Story overview
Principles of accounts
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A beginner-friendly guide to the core principles of accounting. This book breaks down complex concepts like double entry, journals, ledgers, trial balance, and final accounts into clear, practical steps. Packed with examples, worked solutions, and exercises, it’s designed for students, small business owners, and anyone who wants to understand how money really moves in a business. Build confidence in bookkeeping from zero to exam-ready.
Table of contents
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Ch. 1: Principles of accountsFree
This content contains the foundational principles of Accounting, covering essential concept, Technological,Ethical consideration, The mechanics of business Transaction and the preparation of basics financial statement. It is designed for learner's to grasp the Cole logic and structure of the accounting discipline.
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Ch. 2: 2. Ethics In app
These are rules of conduct that guide an accountant's behavior. Accountants handle money and confidential information, so trust is key.
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Ch. 3: 3. Business Transaction In app
3. Business Transaction
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Ch. 4: 4. The Ledger In app
Definition: The main book of Accounts. All transactions from journals/ day books are posted here. It is the final place where we know the balance of each account.
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Ch. 5: 5. Books of Prime Entry In app
These are the first books where transactions are recorded from source documents. We call them "day books" or "journals". Why "prime"? Because posting to Ledger happens _after_ recording here. Ledger is "secondary".
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Ch. 6: 6. Trial Balance In app
Definition: A list balances extracted from all ledger accounts with their debit or credit balances on a specific date. We "trial" to check if Dr = Cr. Purpose: 1. Test arithmetical accuracy of ledger posting 2. Basis for preparing Final Accounts 3. Detect errors - but not all errors Rule: Total Debits = Total Credits. If not equal, there’s an error somewhere.
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Ch. 7: Capital and Revenue Receipts and Expenditure In app
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Ch. 8: 8. Financial Statements of a Sole Trader In app
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Ch. 9: 9. Introduction to Accounting Ratios In app
Ratios are tools that turn raw financial numbers into meaning. They show relationships between items in financial statements. Why use ratios 1. Measure performance- Is the business profitable/efficient? 2. Compare - Current year vs last year, or vs competitors 3. Makeicission Should we give credit? Should we invest? Formula pattern: Ratio = One item ÷ Another item. Answer can be %, times, or shillings.