Double entry from zero

Rooms in this module

How this works

Each room answers one problem. A task is a few lines of reading, then questions you answer in the books: post to an account, type a figure, sort, match or write a journal. Every answer is marked at once, with the rule behind it. There are no videos.

Words in this module

Accounting equation

The accounting equation says that assets equal liabilities plus capital. It is always true.

Asset

An asset is something a business owns, or is owed: a van, money in the bank, or money that customers owe.

Balance brought down

The balance brought down is the figure an account starts a period with: the balance carried down from the period before.

Balance carried down

The balance carried down is written on the smaller side of an account, so that both sides add up to the same total.

Capital

Capital is what a business owes its owner: the money the owner put in, plus any profit left in the business.

Credit

Credit is the right side of an account. Liabilities, capital and income go up on the credit side.

Debit

Debit is the left side of an account. Assets and expenses go up on the debit side.

Double entry

Double entry means every transaction is posted twice: a debit in one account and a credit of the same amount in another.

Expense

An expense is a cost of running a business in a period, such as rent, wages or electricity.

Income

Income is what a business earns, mostly from sales. An income account goes up on the credit side.

Liability

A liability is money a business owes to someone else, such as a bank loan or an unpaid supplier bill.

T-account

A T-account is an account drawn as a letter T: debits on the left side, credits on the right side.

Trade payables

Trade payables is the money a business owes its suppliers for goods bought on credit. It is a liability.

Trade receivables

Trade receivables is the money that customers owe a business for sales made on credit. It is an asset.

Trial balance

A trial balance lists every account balance in two columns, debit and credit. If the bookkeeping is right, the totals agree.

Questions