I too was curious when the pick, bubbly optimism that overtook me (not unlike the madness that surrounded my TV watcher to marathon trainee transformation attempt last year) would become vulnerable to some equation or another. It came on page 84/762 of Business Accounting I as my anti-numerical brain began to fade after wading through:
- THE ACCOUNTING EQUATION (accounting DNA)
- balance sheets
- double entry system (simple and then with credit, inventory, liabilities and returns)
- profit & loss statements
- expenses & revenue
- drawings & effects on capital
- three column accounts
- that debit balances always (apparently) equal credit balances and that this is tested with a Trial Balance
Up to this point, I was good. Oddly keen even. Last night, I took the Part One multiple choice quiz and was nearly giddy when I got 100%. After my run this AM, I found time to do a few more pages. All was going swimingly until I tried to work from gross profit (grand) -> net profit (ok) -> trial balance (still there) -> income statements (CRASH).
So tonight I give up and reward myself with a little tea break and reward you for reading with a little slideshow of my chicken scratch T Accounts. Tomorrow, I will give up just using my little book and find some websites that also teach accounting- posssibly even this one even though they obviously need a decent web designer: accountingcoach.com. The text book is only doing so much for my brain. I need an app damn it. [Amend: this is helping]
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