Skip to content
Skip to main content

About this free course

Become an OU student

Download this course

Share this free course

Introduction to bookkeeping and accounting
Introduction to bookkeeping and accounting

Start this free course now. Just create an account and sign in. Enrol and complete the course for a free statement of participation or digital badge if available.

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.