Accounting
Balance sheet, debits and credits, journal entries and cost accounting: the basics examined in the first semesters of business and economics degrees. Every topic with an example and practice problems with answers.
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Basics
The Balance Sheet Explained: Assets, Liabilities and EquityThe balance sheet shows on one date what a business owns and how it was financed. Both sides are always equal.Debits and Credits Explained: T-Accounts and Journal EntriesDebit is the left side of an account, credit the right side. Four rules tell you where every transaction goes.Balance Sheet Accounts and Income Statement AccountsBalance sheet accounts carry an opening balance from year to year. Expense and income accounts collect one year and are closed to profit and loss.The Income Statement (Profit and Loss) ExplainedThe income statement compares the income and expenses of one year. What is left is the profit or loss.The Four Types of Balance Sheet ChangeEvery transaction changes the balance sheet in one of four ways. Recognising the four helps you find the journal entry faster.Cash discounts: calculating and recording themA cash discount is a reduction for paying early. It is taken off the invoice total and the VAT on it is adjusted.VAT payable: output VAT minus input VATVAT payable is the output VAT on sales minus the input VAT on purchases. If input VAT is larger, the business gets a refund.Irrecoverable debts: writing off a receivableWhen a customer will definitely not pay, the receivable is written off as an expense. An allowance covers debts that are only doubtful.
Calculators with workings
Practice exams
Cost accounting practice examCost accounting practice exam: contribution margin, break-even, cost-plus pricing, overhead allocation, decisions. Answer online or print, with worked answers and new questions.Bookkeeping practice examBookkeeping practice exam with 10 transactions: purchases, sales, payments, discounts, depreciation, VAT, payroll and accruals. Online or as PDF, with answers.