Welcome to Accounting 101 series section of accountant next door where links and brief introduction of all core accounting articles will be placed. This section will keep expanding as I add more content to it so please do earmark this page if you haven’t done so yet and frequently visit for fresh updated accounting 101 series articles.
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Table of Contents
It is traditional in every field of endeavour that anyone who intends to get into that field seeks foundational knowledge first before diving deeper into other facets of the field. Accounting is not different. I have written an article that is designed to gently introduce newcomers to the world of accounting to the one of the noblest profession that I know. Welcome to what is accounting.
A trial balance in simple term is a list of all ledger balances. The list is arranged in columns respectively called debit (Dr) and credit (Cr) column. The primary aim of a trial balance is to test arithmetic accuracy of the figures in the various ledgers. This does not mean that all possible errors are captured in trial balance. I urge you to explore my full article on the fundamentals of a trial balance.
Bank reconciliation is a basic skill that every accountant must have. The chances that all the entries made in our cash book shows up in the bank are slim. Hence, bank reconciliation helps make sure that all differences (reconciling items) are properly explained. I will point you to two articles on bank reconciliation. The first is the basics of how to prepare a bank reconciliation statement while the other is how to prepare a bank reconciliation statement using Microsoft excel formula.
A journal entry is that initial recording of a transaction that is made in a general journal before subsequently transferring same to the general ledger. The line between a Journal and ledger is becoming blurred as we continuously advance in technology but that doesn’t mean that a journalizing is no longer important, just that it is increasingly being imbedded into ledger. Explore the full article of what is a journal entry by clicking on the highlighted link.
Although the advent and advancement of technology has greatly reduced the significance of branch accounting, the principles contained in this topic still applies to a good number of scenarios. Please kindly read further the full article on what is branch accounting through the link.
Accounting as a profession would have been in complete chaotic state if not for the invention of accounting standards that attempts to coordinate the activities of accountants. This section of accounting 101 series points you to a comprehensive article on what is accounting standard.
The advent of accrual accounting necessitated the need for accounting adjustments to be made at the end of each period. Period end accounting adjustment sometimes creates all sorts of problems for junior accountants. Hence in today’s accounting 101 nugget, I am pointing you to a detailed article on what is accounting adjustment.
Many years ago, Luca Pacioli, the widely acclaimed father of double entry popularized the idea of ensuring that every business transaction has at least dual impact on the books of account. Many have struggled to grasp this marvelous concept that made accounting what it is today.
For this reason, we at accountant next door in today’s doze of accounting 101 have put together this piece specifically providing simple answer to the question of ‘what is double entry in accounting’? Enjoy the less than 4 minutes reading.
There is no such thing as free lunch even in Freetown. Businesses make use of fixed asset to produce goods and services. Those assets loose some value by virtue of them being put to use. Depreciation is a way of charging those lost value to the period that they are used. As always, read more about what is depreciation by following the hyperlinked text.
Those of us that have had our fair share of experience working with sole traders understand how difficult it can sometimes be to make sense out of the records that are maintained by the traders or small business owners. Having a solid knowledge of incomplete record accounting comes to the rescue. This section of the accounting 101 series points you to our detailed article on incomplete record and single-entry bookkeeping, simply follow the link to enjoy it
At the heart of the activities of business transaction posting is the general ledger. Anyone who aspires to be a great accountant starts by gaining mastery of the concept of a ledger. Today, we are adding the link to an article written to thoroughly provide an answer to the question of what is a general ledger as hyperlinked.
Do not be afraid by the use of the phrase accounting equation because this does not require you to solve some complex mathematics. The accounting equation simply is used to measure equality of resources owed and owned. Please kindly follow the link to learn all about accounting equation in a simplified language.
The nature of the new world where we have been living in entails that businesses make sales on credit with an unwritten promise from the customer that they will make good on their promise to pay on an agreed future date. In accounting lingo, those promise to pay on a future date is known as receivables. A comprehensive article on accounts receivable is hyperlinked for your consumption.
In a bid to continually improve processes, the accounting community deemed it fit for a mechanism designed to be used to narrow down errors in ledger in an efficient way. Please kindly explore the full article on what is a control account as linked.
We have an extensive article that comprehensively provide answer to the question of what are underlying assumptions of accounting? Please do well to go through it.