The Open University since 2006
Alternatively you can skip the navigation by pressing 'Enter'.
Full Steam Ahead: Episode sixThursday, 25th August 2016 20:00 - BBC TwoThe final episode of Full Steam Ahead looks at how more free time and rail transport allowed Victorians to travel... Read more: Full Steam Ahead: Episode six
Life Story: First stepsAvailable until Sunday, 25th September 2016 00:50Each generation's greatest challenge - to ensure the next generation thrives. Read more: Life Story: First steps
‘Super-human’ athletes are at risk from the post-Olympic blues – here’s whyHow do the successful Olympians cope with the aftermath of the games? Are they more prone to... Read more: ‘Super-human’ athletes are at risk from the post-Olympic blues – here’s why
Full Steam AheadIt’s Full Steam Ahead for historians Ruth Goodman, Alex Langlands and Peter Ginn as they bring... Read more: Full Steam Ahead
Internet of everythingThe internet of everything (IoE) is the networked connection of people, process, data and things.... Try: Internet of everything now
Succeed with maths – Part 1If you feel that maths is a mystery that you want to unravel then this free course is for you. It... Try: Succeed with maths – Part 1 now
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.
If you enjoyed this, why not follow a feed to find out when we have new things like it? Choose an RSS feed from the list below. (Don't know what to do with RSS feeds?)
Remember, you can also make your own, personal feed by combining tags from around OpenLearn.
- Latest OpenLearn pages
- Latest pages from OpenLearn - Money & Management
- Latest pages from OpenLearn - Accounting and Finance
- Latest pages tagged - Accounting
- Latest pages tagged - bookkeeping
- Latest pages tagged - Double-entry bookkeeping
- Latest pages tagged - balance sheets
- Latest pages tagged - profit and loss account
- Latest pages tagged - B190_1
- Latest pages tagged - free courses
- Latest comments on this page
All our alternative formats are free for you to download, for more information about the different formats we offer please see our FAQs. The most frequently used are Word (for accessibility), PDF (for print) and ePub and Kindle to download to eReaders*.
- Word (2.2 MB)
- PDF (2.9 MB)
- ePub 3.0 (1.4 MB)
- ePub 2.0 (1.4 MB)
- Kindle (919 KB)
- RSS (362 KB)
- HTML (1.3 MB)
- SCORM (1.3 MB)
- OUXML Package (32 KB)
- OUXML File (133 KB)
- IMS Common cartridge
- Moodle backup (1.2 MB)
*Please note you will need an ePub and Mobi reader for these formats.