Bookkeeping for Personal and Business Accounting (FutureLearn)

You’ll master common terms, basic maths and gain the ability to put your knowledge into practice. After this course you’ll be able to perfectly balance your books and understand how concepts of profit and loss lead to revenue or debt.

Develop ideas through conversation

This course is not facilitated. Learners are encouraged to support one another, share personal experience and knowledge, and see new perspectives.

What topics will you cover?

Week 1 - financial accounting and reporting

The reasons and objectives of management and financial accounting, including stewardship, control and accountability

Key terminology including income and expenses, assets and liabilities, profit and loss statements and the balance sheet

Week 2 - essential numerical skills

Intermediate numerical skills including BODMAS, ratios, percentages, fractions and negative numbers

The test of reasonableness and the table of equivalencies

Manipulating equations and formulas

Week 3 - double-entry and the balance sheet

Business entity and the dual aspect concepts

The relationship between the accounting equation and double-entry bookkeeping

Recording transactions in the appropriate ledger accounts using the double-entry bookkeeping system

Simple balance sheets in a vertical format

Balancing off accounts at the end of an accounting period

Preparing a trial balance

T accounts, debits and credits

Double-entry and the profit and loss account

The effect of profit on the accounting equation

Week 4 - accounting

Income and expense accounts

Accounting for closing stock

The account equation and double-entry rules

Trial balance nominal ledger accounts

What will you achieve?

- Describe and define bookkeeping and accounting

- Explain the general purposes and functions of accounting

- Explain the differences between management and financial accounting

- Describe the main elements of financial accounting information – assets, liabilities, revenue and expenses

- Identify the main financial statements and their purposes.

- Apply the essential numerical skills required for bookkeeping and accounting

- Explain the relationship between the accounting equation and double-entry bookkeeping

- Record transactions in the appropriate ledger accounts using the double-entry bookkeeping system

- Balance off ledger accounts at the end of an accounting period

- Produce a trial balance, balance sheet and a profit and loss account.