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.

Free course

Introduction to bookkeeping and accounting

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.
B190_1

Take your learning further

Making the decision to study can be a big step, which is why you'll want a trusted University. The Open University has 50 years’ experience delivering flexible learning and 170,000 students are studying with us right now. Take a look at all Open University courses.

If you are new to University-level study, we offer two introductory routes to our qualifications. You could either choose to start with an Access module, or a module which allows you to count your previous learning towards an Open University qualification. Read our guide on Where to take your learning next for more information.

Not ready for formal University study? Then browse over 1000 free courses on OpenLearn and sign up to our newsletter to hear about new free courses as they are released.

Every year, thousands of students decide to study with The Open University. With over 120 qualifications, we’ve got the right course for you.

Request an Open University prospectus371