Starter Pack

BookkeepingDiploma in

In the Bookkeeping course, you can expect 4 modules comprising of the following:

Each module will have:

• 8 lessons• 4 practice assignments• 1 module assignment• Webinar slides• Summary notes• Bonus lessons

Bookkeeping

Course Outline

Module 1

Module 2

Module 3

Module 4:

Lesson 1: Lesson 2: Lesson 3: Lesson 4: Lesson 5: Lesson 6: Lesson 7: Lesson 8:

Lesson 1: Lesson 2: Lesson 3: Lesson 4: Lesson 5: Lesson 6: Lesson 7: Lesson 8:

Lesson 1: Lesson 2: Lesson 3: Lesson 4: Lesson 5: Lesson 6: Lesson 7: Lesson 8:

Lesson 1: Lesson 2: Lesson 3: Lesson 4: Lesson 5: Lesson 6: Lesson 7: Lesson 8:

IntroductionThe accounting cycleBuilding blocksThe accounting equationCash books and cash receiptsCash books and cash paymentsGeneral Ledger and Trial Balance part 1General Ledger and Trial Balance part 2

Bank reconciliationDebtorsInventoryAssetsCreditorsEquity and liabilitiesPayrollDebtors and creditors reconciliations

ErrorsYear-end proceduresAccounting conceptsInternal controls part 1Internal controls part 2AuditsBudgetingForecasting

Elements of Annual Financial StatementsBalance SheetIncome Statement and Retained IncomeCash Flow StatementNotes to the financial statementsInterpreting financial statementsAccounting ratiosConsolidation

Accounting: Process of recording, reporting, analysing, and interpreting financial records of a business.Bookkeeping: Process of recording financial transactions from source documents.Credit: The right side of an account.Debit: The left side of an account.Expenses: Outflow of money to cover the costs incurred to generate revenue.Financial statements: This refers to the balance sheet, income statement, cash flow statement and statement of retained income, which report the financial position and performance of a business.General ledger: A detailed list of all the financial transactions that occurred during the financial year.Historical cost: The original value of an asset at the time of acquiring the asset.Inventory: An asset showing the value of raw materials, work-in-progress items, and the completed items.Journal entry: A debit and credit in the ledger to record a financial transaction.K: This can be used as a unit to abbreviate numbers in thousands e.g. 1 000 = 1k.Liability: Money owed by the organisation to stakeholders such as suppliers and lenders. Matching principle: A key accounting principle which requires expenditure incurred in a financial period to be matched to the revenue generated from these transactions.Net profit: Surplus or deficit remaining after the deduction of cash and non-cash expenditure from revenues, also referred to as the “bottom line”.Owner’s equity: Money invested into the business by owners.Petty cash: A minimal amount of cash set aside for sundry expenses such as tea and coffee.Quarterly reporting: Financial reports produced once every three months. Revenue: Compensation earned by the organisation for the sale of goods or the rendering of services.Solvency: The ability of an organisation to honour its debt as it becomes due.Trial balance: A summary showing the debit and credit balances of all the accounts in an organisation.Unqualified opinion: Also referred to as a “clean” audit report, where the audit results indicate that the annual financial statements are a fair representation of the organisation’s performance and position.Value: Monetary worth of an item.Wages: Compensation earned by employees that are generally paid based on an hourly rate.Xhiliration and xcitement: The feelings felt upon getting the cash flow statement to balance.Yield: The return on an investment e.g. dividends.Zero-based: One of the budgeting methodologies applied, based on the assumption that the business has never incurred any expenditure.

A - Z of basic bookkeeping cheat sheet:

Bookkeeping

Rule of thumb:Assets: Generally, increases on the debit side

E.g. DebtorsInventoryCashProperty, plant and equipmentExpenses

Liabilities: Generally, increases on the credit sideE.g. Creditors

LoansPayroll payableTax payableIncome

Equity: Generally, increases on the credit sideE.g. Shareholder’s equity

Retained incomeCapital contributions

ReferencesAverkamp, H., 2020. Accounting Coach: Terms. [Online] Available at: https://www.accountingcoach.com/terms[Accessed 10 July 2020].

Starter Pack

Bookkeeping

Assets =

←

←

Equity +

Liabilities