Accounting short course – Reviewing the Trial Balance

Let us consider a comprehensive example that uses everything that we have learnt up until now.

Following are the business transactions of a newly formed business setup by Andrew.

2010 Accounting transaction

May 1 Started business with $50000 in the bank.

May 2 Bought inventory on credit from: Smith $6000, Rachel $3000, John $5000.

May 3 Bought office furniture for $4000 paid by bank.

May 4 Bought computer…

Premium Courses Understanding N(d1) & N(d2)$199.00Derivatives Terminology Crash Course$7.99Calculating Value at Risk (VaR) - Package$77.00Portfolio Risk Metrics – EXCEL Example$19.99

...Click here to read more »

Accounting short course: Introducing the Trial Balance

Until now, we have been reviewing how to record business transactions. Given the volume and details involved in recording accounting transactions tedious work and there are chances of making mistakes. Accounting systems and accounting process realizes this limitation and has a control process in place to identify, highlight and rectify such errors. The tool we use for this…

Premium Courses Calculating VaR for Futures and Options - EXCEL Example$69.00Derivatives Pricing - Package$40.00ICAAP Sample Report Template & Executive Summary$79.00Portfolio VaR – EXCEL Example$59.00

...Click here to read more »

So a quick recap. All the items that cannot come in the purchases and sales ledger have their accounts in the general ledger. Apart from these accounts sales, purchases, sales return and purchase return have their accounts in the general ledger as well. For the transaction mentioned and covered in the previous section of the accounting crash course, here are the entries in the General Ledger.

...Click here to read more »

Accounting Crash Course: Small Business Accounting: Cash Book Example

Let’s see everything in action in an example.

Following are the cash transactions of Alan’s business:

Balances brought forward from last month; cash: $6000 and bank: $300 (credit)

Jan. 3 Cash sales of $1000 paid by cheque.

Jan. 5 Paid $550 cash to Samantha for the inventory bought on credit from her. Samantha allowed a discount of $50.

Jan. 6 Received a cheque from Justin of…

Premium Courses Ratio Analysis$16.69Understanding N(d1) & N(d2)$199.00Understanding Stress Testing$199.00Introduction to Financial Modelling$49.00

...Click here to read more »

Basic Accounting Crash Course: Cash Book and recording cash discounts

Up until this point we have only dealt with credit transactions. We haven’t dealt with any cash. We will now be learning how to record cash transactions. All the cash (or for that matter bank) transactions are recorded in the cash book. Following is an excerpt from a typical cash book.

Cash book excerpt

...Click here to read more »

Journals and Ledgers example

Sales Return and Purchase Return Journals

Let’s first talk about the sales return journal. Any inventory that is returned by the customers to us is first recorded in this journal. When we agree to accept the return of goods, we issue our customers with a credit note. This note no. is recorded in one of the columns of the sales return journal.

Following is an excerpt…

Premium Courses Monte Carlo Simulation – Commodity – Example$8.99Risk Frameworks & Applications – 2nd Edition$140.00Portfolio VaR – EXCEL Example$59.00Credit Analysis & Credit Process - Package$49.00

...Click here to read more »