les 'AA># These *rinci*les are the rules esta+lished so that e.er" +usiness *re*ares their financial

stateents the sae wa"#

Assets

oral /efinition9The *ro*erties used in the o*eration or in.estent acti.ities of a +usiness#

Inforal /efinition9All the !ood stuff a +usiness has an"thin! with .alue# The !oodies#

Additional )*lanation9 The !ood stuff includes tan!i+le and intan!i+le stuff# Tan!i+le stuff "ou can *h"sicalsee and touch such as .ehicles, eui*ent and +uildin!s# Intan!i+le stuff is li&e *ieces of *a*er sales

in.oices re*resentin! loans to "our custoers where the" *roise to *a" "ou later for "our ser.ices or*roduct# )a*les of assets that an" indi.iduals ha.e are cars, houses, +oats, furniture, T@%s, and

a**liances# oe ea*les of +usiness t"*e assets are cash, accounts recei.a+le, notes recei.a+le, in.entorland, and eui*ent#

Assets are listed +ased on how uic&l" the" can +e con.erted into cash which is called liuidit"# In other
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5/15

So, you want to learnBookkeeping!by Bean Counter's Dave Marshall

Lesson e"iew #$ %a&or 'oncepts

Introduction Lesson 1 Lesson 2 Lesson 3 Lesson 4 Lesson 5 Lesson 6 Lesson 7

Bean Counter

ee+er e 0 eah, it%s e /a.e# It%s not often that I !et " *icture in a *u+lication twice+ut when "ou%re the *u+lisher "ou ha.e a lot of leewa"# I started out with "ou so I !uess it%s

onl" fittin! and *ro*er that I also end with "ou#

f course +usinesses ha.e an" ore than the ten si*le transactions that I used in " ea*le of ABCowin!# >ro+a+l" DE of a +oo&&ee*er%s tie is s*ent recordin! and suariin! a +usiness%s financial

transactions# I intentionall" liited the transactions used in " *rior lessons in order to focus on the +roadconce*ts# " *ur*ose which I ho*e I acco*lished was to *re*are "ou with a stron! foundation that "ou ca

continue to +uild on#

)hat )e o*ered

Let%s e.iew the *ath that !ot us here#

TheIntroductiondiscussed the t"*es of +usiness or!aniations, t"*es of +usinessacti.ities, users of financial inforation, +oo&&ee*in! s"stes, accountin! rules, and

the cash and accrual +asis of accountin!#

ighlights,

Booeepingis the *rocess of recordin! and classif"in! +usiness financial transactions acti.ities# In si*l

lan!ua!e-aintainin! the records of the financial acti.ities of a +usiness or an indi.idual# Boo&&ee*in!%so+(ecti.e is si*l" to record and suarie financial transactions into a usa+le for that *ro.ides financial

inforation a+out a +usiness or an indi.idual#

#ypes $f Business $rgani"ation

ne of the first decisions that a *ersons needs to a&e is how the co*an" should +e structured# The four+asic le!al fors of ownershi* for sall +usinesses are a ole >ro*rietorshi*, >artnershi*, Cor*oration, and

Liited Lia+ilit" Co*an"# There are ad.anta!es and disad.anta!es as well as incoe ta raificationsassociated with each t"*e of or!aniation# $e aren%t !oin! to del.e in to this area +ut a +rief descri*tion of th
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different t"*esof or!aniation and what the" are is needed#

'ole (roprietorshipost sall +usiness start out as sole *ro*rietorshi*s# These firs are owned +" one *erson who is norall"

acti.e in runnin! and ana!in! the +usiness#

(artnership

A *artnershi* is two or ore *eo*le who share the ownershi* of a sin!le +usiness# In order to a.oidisunderstandin!s a+out how *rofitsFlosses are shared , who%s res*onsi+le for what, and other ana!eent

ownershi*, ando*eratin! decisions the *artners norall" ha.e a foral le!al *artnershi* a!reeent#

orporation

A cor*oration is an or!aniation that is ade u* of an" owners who norall" are not acti.e in the decisiona&in! and o*erations of the +usiness# These owners are called shareholders# Their ownershi* interest is

re*resented +"certificates of ownershi* stoc& issued +" the cor*oration#

Li!ited Liability o!pany .LL/

The LLC is a relati.el" new t"*e of +usiness structure that co+ines the +enefits of a *artnershi* andcor*oration#

