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.
