This chapter defined and explained the elements to the financial statements. The accounting equation was then defined, explained and illustrated, before progressing on to explaining the financial statements of a business. Finally, the principles of double-entry bookkeeping were introduced, explained and illustrated, along with recording transactions in ledger accounts.
The chapter introduced, explained and illustrated how to account for trade and early settlement discounts and sales tax.
You are now ready to progress on to developing our knowledge and understanding of recording broad range of transactions and events in the general ledger.