#ypes $f Booeeping 'yste!s

'ingle Entry

$ith the sin!le-entr" s"ste, "ou record a dail" and a onthl" suar" of +usiness incoe, and a onthl"suar" of +usiness e*enses# in!le-entr" is not a co*lete accountin! s"ste, +ut it shows incoe and

e*enses in sufficient detail for ta *ur*oses# This s"ste focuses on the +usiness% *rofit and loss stateentand not on its +alance sheet# The sin!le entr" s"ste is an ?inforal? record &ee*in! s"ste# $hile the sin!

entr" s"ste a" +e acce*ta+le for ta *ur*oses, it does not pro*idea +usiness with all the financialinforation needed to adequately reportthe financial affairs of a +usiness#

Double Entry 'yste!

The dou+le-entr" s"ste has +uilt-in chec&s and +alances and is ore accurate than sin!le-entr" s"ste# Thdou+le-entr" s"ste is self-+alancin!# ince all +usiness transactions consist of an echan!e of one thin! for

another, dou+le-entr" +oo&&ee*in! is used to show this two-fold effect# This s"ste is a co!plete

accounting syste!and focuses on the incoe stateent and +alance sheet#

ash Basis0Accrual Basis of Accounting

Another decision faced +" a new +usiness is what accountin!F+oo&&ee*in! ethod the" are !oin! to use totrac& their re.enue and e*enses# If in.entories are a a(or *art of the +usiness, the decision is ade for th

+usiness owner +" the Internal e.enue er.ice I and the +usiness is reuired to use the accrual ethoof accountin!#

The ash Basisreco!nies re.enues earnin!s in the *eriod the cash is recei.ed and e*enses in the *eriodwhen the cash *a"ents are ade# The Accrual Basis records incoe in the *eriod earned and all e*ense

in the *eriod incurred#
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The followin! are soe of the 1ules used to 2play2 the Accounting 2Ga!e29

Accrual Conce*t

e.enue ealiation Conce*t

atchin! Conce*t

Accountin! >eriod Conce*t

one" easureent Conce*t

Business )ntit" Conce*t

'oin! Concern Conce*t

Cost Conce*t

Conser.atis Conce*t

Consistenc" Conce*t

Co*ara+le

aterialit" Conce*t

Cost-Benefit Con.ention

Industr" >ractices Con.ention

Lesson 3#he Booeeping Languageintroduced "ou to soe of the terinolo!" anddefinitions used in the accountin! and +oo&&ee*in! lan!ua!e#

ighlights,

&a4or #ype of Accounts,

Assets

oral /efinition9The *ro*erties used in the o*eration or in.estent acti.ities of a +usiness#

Inforal /efinition9All the !ood stuff a +usiness has an"thin! with .alue# The !oodies#

Additional )*lanation9 The !ood stuff includes tan!i+le and intan!i+le stuff# Tan!i+le stuff "ou can *h"sicalsee and touch such as .ehicles, eui*ent and +uildin!s# Intan!i+le stuff is li&e *ieces of *a*er sales

in.oices re*resentin! loans to "our custoers where the" *roise to *a" "ou later for "our ser.ices or*roduct# )a*les of assets that an" indi.iduals ha.e are cars, houses, +oats, furniture, T@%s, and

a**liances# oe ea*les of +usiness t"*e assets are cash, accounts recei.a+le, notes recei.a+le, in.entorland, and eui*ent#

Liabilities

oral /efinition9Clais +" creditors to the *ro*ert" assets of a +usiness until the" are *aid#

Inforal /efinition9ther%s clais to the +usiness%s !ood stuff# Aounts the +usiness owes to others#

Additional )*lanation9 8suall" one of a +usiness%s +i!!est lia+ilities ho*efull" the" are not *ast due is to

su**liers where a +usiness has +ou!ht !oods and ser.ices and char!ed the# This is siilar to us !oin! outand +u"in! a T@ and char!in! it on our credit card# ur credit card +ill is a lia+ilit"# Another !ood *ersonal

ea*le is a hoe ort!a!e# @er" few *eo*le actuall" own their own hoe# The +an& has a clai a!ainst thhoe which is called a ort!a!e# This ort!a!e is another ea*le of a *ersonal lia+ilit"# oe ea*les o

