Lifestyle Learning Direct

Nature and Function of Accounting for Service Firms

Basic purposes and scope of bookkeeping for service firms, the use of financial information, and accounting standards and conventions are covered in the first lesson.

The Balance Sheet

The use and purpose of balance sheets is covered, along with the two styles they are prepared in.

Analysing and Designing Account Systems

Be guided through how to set up a bookkeeping system, the steps in the operation of the system, as well as additional information on other business documents.

Double Entry Bookkeeping

Step by step instructions on how to set up double entry bookkeeping.

Cash Receipts and Cash Payments Journals

Journals, also known as day books, are the books of original entry. Discover the need and function of journals as you learn how to records transactions, both receipts and payments, as well as discounts.

Credit Sales and Purchases Journal

Although cash receipts and payments make up the bulk of transactions, many businesses also deal with business on a credit basis. Here you will learn how to record the ‘have now and pay later' credit sales and purchases.

The General Journal

At times businesses have transactions that do not fit into any of the other special journals. This is where the general journal is used. Learn what transactions go into the general journal they are posted.

Closing of the General Ledger

Learn the appropriate ways of closing ledger accounts at the end of the accounting period. Included is information on transferring of net profit and accounting for net loss.

Profit and Loss Statements

After completion of the trial balance, a profit report and balance sheet can be prepared. Here you will learn how to create a profit and loss statement.

Depreciation of Non-Current Assets

There are a number of methods used to calculate the amount of depreciation expense. Here you will learn each one and the best method applicable to different assets.

Profit Determination and Balance Day Adjustments

Understand the ‘accrual' and ‘cash' basis of accounting, the matching process, and the need for balance day adjustments.

Cash Control - Bank Reconciliations and Petty Cash

Learn about the cash cycle, the need for control over cash, the various methods used in controlling cash, the need for the bank reconciliation processes and the petty cash system.

Cash Control - Budgeting

Budgeting is the financial plan of action. Learn about the different types of budgets used in business and also other implications such as debt collection.