AFM: Concepts and Practice · Part A: Accounting Principles and Processes

Chapter 2: Book-keeping: journal, cash book, subsidiary books, ledger

Double entry and its rules, and how a month’s transactions move from the first books to the ledger.

Open Chapter 2 in the e-book The book and its prices

Buyers of the e-book, or of the print copy, which includes it, read the whole chapter. Everyone can read the free sample, pages 1 to 24 of the e-book.

In this chapter

2.1Double entry and the rules of debit and creditp. 17
2.2The journalp. 18
2.3The cash bookp. 19
2.4Subsidiary books and the petty cash bookp. 20
2.5The ledger: posting and balancingp. 21
Exam traps and quick checksp. 22
Practice: 16 questions in three roundsp. 23
Answers, with every wrong option explainedp. 25
Make it stickp. 27
Chapter 2 on one pagep. 28

Corrections and updates

None for this chapter so far. Every correction to the book, and any rule that changes after its date, is listed on the errata page.