+usiness lia+ilities are accounts *a"a+le, notes *a"a+le, and ort!a!es *a"a+le#

$wner5s Equityalso called $wner5s apital

o!!ent,Both ters a" +e used interchan!ea+l"# In " tutorial lessons, I a"refer to +oth ters or (ususe one or the other#

oral /efinition9The owner%s ri!hts to the *ro*ert" assets of the +usiness= also called *ro*rietorshi* and

net worth#

Inforal /efinition9$hat the +usiness owes the owner# The !ood stuff left for the owner assuin! all lia+ilitie
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aounts owed ha.e +een *aid#

Additional )*lanation9wner%s )uit" Ca*ital re*resents the owner%s clai to the !ood stuff assets# ost*eo*le are failiar with the ter euit" +ecause it is so often used with lenders wantin! to loan indi.iduals

one" +ased on their hoe euit"# Goe euit" can +e thou!ht of as the aount of one" an owner wouldrecei.e if heFshe sold their house and *aid off an" ort!a!e loan on the *ro*ert"#

1e*enue .Inco!e/6 E7penses6 In*est!ent6 and Drawse.enues, e*enses, in.estent, and draws are su+ cate!ories of owner%s euit" ca*ital#

Thin& of owner%s euit" as a o naed Ca*ital with four children to &ee* u* with I &nowshe%s onl" !ot one clin!in! to her le! +ut she left )*ense, In.estent, and /raws at hoe#

The &ids are naed e.enue, )*ense, In.estent, and /raws and each &id has one (o+ thatthe" are res*onsi+le for in order to earn their allowance# 8id 1e*enue is res*onsi+le for

&ee*in! trac&of increases in owner%s euit" a Ca*ital and 8id E7penseis res*onsi+le for&ee*in! trac&of decreases in owner%s euit" a Ca*ital resultin! fro +usiness

o*erations# 8id Draws has the (o+ of &ee*in! u* with decreases in owner%s euit" a Ca*italresultin! fro owner withdrawals for li.in! e*enses and other *ersonal e*enses# 8id

In*est!enthas the (o+ of &ee*in! u* with increases in owner%s euit" a Ca*ital resultin!fro additional aounts in.ested in the +usiness#

1e*enue also called Inco!eoral /efinition9The !ross increase in owner%s euit" ca*ital resultin! fro the o*erations and other

acti.ities of the +usiness#

Inforal /efinition9Aounts a +usiness earns +" sellin! ser.ices and *roducts# Aounts +illed to custoersfor ser.ices andFor *roducts#

Additional )*lanation9Indi.iduals can +est relate +" thin&in! of re.enue as their earnin!sFwa!es the" recei.fro their (o+# ost +usiness re.enue results fro sellin! their *roducts andFor ser.ices#

E7pense also called ostoral /efinition9/ecrease in owner%s euit" ca*ital resultin! fro the cost of !oods, fied assets, and

ser.ices and su**lies consued in the o*erations of a +usiness#

Inforal /efinition9The costs of doin! +usiness# The stuff we used and had to *a" for or char!e to run our

+usiness#

Additional )*lanation9oe ea*les of *ersonal e*enses that ost indi.iduals are failiar with are

utilities, *hone, clothin!, food, !asoline, and re*airs# oe ea*les of +usiness e*enses are office su**liesalaries H wa!es, ad.ertisin!, +uildin! rental, and utilities#

$wner5s In*est!entsoral /efinition9 Increase in owner%s euit" ca*ital resultin! fro additional in.estents of cash andFor

other *ro*ert" ade +" the owner#

Inforal definition9 Additional aounts, either cash or other *ro*ert", that the owner *uts in his +usiness#

Additional )*lanation9Althou!h these aounts can +e &e*t u* with as ase*arateite, the" are usuall"

recorded directl" inthe wner%s Ca*ital Account# In other words, iediatel" *ut into a )uit"%s *urse#
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$wner5s Drawing

oral /efinition9 /ecrease in owner%s euit" ca*ital resultin! fro withdrawals ade +" the owner#

