Contents
Accounting Basics .............................................................................................................. 3
The Accounting Equation ................................................................................................. 3
Assets.................................................................................................................................. 3
Liabilities ............................................................................................................................. 3
Owner’s Equity................................................................................................................... 3
The Balance Sheet .............................................................................................................. 5
Double Entry Bookkeeping............................................................................................... 6
Ledger Accounts................................................................................................................ 6
Trial Balance ...................................................................................................................... 7
Profit and Loss account.................................................................................................... 8
Sales.................................................................................................................................... 8
Cost of Sales ...................................................................................................................... 9
Expenses ............................................................................................................................ 9
Reporting Period & Conversion Period....................................................................... 10
Conversion partway through year................................................................................. 10
Other conversion issues................................................................................................. 10
Glossary .............................................................................................................................. 12