Description

1. Introduction to Accountancy

• Definition of Accountancy: What is accountancy? The role of accountants in business and finance.
• Types of Accounting:
• Financial Accounting
• Managerial Accounting
• Cost Accounting
• Tax Accounting

2. Basic Accounting Concepts

Accrual vs. Cash Basis Accounting: Explanation of both and their use.
Double-Entry System: Every transaction affects at least two accounts.
The Matching Principle: Revenue and expenses must be recorded in the period they are earned or incurred.

• The Balance Sheet: What it is and how to read it.
• Assets (Current and Non-Current)
• Liabilities (Current and Non-Current)
• Equity
• The Income Statement (Profit and Loss):
• Revenue, Expenses, and Net Profit.

The Cash Flow Statement:
Operating, Investing, and Financing activities.

• Understanding Journal Entries: How transactions are recorded.
• The Journal: Introduction to debits and credits.
• Common Types of Journal Entries:
• Sales, Purchases, Expenses, and Adjustments.
• Examples: Simple journal entries to illustrate the process.

5. General Ledger and T-Accounts
What is a Ledger?: A detailed record of all transactions.
T-Accounts: How to use T-accounts for tracking debits and credits.
Posting from the Journal to the Ledger: Process and importance.

6. Trial Balance
What is a Trial Balance?: Purpose and preparation.
Balancing the Accounts: Verifying that the debits and credits match.
Common Errors: Understanding why the trial balance might not balance.

• What is Depreciation?: How to account for depreciation of assets.
• Methods of Depreciation:
• Straight-Line
• Reducing Balance
• Units of Production
• Amortization: Application to intangible assets.

8. Key Financial Ratios
Liquidity Ratios: Current Ratio, Quick Ratio.
Profitability Ratios: Gross Profit Margin, Net Profit Margin.
Efficiency Ratios: Return on Assets, Asset Turnover.
Leverage Ratios: Debt to Equity, Debt Ratio.

9. Basic Bookkeeping Terms and Definitions
Accounts Receivable vs. Accounts Payable
Capital vs. Revenue
Inventory: How it is recorded and valued.
Equity and Liabilities: Their importance in business financing.

10. Conclusion & Practical Applications
Real-life Examples: How accounting principles are applied in small businesses, corporations, or startups.
Tools for Accountants: Accounting software (e.g., QuickBooks, Xero) and its usage.