Understand your accounts, build reliable bookkeeping routines and work through GST questions with clear examples and source-linked explanations.
Record a partner’s personal withdrawal against the appropriate partner drawings, current or capital account according to the agreement and ledger structure. Credit bank or cash for the actual payment. A…
Read guide · 5 minWhen a company validly declares a dividend and a present obligation arises, record the distribution against the appropriate retained-earnings or distribution account and credit Dividend payable. Later…
Read guide · 5 minA compound journal entry records one supported event across more than two accounts, with total debits equal to total credits. It is useful when a purchase, collection or payroll event contains several…
Read guide · 5 minA useful ledger narration explains what happened, why the selected accounts were used and where the supporting evidence can be found. Include the business purpose, relevant period and key document…
Read guide · 5 minFollow each balance sheet section and use supporting schedules to judge what the business owns, owes and can actually use.
Read guide · 5 minUnderstand what each profit subtotal means and why a profitable month can still leave cash short.
Read guide · 5 minUse the three activity groups to see how trading, asset investment and funding changed the business’s cash.
Read guide · 5 minFollow a small trading business through transactions that link profit, financial position and cash.
Read guide · 5 minMove from ledger balances to a balanced, supported financial position report without using unexplained balancing figures.
Read guide · 5 minMap income and expense ledgers, complete adjustments and explain the result using reconciled schedules.
Read guide · 5 minReconcile accounting profit to operating cash and connect it with asset investment, borrowing and closing cash.
Read guide · 5 minTurn bank and cash records into major operating receipt and payment classes without counting transfers twice.
Read guide · 5 minBuild side-by-side statements that distinguish real business movements from changes in period, policy or classification.
Read guide · 5 minCompare financial structure and cost patterns by expressing statement lines against a consistent base.
Read guide · 5 minCombine indexed results, margins and operating evidence to identify the direction and quality of change.
Read guide · 5 minFind the price, cost, mix and accounting movements behind a reduction in trading margin.
Read guide · 5 minFind out whether additional sales create enough operating profit to justify their costs and resource needs.
Read guide · 5 minUnderstand why a change in final profit margin may reflect financing or accounting as well as trading performance.
Read guide · 5 minUse EBITDA as a defined earnings subtotal while keeping asset investment, financing and cash conversion visible.
Read guide · 5 minChoose between earnings after and before depreciation by first defining the business question and reconciling both measures.
Read guide · 5 minTrace working-capital movements to the assets and obligations that create daily funding needs.
Read guide · 5 minUnderstand what the current ratio says about short-term financial structure and what it cannot tell you about next week’s payments.
Read guide · 5 minAssess short-term cover after removing reliance on inventory and other assets that cannot readily fund payments.
Read guide · 5 minRead borrowing relative to owner funds while checking what counts as debt and whether earnings and cash can support repayment.
Read guide · 5 min