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T-accounts, used in manual accounts. These are simplest way of expressing transactions. Using double-entry, increased value to company, debit side, date, amount, account holder name, and corresponding credit posting. That is similar, but on lefthand side of the other T-account. It’s much less confusing to express, calculate and for b/d brought down, and c/d carried down. At end of accounting period.

If Trial Balance doesn’t balance. If you can’t find causes, the simplest way out, a “Suspense Account”.

Remember, “The Accounting Equation” Capital=Assets-liabilities,,

Reading down “A Balance Sheet”, remember. Liquidity decreases going down the balance sheet. (Source: IFTWorld). Cash, at top, stock, then fixed assets going down, then liquidity, drawings and capital.

Wood & Sangster books used to be the ultimate accountancy student’s friends.

Its not exactly MBA teaching, I guess! But still, small stones made the abacus.

Davie T.

1sr October, 2024

From memory, the cash book is double-entry, whilst petty cash book isn’t. Petty cash relies on an “Imprest”, or float, Paid through bank, e.g. refreshed, every day to maybe £10 for stamps, coffee and other consumables. The £10 being the Imprest. I’d have passed RSA 1 Manual Bookeeping, if local exam wasn’t cancelled. Back in 1990s.

20 years ago, I was offered AAT entry at level 3.. Nowadays, I struggle to see most things offline..

DT

People will need to know this.

Capital= Assets -Liabilities.

Basically, the value of the company is it’s assets, with debts deducted.

It can be expressed as an extended Accounting Equation.  That incorporates Income and Expenditure.

Check through a set of the Frank Wood and Mr Songster..  the best manual bookkeeping, and theoretical accounting books..  They’re the bees knees of accounting.

More to follow?

Dave T.

If you want to learn how to use a computerised accounts system. Try Xero, Sage, Intuit, or one of the others listed on UK government site for “MTD” (make tax digital).. If you don’t know how to apply transactions, get a bank account devoted to business and study a few accounting systems.

Assuming you are registering as a limited company. You’ll need to be up to speed on submitting yearly accounts. I found micro entity accounts easiest. It works around the “Accounting Equation”. But, I’d trained in basic bookkeeping. So, it still required thought and care..

It’s unlikely that you’ll think of it. But, you will need insurance for your company. Indemnity and equipment, there’s a long list.. Fulfilling through a website. Be careful. Avoid losing passwords, numbers, those kinds of things. Don’t just rely on electronics. Though its a massive assistance.

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There’s much more, but I’ve moved it accidentally. I may come back

Dave T.

With popularity in Russian pop-pop charts? It’s not my kind of music, Elgar, is my limit.. The Beatles, Searchers and similar are much more my scene..

Dave T.

“At times of need, some men excel. But, where’s the man to do all things well”?

I don’t think I’m the man. My nervous system wouldn’t allow it. . Must be too much psychiatric medication. I shouldn’t even walk to the door. An unreal world, often.

Dave T.