Quick Ways to Learn Accounting

Table of contents :

Quick Ways to Learn Accounting

Learn from NORMAL BALANCE first

Pay attention to how to record transactions in a journal

Get into the ledger

Preparing financial statements

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Quick Ways to Learn Accounting

The word accounting may not be strange to some people anymore, because accounting is a lesson that is in high school.

 

However, accounting lessons are only given to students majoring in Social Sciences or children who attend high school accounting majors.

 

How to quickly learn accounting can actually be studied very easily if the student has a strong will and determination to master accounting.

 

Quick Ways to Learn Accounting

 

Learning accounting is not difficult for students who like logic. Maybe most people who don’t like learning accounting

 

because in their dreams accounting is like calculating a math problem with lots of formulas.

 

Whereas in fact accounting is not a subject that only calculates but also uses logic.

 

The following are steps if you want to learn accounting in a fast, practical way:

 

Learn from NORMAL BALANCE first

Assessing the normal balance of each account is because accounting focuses more on logic, not on computation like mathematics.

 

Example:

 

The normal balance of a cash account is a debit, if logged it will be like this:

 

If cash increases, the journal position is debited. However, if cash is reduced, the journal position is in credit.

 

The balance sheet and income statement are divided into five types, namely:

 

Asset (debit)

Liability (credit)

Capital (credit)

Income (credit)

Load (debit)

Logic is used in inputting between debit and credit, so it must be more careful. And what needs to be underlined is knowing the initial balance, although not everything is the same as the schedule.

 

Also Read:   Proof of Transaction

Pay attention to how to record transactions in a journal

Journals can be divided into two types, namely special journals and general journals.

 

Special journals include:

 

The cash disbursement journal exists because of cash disbursement activities

The purchase journal exists because of the expenditure activity of credit cash

The cash receipts journal exists because of cash receipt activities

The sales journal exists because of the cash receipt activity

Likewise for general journals are the activities of all activities other than the main business in the company. So everything is entered in a general journal.

 

Get into the ledger

In studying the ledger can be the easiest but it must be very thorough. The simple way here is only to combine transactions in the journal according to what is in the account.

 

Account 1 starts with assets

Account 2 starts from Liability

Account 3 starts with Capital

Account 4 starts with Income

Account 5 starts with Expenses

Preparing financial statements

The following are several types of financial reports including:

 

Income statement

Capital Report

Balance sheet

Cash flow

Notes to financial statements

The method of calculating profit and loss is by using account four, adding up then subtracting it from account five, then you will get an income statement.

 

How to calculate capital = (initial capital + profit) – loss. Meanwhile, the way to prepare a balance sheet is to calculate all accounts 1 and account 2, then add the capital report.

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