Make sense of accounting
We’ve seen where information comes from in the source records and how it is recorded in the books of prime entry, but it is still doesn’t easily show how a business is performing or the assets it holds. The lists of information need to be summarised and recorded in ledgers using double-entry bookkeeping, so financial statements can be produced. In these guides, you’ll learn about ledgers, bookkeeping and how a trial balance is prepared.
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.
The accounting process is the series of 6 steps taken to gather, summarise and present the financial information of a business. In this guide, you can find out exactly what the 6 steps are and their sequence.
