Accounting basics
The accounting equation, journal entries, chart of accounts, bank reconciliation
What you will find in this section
This section starts from the basics: the accounting equation and double entry, then building a chart of accounts, the key journal entries, and the difference between the cash and accrual bases, ending with bank reconciliation step by step.
The accounting equation and double-entry bookkeeping, with examples from a real store
How assets stay equal to liabilities plus equity after every transaction, tracing five transactions of an auto parts store with figures and journal entries.
Accounting basicsChart of accounts: how to build one for a trading business (levels, numbering, sample codes)
A practical way to design a flexible chart of accounts for a trading business: the number of levels, the numbering logic, and a ready table of codes to build on.
Accounting basicsBasic journal entries: 10 entries every accountant needs
Ten entries that recur daily in any Saudi trading business, from cash and credit sales to salaries and depreciation, each in a debit and credit table.
Accounting basicsCash basis vs accrual basis: the difference and its effect on profit
A December example for a services company shows how the cash basis produces a loss while the accrual basis shows a large profit, and why the standards require the latter.
Accounting basicsBank reconciliation step by step
How to reconcile the bank balance in your books with the bank statement: outstanding checks, deposits in transit, fees and errors, with a solved example and the adjusting entries.