The balance sheet is often seen as a report prepared from a set of business books created by bookkeepers for accountants to give to their clients and the inland revenue.
Over at Accounting for Everyone we show how it can also be viewed as just another account in the accounting system.
If you have ever been on a formal accounting or bookkeeping course you will not have heard that angle before, and it is not surprising.
Double-entry is not an intuitive thing to grasp for most people, so it tends to be taught in a very traditional way.
Which means not a lot of explanation, just a lot of example. And this is where Accounting for Everyone makes all the difference.
The ability to see double-entry from a logical point of view is what all students could really do with, and the Accounting for Everyone course does not let them down.
So if you start with a transaction and you post that to a journal, you will then know that you re-post the same information to a ledger (or at least you would if you were using a manual system).
From there you can create a profit and loss account (note that it is an account - not just a report) by reposting or copying the data from the ledgers.
And finally you can post the results of the profit and loss account to the balance sheet - account! And there you have it.
It's revolutionary yet pure logic. To learn more about double-entry, and accounting and bookkeeping head on over to http://accountingforeveryone.com and sign up for the free course.
You can also take a basic bookkeeping exam online from there for a small fee and find out how much you have learned during.
Over at Accounting for Everyone we show how it can also be viewed as just another account in the accounting system.
If you have ever been on a formal accounting or bookkeeping course you will not have heard that angle before, and it is not surprising.
Double-entry is not an intuitive thing to grasp for most people, so it tends to be taught in a very traditional way.
Which means not a lot of explanation, just a lot of example. And this is where Accounting for Everyone makes all the difference.
The ability to see double-entry from a logical point of view is what all students could really do with, and the Accounting for Everyone course does not let them down.
So if you start with a transaction and you post that to a journal, you will then know that you re-post the same information to a ledger (or at least you would if you were using a manual system).
From there you can create a profit and loss account (note that it is an account - not just a report) by reposting or copying the data from the ledgers.
And finally you can post the results of the profit and loss account to the balance sheet - account! And there you have it.
It's revolutionary yet pure logic. To learn more about double-entry, and accounting and bookkeeping head on over to http://accountingforeveryone.com and sign up for the free course.
You can also take a basic bookkeeping exam online from there for a small fee and find out how much you have learned during.
