COURSE OVERVIEW:

A journal entry is a record of the business transactions in the accounting books of a business. A properly documented journal entry consists of the correct date, amounts to be debited and credited, description of the transaction and a unique reference number.

A journal entry is the first step in the accounting cycle. A journal details all financial transactions of a business and makes a note of the accounts that are affected.

Since most businesses use a double-entry accounting system, every financial transaction impact at least two accounts, while one account is debited, another account is credited. This means that a journal entry has equal debit and credit amounts.

Journal entries are used to record business transactions in the general ledger, but sometimes in a subsidiary ledger that is then summarised and rolled forward into the general ledger. The general ledger is then used to create financial statements for the business.

Journal entries are the foundation for all other financial reports. They provide important information that are used by auditors to analyse how financial transactions impact a business. The journalised entries are then posted to the general ledger.

This course explains and provides examples on journal entries including double-entry bookkeeping, debits and credits, T accounts, and the cash vs. accrual methods.

Then it discusses how to account for some of the more complicated types of transactions, such as depreciation expense, gains or losses on sales of property, inventory and cost of goods sold, etc.

LEARNING OUTCOMES:

By the end of this course, you will be able to understand:

·       What is a Journal entry?

·       What is the purpose of a journal entry?

·       What is included in a journal entry?

·       The different types of journal entries

·       How to make a journal entry?

·       Debit and credit definitions

·       Debit and credit usage

·       The rules of debit and credit

·       Debits and credits in common accounting transactions

·       Debits and credits examples

·       How a debit (or credit) to an account may increase it or decrease it, depending upon what type of account it is?

·       The revenue and expense accounts

·       How a general ledger works?

·       How a general ledger functions with double entry accounting?

·       What does a general ledger tell you??

·       The T-accounts

·       The trial balance

·       The cash method

·       The accrual method

·       The prepaid expenses

·       The unearned revenue

·       The materiality judgment

·       The depreciation of fixed assets

·       The straight-line depreciation method

·       The double declining balance method

·       The amortization of intangible assets

·       How the intangible assets are amortized using the straight-line method?

·       Inventory and Cost of Goods Sold

·       The perpetual method of inventory

·       The periodic method of inventory

·       How to calculate CoGS under the periodic method of inventory?

·       The first-in, first-out (FIFO) method

·       The last-in, first-out (LIFO) method

·       The average cost method

COURSE DURATION:

The typical duration of this course is approximately 2-3 hours to complete. Your enrolment is Valid for 12 Months. Start anytime and study at your own pace.

COURSE REQUIREMENTS:

You must have access to a computer or any mobile device with Adobe Acrobat Reader (free PDF Viewer) installed, to complete this course.

COURSE DELIVERY:

Purchase and download course content.

ASSESSMENT:

A simple 10-question true or false quiz with Unlimited Submission Attempts.

CERTIFICATION:

Upon course completion, you will receive a customised digital “Certificate of Completion”.