Inforal definition9 Aounts the owner withdraws fro his +usiness for li.in! and *ersonal e*enses#

Additional )*lanation9The owner of a sole *ro*rietorshi* does not norall" recei.e a ?foral? *a" chec& frothe +usiness, +ut (ust li&e ost of the rest of us needs one" to *a" for his house, car, utilities, and !rocerie

An owner%s draw is used in order for the owner to recei.e one" or other ?!oodies? fro his +usiness to ta&ecare of his *ersonal +ills#

Lesson 9 (roperty and (roperty 1ightse*lained >ro*ert" H >ro*ert" i!hts, theAccountin! )uation, dou+le entr" +oo&&ee*in!, and how +usiness transactions affect the euation#

ighlights,

A$:;#I;G E>)T;>>)T I'GTor the e*anded .ersion

A)T;LIABILITI) < $:)% )8ITand lastl" the full" e*anded .ersion Lesson 3

A)T ; LIABILITI) < B)'I::I:' $:)% )8IT ):) -/A$

ee+er o )uit" and Ger Kids and due to ?o? )uit"%s other s*ecial res*onsi+ilities$:)% )8IT e*anded +ecoes

urrent $wner5s Equity .apital/ = Beginning $wner5s Equity .apital/ + $wner5s

In*est!ents + 1e*enues - E7penses - Draws

wner In.estents Increase wner%s )uit"

e.enues Increase wner%s )uit")*enses /ecrease wner%s )uit"

wner%s /raws /ecrease wner%s )uit"

Lesson Debits and reditsintroduced and e*lained /e+its and Credits and how the" affect tAccountin! )uation and are used to record +usiness transactions#

ighlights,

%or E*ery Debit #here Is A redit

Debit- an entr" aount entered on the left side colun of a (ournal or !eneral led!er account that
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increases an asset, draw or an e*ense or an entr" that decreases a lia+ilit", owner%s euit" ca*ital or

re.enue#

redit- an entr" aount entered on the ri!ht side colun of a (ournal or !eneral led!er account that

increases a lia+ilit", owner%s euit" ca*ital or re.enue, or an entr" that decreases an asset, draw, or an

e*ense#

Debit and redit EquationAssets < Draws


11/15

/e+it9 CashCredit9 ales

o n Account ale-+usiness allows the custoer tie to *a"

The +usiness getsa *roise to *a" fro their custoer and gi*esu* a *roduct or ser.ice to

their custoer#Accounts :sed,

/e+it9 Accounts ecei.a+leCredit9 ales

(urchase goods and0or ser*ices

o Cash >urchase-+usiness *a"s the su**lier at the tie of *urchase

The +usiness gets a *roduct or ser.ice fro their su**lier and gi*esu* cash or a chec& to

their su**lier#

Accounts :sed,/e+it9 )*ense or In.entor" Account

Credit9 Casho n Account >urchase-su**lier allows the +usiness tie to *a"

The +usiness getsa *roduct or ser.ice fro a su**lier and gi*esu* a *roise to *a" to their

su**lier#

Accounts :sed,/e+it9 )*ense or In.entor" AccountCredit9 Accounts >a"a+le

(ay 'upplier harge (urchases-*a" su**liers for *roducts andFor ser.ices that we *roised to

*a" for later char!e#The +usiness gets the aount of their *roise to *a" the su**lier reduced and gi*esu* cash or a

checAccounts :sed,

/e+it9 Accounts >a"a+leCredit9 Cash

1ecei*e usto!er harge (ay!ents -recei.e *a"ents fro a custoer that *roised to *a" us

later char!e sale#

The +usiness gets cash or a chec& fro their custoer and gi*esu* reduces the aount of theircustoer%s *roise to *a"#

Accounts :sed,/e+it9 Cash

Credit9 Accounts ecei.a+le

Borrow &oneyLoans The +usiness getscash or eui*ent and gi*esu* a *roise to *a"#

Accounts :sed,/e+it9 Cash or )ui*ent

Credit9 :ote >a"a+le

1epay a Loan

The +usiness gets the aount of their *roise to *a" reduced and gi*esu* cash or a chec

