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Learn about the essential numerical skills required for accounting and bookkeeping. This free course, Introduction to bookkeeping and accounting, explains the fundamental rules of double-entry bookkeeping and how they are used to produce the balance sheet and the profit and loss account.
After studying this course, you should be able to:
- understand and apply the essential numerical skills required for bookkeeping and accounting
- 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
- balance off ledger accounts at the end of an accounting period
- prepare a trial balance, balance sheet and a profit and loss account.
- Current section: Introduction
- Learning outcomes
- 1 Essential numerical skills required for bookkeeping and accounting
- 2 Double entry and the balance sheet
- 2.1 Accounting records and financial statements
- 2.2 Accounting records and the business entity concept
- 2.3 Definitions of assets, capital and liabilities
- 2.4 A simplified UK balance sheet format
- 2.5 T-accounts, debits and credits
- 2.6 Balancing off accounts and preparing a trial balance
- 2.7 Summary
- 3 Double entry and the profit and loss account
- 3.1 Making a profit and generating cash
- 3.2 The effect of profit on the accounting equation
- 3.3 The profit and loss account
- 3.4 Income and expense accounts
- 3.5 Accounting for closing stock
- 3.6 The accounting equation and the double-entry rules for income and expenses
- 3.7 Post trial balance nominal ledger accounts
- 3.8 Summary
- Keep on learning
Study this free course
Enrol to access the full course, get recognition for the skills you learn, track your progress and on completion gain a statement of participation to demonstrate your learning to others. Make your learning visible!
Introduction to bookkeeping and accounting
In this free course, Introduction to bookkeeping and accounting, we introduce you to the essential skills and concepts of bookkeeping and accounting. To start with you will gain some practical skills in numeracy including learning about rearranging simple equations as well as some important calculator skills. Afterwards, you will gain knowledge and understanding of the fundamental principles that underpin bookkeeping and accounting. You will learn the time-honoured rules of double-entry bookkeeping and also how to prepare a trial balance and the two principal financial statements: the balance sheet (also known as the statement of financial position) and the profit and loss account (also known as the income statement).
This OpenLearn course is an adapted extract from the Open University course.
Copyright & revisions
Originally published: Friday, 26th February 2016
Last updated on: Friday, 26th February 2016
- Creative-Commons: The Open University is proud to release this free course under a Creative Commons licence. However, any third-party materials featured within it are used with permission and are not ours to give away. These materials are not subject to the Creative Commons licence. See terms and conditions. Full details can be found in the Acknowledgements and our FAQs section.
- This site has Copy Reuse Tracking enabled - see our FAQs for more information.
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