Accounting Fundamentals

Fundamentals Fundamental to understanding Accounting is to coming to grips with the double entry- The Debits and the credits. Initially some students may think of their bank statements and how a credit on the bank statements means they have money and debit they have overspent. The issue here is that bank statement is produced by the bank, so the credit is from the bank's viewpoint i.e. the bank owes OUT to the customer. DEBIT in Accounting in simple terms means IN, so if business bank receives money the business bank account (in business accounting system) is debited. If the business pays a bill then the business bank account is CREDIT i.e. in simple terms means OUT. Now if the business bank account has money it will be a DEBIT balance (in the business accounting books), while the business bank statement will show a CREDIT, as the bank will owe out to the business, hence double entry rules are followed from the viewpoint of each business.

Practice past papers For Easter it is very important that practice of different types of questions for each topic is undertaken, and then filed together for that specific topic to be answered again later. e.g. Cash-flow statements questions can have the standard cash-flow statement starting with profit before interest and tax, whereas another cash-flow question will provide you with two balance sheets, and the Retained profit for the year will have to be found and then work backwards to get to the profit before interest and tax figure. Time yourself under exam conditions.

Don't forget the theory Also side by side with computational questions it is important to go over theory elements of the relevant course on a regular basis, so as to get as many marks as possible on the exam, as at times students forget some theory elements and loose easy marks.