Chapter 3

Getting Started in the Bookkeeping Cycle

In This Chapter

arrow Establishing a chart of accounts

arrow Recognizing the difference between real and nominal accounts

arrow Appreciating the centuries-old debits and credits method

arrow Making journal entries for business transactions

The bookkeeping and recordkeeping system of a business requires an accountant to do the following:

check.png Establish the chart of accounts in which the transactions of the business are recorded

check.png Record original entries for transactions of the business as they occur day by day

check.png Use the debits and credits system for recording transactions in order to keep the books (accounts) of the business in balance

check.png Record additional adjusting entries ...

Get Accounting Workbook For Dummies now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.