Successful Bookkeeping for Small Businesses

✍ Scribed by Lymer, Andrew;Rowbottom, Nick

• Publisher: Teach Yourself
• Year: 2016
• Tongue: English
• Leaves: 496
• Category: Library

✦ Synopsis

Is this the right book for me?

Book keeping is neither dull nor mysterious - its rules are logical and straightforward and are readily mastered by practice.Successful Bookkeeping for Small Businessis a substantial yet easy to follow introduction to the principles of bookkeeping and the practical skills of recording transactions, posting the ledgers and preparing final accounts.

Written by finance and accounting experts from the University of Birmingham this book:

- Explains the purpose and use of books of original entry as the basis of the double-entry system.
- Describes the processes of recording purchases, sales and cash transactions.
- Shows how these records are used to prepare the final accounts, the manufacturing, trading and profit and loss accounts and the balance sheet to provide accurate financial statements.
- Explores petty cash, depreciation, partnership, company law, business documents and the effect of changes in IT.

Worked examples throughout allow you to put the theory into practice. There is also a wide range of carefully graded questions and exercises with sample answers. In short, it demystifies the art of bookkeeping and gives you the confidence you need to tackle your books.

Successful Bookkeeping for Small Businessincludes:

Chapter 1: What is book keeping?
Chapter 2: Business documents
Chapter 3: The business transaction, purchases and sales
Chapter 4: Purchase and sales transactions and ledger accounts
Chapter 5: Cash transactions
Chapter 6: The bank reconciliation
Chapter 7: Petty cash
Chapter 8: The (general) journal
Chapter 9: Writing up the books
Chapter 10: The trial balance
Chapter 11: What is profit or loss?
Chapter 12: The revenue account: the trading, profit and loss and appropriation accounts
Chapter 13: The balance sheet
Chapter 14: Adjustments in the final accounts
Chapter 15: Depreciation
Chapter 16: Clubs, societies and charities book keeping
Chapter 17: Information technology and book keeping
Chapter 18: Partnerships
Chapter 19: Limited companies
Chapter 20: The analysis and interpretations of accounts

Learn effortlessly with a new easy-to-read page design and added features:

Not got much time?
One, five and ten-minute introductions to key principles to get you started.

Author insights
Lots of instant help with common problems and quick tips for success, based on the authors' many years of experience.

Test yourself
Tests in the book and online to keep track of your progress.

Extend your knowledge
Extra online articles to give you a richer understanding of bookkeeping.

Try this
Innovative exercises illustrate what you've learnt and how to use it.

✦ Table of Contents

Cover......Page 1
Book title......Page 4
Contents......Page 6
Introduction......Page 10
Acknowledgements......Page 11
1 What is bookkeeping?......Page 12
2 Business documents......Page 18
Financial documents......Page 19
Wages documents......Page 28
Inventory records......Page 32
3 The business transaction, purchases and sales......Page 42
The business transaction......Page 43
The Purchase and Sales Journals in the bookkeeping system......Page 47
4 Purchase and sales transactions and ledger accounts......Page 68
The Ledger......Page 70
Purchase returns and allowances......Page 77
Purchases of a capital nature......Page 78
Sales......Page 80
Impersonal, or Nominal, and Private Ledgers......Page 85
Ledger Accounts......Page 86
Summary......Page 98
Control accounts......Page 100
Value Added Tax......Page 101
5 Cash transactions......Page 108
Procedure on receipt of cash......Page 110
Bookkeeping entries: Cash receipts......Page 112
Procedure on payment of cash......Page 115
Bookkeeping entries: Cash payments......Page 116
Goods and cash compared......Page 119
Cash Book postings to Ledger Accounts......Page 127
Other bank accounts......Page 128
Running balance account......Page 131
6 The bank reconciliation......Page 138
Customer/supplier statements......Page 147
7 Petty cash......Page 152
Imprest system......Page 157
8 The (general) journal......Page 164
9 Writing up the books......Page 178
10 The trial balance......Page 200
Errors which the Trial Balance will show......Page 203
Suspense Account......Page 204
Four-column Trial Balance......Page 207
11 What is profit or loss?......Page 216
12 The revenue account: the trading, profit and loss and appropriation accounts......Page 222
The Trading Account......Page 224
The Profit and Loss Account......Page 229
Appropriation (or Net Profit and Loss) Account......Page 237
13 The Statement of Financial Position......Page 242
The form of the Statement of Financial Position......Page 245
14 Adjustments in the final accounts......Page 264
Debts: good, bad or doubtful......Page 266
Rent and Rates......Page 271
Consignment and Branch accounts......Page 279
15 Depreciation......Page 290
Straight-line (or fixed instalment) method......Page 294
Diminishing (or reducing) balance method......Page 298
Comparison of the two methods......Page 301
16 Clubs, societies and charities bookkeeping......Page 310
Receipts and Payments Account......Page 311
Income and Expenditure Account......Page 315
17 Information technology and bookkeeping......Page 326
Basic functions of the computer......Page 327
Role of information technology in business......Page 328
Computers and bookkeeping......Page 329
Advantages of using a computer in bookkeeping......Page 330
Management of information technology in bookkeeping......Page 331
Further information......Page 332
18 Partnership......Page 334
UK Partnership Act 1890......Page 336
Creating or changing a partnership......Page 347
19 Limited companies......Page 358
Public and private companies......Page 359
The Memorandum and Articles of Association......Page 361
Share capital......Page 364
Unsecured loan stock......Page 365
Books of account......Page 366
Accounts and audit......Page 367
20 The analysis and interpretation of accounts......Page 384
Analysis of the Final Accounts......Page 386
The Profit and Loss Account......Page 387
The Statement of Financial Position......Page 388
Other business advice and help......Page 406
Courses and qualifications......Page 407
Bookkeeping software......Page 408
Answers to questions......Page 410
Examination papers and sample solutions......Page 422
C......Page 492
I......Page 493
P......Page 494
T......Page 495
Z......Page 496