Accounting

Find out what trade debtors mean, how they appear on the balance sheet and how to account for trade debtors in double-entry bookkeeping.

Understand residual value as well as finding out how it is defined, calculated and why it matters in accounting.

Understand what the useful life of a fixed asset means, how to calculate it and what happens in accounting when useful life changes.

Understand whether cash is an asset or liability in accounting and how to disclose cash on the balance sheet.

Understand drawings in accounting, how they are treated in the financial statements of a sole proprietor and the tax implications.

Understand the meaning of the matching concept, how to use the matching principle when preparing accounts & see some examples of the concept.

The accounting equation is at the heart of accounting. It states that fundamental every transaction always has 2 entries to ensure accuracy. Find out more about the accounting equation for different business entities, the expanded version and how it ties up to the balance sheet.

Subsidiary ledgers form part of the accounting process when help is needed to keep track of financial information that isn’t recorded in the books of prime entry. In this guide, you’ll find out more about the subsidiary ledgers, the most common types used and how they fit into the accounting process.

The general ledger in accounting is a summary of the financial transactions of a business recorded in the books of prime entry. In a computerised system, it is also referred to as the nominal ledger or the chart of accounts.

Ledgers in accounting contain summaries of financial information recorded in the books of prime entry. Here’s how they work and an example of what they look like.