Basics of Accounting

This textbook introduces you to international bookkeeping and accounting. It is designed as self study materials and covers the syllabus of an introductory class in accounting. After studying the Basics, you are well prepared to keep bookkeeping records and prepare financial statements like the balance sheet, the income statement, the cash flow statement and the statement of changes in equity.

All chapters outline the learning objectives, provide an overview, include case studies and how-it-is-done-paragraphs. They end with a summary, the explanation of new technical terms and a question bank with solutions for checking your learning progress. On the internet, you can find more than 350 exam tasks including solutions as well as youtube-videos from the author.

The textbook prepares you to study accounting and assists you with the transition from German bookkeeping to international accounting when qualifying for IFRSs.



Prof. Dr. Carsten Berkau teaches accounting at Osnabrück University UAS and in South Africa, Malaysia, South Korea and China. Further books: Financial Statements, Bilanzen and Management Accounting.



1 Conventions

2 Cafeteria Example and what is on the Balance Sheet

3 Shareholders' View

4 Legal Aspects of Accounting

5 The Excel Accountant

6 Introduction to Balance Sheet and Income Statement

7 Activities on the Asset Side of the Balance Sheet

8 Activities on Both Sides of the Balance Sheet

9 Profit and Loss Activities

10 Introduction to T-Accounts for Items on the Balance Sheet

11 T-Accounts for Profit and Loss

12 Introduction to Bookkeeping Entries

13 Special Asset Accounts

14 Special Equity Accounts

15 Special Liability Accounts

16 Reconciliation Accounts

17 Depreciation

18 Further Expenses and Accruals

19 Accounting for Labour

20 Trading Business – Purchases and Returns

21 Trading Business – Purchases and Returns plus VAT

22 Trading Business – Sales and Returns

23 Trading Business – Sales and Returns plus VAT

24 Privately-owned Business: Drawings

25 Production Firms

26 Inventory Systems

27 Cost Formulas

28 Income Statement Following the Cost of Sales Format

29 Trial Balance

30 Tax Calculation, Profit Appropriation and Changes in Equity

31 Multiple-Period Bookkeeping

32 Introduction to Statements of Cash Flows

33 Establishment of a Business and Legal Form Changes

34 Liquidations

35 Disposals

36 Discounts and Rebates

37 Cash Book: Reconciliation with the Bank Statement

38 Petty Cash Book

39 Books of Original Entry