Module 01 · Chapter 1
Six topics covering the foundation of bookkeeping — from the accounting equation to your first bank reconciliation. Work through each topic in order, take the quiz, then move to the next.
Chapter 1 Topics
The accounting equation, double-entry system, debits & credits, accrual vs. cash, and key terms.
Start Topic →The 5 account categories, numbering system, and setting up a COA for any business type.
Start Topic →What the business owns vs. owes. Assets, liabilities, equity, and how to read the snapshot.
Start Topic →Revenue minus expenses. The P&L, gross profit, operating income, and the bottom line.
Start Topic →How cash moves. Operating, investing, and financing activities. Why profit \u2260 cash.
Start Topic →Matching your books to the bank statement. Step-by-step process and common discrepancies.
Start Topic →Complete these exercises after finishing all 6 topics to test your understanding.
Create a chart of accounts for a small bakery. Include at least 3 asset accounts, 2 liability accounts, 1 equity account, 2 revenue accounts, and 4 expense accounts. Assign account numbers using the standard ranges.
Record these transactions using double-entry bookkeeping:
For each, identify which accounts are debited and credited.
Given: Bank statement ending balance ₱45,000, book balance ₱42,500, outstanding checks ₱3,500, deposit in transit ₱1,000, bank fee not recorded ₱500. Find the adjusted book balance.