Accounts :sed,/e+it9 :ote >a"a+leCredit9 Cash

Draw

The +usiness gets the owner%s clai to the +usiness assets reduced and gi*esu* cash or a chec

Accounts :sed,/e+it9 wner%s /raw

Credit9 Cash
http://www.dwmbeancounter.com/tutorial/lesson06.html#FS5http://www.dwmbeancounter.com/tutorial/lesson06.html#FS6http://www.dwmbeancounter.com/tutorial/lesson06.html#FS2http://www.dwmbeancounter.com/tutorial/lesson06.html#CSBhttp://www.dwmbeancounter.com/tutorial/lesson06.html#CSWhttp://www.dwmbeancounter.com/tutorial/lesson06.html#FS7http://www.dwmbeancounter.com/tutorial/Quizzes/Intro5.htmlhttp://www.dwmbeancounter.com/tutorial/Quizzes/Intro5.htmlhttp://www.dwmbeancounter.com/tutorial/Quizzes/Intro5.htmlhttp://www.dwmbeancounter.com/tutorial/Quizzes/Intro5.htmlhttp://www.dwmbeancounter.com/tutorial/Quizzes/Intro5.htmlhttp://www.dwmbeancounter.com/tutorial/lesson06.html#FS9http://www.dwmbeancounter.com/tutorial/lesson06.html#FS8http://www.dwmbeancounter.com/tutorial/Quizzes/Intro5.htmlhttp://www.dwmbeancounter.com/tutorial/lesson04.htmlhttp://www.dwmbeancounter.com/tutorial/lesson06.htmlhttp://www.dwmbeancounter.com/tutorial/Tutorial.htmlhttp://www.dwmbeancounter.com/tutorial/lesson01.htmlhttp://www.dwmbeancounter.com/tutorial/lesson02.htmlhttp://www.dwmbeancounter.com/tutorial/lesson03.htmlhttp://www.dwmbeancounter.com/tutorial/lesson04.htmlhttp://www.dwmbeancounter.com/tutorial/lesson06.htmlhttp://www.dwmbeancounter.com/tutorial/lesson07.htmlhttp://www.dwmbeancounter.com/tutorial/lesson06.html#FS1http://www.dwmbeancounter.com/tutorial/lesson06.html#FS3http://www.dwmbeancounter.com/tutorial/lesson06.html#FS5http://www.dwmbeancounter.com/tutorial/lesson06.html#FS6http://www.dwmbeancounter.com/tutorial/lesson06.html#FS2http://www.dwmbeancounter.com/tutorial/lesson06.html#FS4http://www.dwmbeancounter.com/tutorial/lesson06.html#CSBhttp://www.dwmbeancounter.com/tutorial/lesson06.html#CSWhttp://www.dwmbeancounter.com/tutorial/lesson06.html#FS7http://www.dwmbeancounter.com/tutorial/lesson06.html#FS9http://www.dwmbeancounter.com/tutorial/lesson06.html#FS8


12/15

(ayrollnot co.ered in this tutorial

The +usiness getsser.ices fro their e*lo"ees and gi*esu* a chec Accounts :sed,

/e+it9 alar" H $a!es )*enseCredit9 Cash

Lesson @ #he General Ledger and ournalse*lained what 'eneral Led!er and ournalsare, how the"%re used, and what +oo&&ee*in! *ur*oses the" ser.e#

ighlights,

A General Ledgeris (ust a +oo& containin! the suaried financial transactions and +alances of the

accounts for all of a +usiness%s assets, lia+ilities, euit", re.enue, and e*ense accounts#

ournals are *reliinar" records where +usiness transactions are first entered into the accountin! s"ste#

The (ournal is coonl" referred to as the +oo& of ori!inal entr"# *ecialied ournals-are (ournals used toinitiall" record s*ecial t"*es of transactions such as sales, cash dis+urseents, and cash recei*ts in their own

