2 Double entry and the balance sheet
Section learning outcomes
By the end of this section you should be able to:
- understand and explain the need for financial records and financial statements
- understand the business entity and the dual aspect concepts
- define assets, liabilities and capital
- understand and explain the relationship between the accounting equation and double-entry bookkeeping
- record transactions in the appropriate ledger accounts using the double-entry bookkeeping system
- understand a simple balance sheet in a vertical format
- balance off accounts at the end of an accounting period
- prepare a trial balance.