Accounting · Study Guide
Key Points
Every transaction is recorded as a debit in one account and a credit in another; debits must equal credits
Source documents → books of prime entry → ledger accounts → trial balance
Debit/credit rules depend on account type: assets and expenses are debited when they increase
Exam Focus
Record transactions precisely with correct account names and double entry notation. Understand the flow from source document through to the trial balance.
Must-Know Terms
Cross-Theme Connections
Verification of accounting records
Verification of records depends on understanding double entry principles
Preparation of financial statements of sole traders
Double entry balances are the input to sole trader financial statements
Limited company accounts
Limited company accounts are built from the same double entry foundation