(ournal#

Lesson %inancial 'tate!entse*lained what financial stateents are, how the"%re created,and how the"%re used#

ighlights,

%inancial 'tate!entsare suar" accountin! re*orts *re*ared *eriodicall" to infor the owner, creditors

and other interested *arties as to the financial condition and o*eratin! results of the +usiness# The four +asic

financial stateents are9

Balance 'heet-The financial stateent which shows the aount and nature of +usiness assets, lia+ilities, aowner%s euit" as of a s*ecific *oint in tie# It is also &nown as a tateent f inancial >osition or a

tateent f inancial Condition#

Inco!e 'tate!ent-The financial stateent that suaries re.enues and e*enses for a s*ecific *eriod of

tie, usuall" a onth or a "ear# This stateent is also called a >rofit and Loss tateent or an *eratin!tateent#

apital 'tate!ent-The financial re*ort that suaries all the chan!es in owner%s euit" that occurreddurin! a s*ecific *eriod#

'tate!ent of hanges in %inancial (osition-The financial stateent that re*orts the sources and uses of

cash or wor&in! ca*ital for a s*ecific *eriod of tie, norall" a "ear#

Belie*e It $r ;otI &now "ou *ro+a+l" !ot tired of ABC owin!= +ut, usin! onl" our 1D sa*le transactions, we%.e co.ered the

Basics f Boo&&ee*in!# f course, in the real world, a +usiness will ha.e an" ore transactions that need t+e anal"ed and recorded= +ut, "ou a**l" the sae ethods and conce*ts that we learned and used in this

Tutorial#
http://www.dwmbeancounter.com/tutorial/Quizzes/Intro6.htmlhttp://www.dwmbeancounter.com/http://www.dwmbeancounter.com/tutorial/Quizzes/Intro6.htmlhttp://www.dwmbeancounter.com/tutorial/lesson05.htmlhttp://www.dwmbeancounter.com/tutorial/lesson07.htmlhttp://www.dwmbeancounter.com/tutorial/Tutorial.htmlhttp://www.dwmbeancounter.com/tutorial/lesson01.htmlhttp://www.dwmbeancounter.com/tutorial/lesson02.htmlhttp://www.dwmbeancounter.com/tutorial/lesson03.htmlhttp://www.dwmbeancounter.com/tutorial/lesson04.htmlhttp://www.dwmbeancounter.com/tutorial/lesson05.htmlhttp://www.dwmbeancounter.com/tutorial/lesson07.html


13/15

/arn It, +ac& under that li!ht a!ain M I didn%t ta&e this course to +e tortured# ou didn%t thin& "owere !oin! to esca*e the last lesson without +ein! tested did "ou 0 ee how "ou do with a few

uies#

Basic Boo&&ee*in! and Accountin! Conce*ts - I

Basic Boo&&ee*in! and Accountin! Conce*ts - II

Basic Boo&&ee*in! and Accountin! Conce*ts - III

/e+itFCredit Transaction &ills Test - inal

Additional Introductory Accounting and Booeeping Ga!es and


14/15

" con!ratulations to all "ou o!i Bears arter Than The A.era!e Bear or those of "ou too

"oun! to ree+er, o!i Bear is a cartoon character created +" $illia Ganna and ose*hBar+ara who alwa"s claied to +e sarter than the a.era!e +ear# Go*efull", if I did " (o+,

when it coes to +oo&&ee*in!, "ou can now clai to +e sarter than the a.era!e +ear# :o Ididn%t sa" "ou%re read" for the C>A ea "et M

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ore ree Boo&&ee*in! Courses M

" free o, "ou want to learn Boo&&ee*in!M introductor" +oo&&ee*in! courseintroduced "ou to +asic +oo&&ee*in! and " st"le of *resentin! inforation# In

addition to " Introductor" Boo&&ee*in! Tutorial, I%.e ?coo&ed u*? soe additionacourses o, "ou want to learn Boo&&ee*in!M eries f Boo&&ee*in! Tutorials for

those of "ou wantin! or needin! soe additional +oo&&ee*in! and accountin!education# If "ou%.e acuired a taste and ha.e an a**etite for ore of " &ind of

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*ecial ournals


Cash


>a"roll

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tutorials# our su**ort a&es it *ossi+le for e to continue to de.elo* and add additiona

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artoonsin this tutorial *ro.ided +" on Leishan# If "ou en(o"ed the, !et soe of "our own Toon-A-/a"

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15/15

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