Fundamentals of Bookkeeping and Financial Accounting

Fundamentals of Bookkeeping & Financial Accounting provides a foundation for understanding what the bookkeeping cycle is, and how the process works. The title begins by introducing students to the history of bookkeeping and accounting. It then revisits the origin of recording transactions, using the accounting equation and double entry system. Various forms of businesses are also discussed, in order to differentiate between them. The title then delves into the bookkeeping cycle, by guiding students through each process of the cycle, and ultimately, allowing them to develop their accounting skills. The overall focus throughout the title is on recording transactions – from understanding how to record financial transactions using various source documents, to drafting journals, posting to the general ledger, and drafting the trial balance. The bank reconciliation and creditors’ reconciliation are also discussed. These provide the link between accounting records and the documents issued to the entity. Finally, the accounting cycle is illustrated by outlining the drafting of financial statements.