[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-663505-105":59,"doc-detail-663505-en":130},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":123,"head_meta":125,"extra_data":127,"updated_unix":129},105,"en","bookkeeping-fundamentals-lesson-1-of-6-double-entry-bookkeeping","BOOKKEEPING FUNDAMENTALS - Lesson 1 of 6 - Double-Entry Bookkeeping","","Double-entry bookkeeping fundamentals explain why every transaction must be recorded in at least two places, ensuring that accounts remain perfectly balanced. The lesson covers the accounting equation Assets = Liabilities + Equity and introduces debits and credits as the mechanism that affects specific account sides. Clear debit/credit rules and four worked examples show how debits and credits must total correctly after each transaction. Subsequent lessons begin outlining balance sheet structure, including assets and liabilities, and how liquidity and working capital are assessed.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/bookkeeping-fundamentals-lesson-1-of-6-double-entry-bookkeeping/663505/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/bookkeeping-fundamentals-lesson-1-of-6-double-entry-bookkeeping/663505.png","ImageObject",300,407,{"name":92,"@type":93},"Theodore","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-30","2026-10-28",true,{"@type":102,"interactionType":103,"userInteractionCount":34},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"Why does double-entry bookkeeping help keep accounts balanced?","Question",{"text":112,"@type":113},"Because every financial transaction is recorded in at least two places. This captures both sides of the movement of money, so if entries are recorded correctly, debits and credits balance automatically.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"What is the accounting equation and why must it balance?",{"text":117,"@type":113},"The equation is Assets = Liabilities + Equity. It must always balance, and correct double-entry recording functions as a built-in self-check.",{"name":119,"@type":110,"acceptedAnswer":120},"How do you interpret the current ratio in a business’s financial health?",{"text":121,"@type":113},"The current ratio is Current Assets ÷ Current Liabilities. Above 1.5:1 suggests comfort, below 1:1 is a warning, and below 1.0:1 indicates a danger zone where liabilities exceed assets.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},663505,1793228763,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":34,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":29,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":129,"read_time":143},7971461740886,"https://ap-avatar.wpscdn.com/davatar_3d24733baf745e90a7e4bdd5f77d97b2","● BOOKKEEPING FUNDAMENTALS · LESSON 1 OF 6  \nDouble-Entry Bookkeeping  \nThe golden rule that keeps every set of accounts perfectly balanced.  \nWhy this matters  \n\n| Double-entry bookkeeping is the foundation of all accounting. Every financial transaction is recorded in at least two places because money never appears from nowhere or vanishes. It always moves from somewhere to somewhere and double-entry captures both sides every time.\u003Cbr>The accounting equation |\n| --- |\n| Everything in bookkeeping rests on one equation: Assets = Liabilities + Equity\u003Cbr>This must always balance. If you record every transaction correctly using double-entry, it will balance automatically: that is the built-in self-check.\u003Cbr>Debits and credits—the basics |\n| ● Every transaction has two sides: a Debit (Dr) and a Credit (Cr)\u003Cbr>● Debits and credits are not 'good' or 'bad' -they simply describe which side of an account is affected\u003Cbr>● Total debits must always equal total credits-if they don't, something has been missed\u003Cbr>● DEAD CLIC: Debits increase Drawings, Expenses, Assets-Credits increase Capital, Liabilities, Income\u003Cbr>Four worked examples |\n\nEach transaction below shows the debit and credit entries side by side.  \n\n| Transaction | Debit (Dr) | Credit (Cr) |\n| --- | --- | --- |\n|  |  |  |\n| Owner puts £5,000 cash into business | Bank account (Asset) £5,000 | Owner's capital (Equity)£5,000 |\n|  |  |  |\n| Buy office supplies for £200 cash | Supplies expense (P&L) £200 | Bank account (Asset) £200 |\n|  |  |  |\n| Take out a £10,000 bank loan | Bank account (Asset) £10,000 | Loan payable (Liability)£10,000 |\n|  |  |  |\n|  |  |  |\n| Earn £800 from a client—cash | Bank account (Asset) £800 | Service revenue (Income)£800 |\n|  |  |  |\n\nKEY RULE TO REMEMBER  \nAfter every transaction, check that your debits equal your credits. If they don't balance, you've either missed an entry or recorded an amount incorrectly. This self-checking property is what makes double-entry so powerful.  \n● BOOKKEEPING FUNDAMENTALS · LESSON 2 OF 6  \nThe Balance Sheet: Assets  \nTangible assets and current assets—what the business owns and how it's recorded.  \nWhy this matters  \n\n| Assets are things that the business owns. On the balance sheet they are split into two groups: non-current (fixed) assets, which the business holds for more than a year and current assets, which will convert to cash within 12 months. Understanding the difference tells you a great deal about how a business is structured.\u003Cbr>Tangible (Fixed) Assets |\n| --- |\n| Tangible assets are physical items owned and used by the business over many years to generate income. They appear on the balance sheet at their original cost, then are gradually reduced each year through depreciation because they wear out or become outdated over time.\u003Cbr>Examples of tangible assets |\n\n\n| Asset type | Examples | Depreciated? |\n| --- | --- | --- |\n|  |  |  |\n| Buildings | Factory, office, warehouse | Yes |\n|  |  |  |\n| Land | Business premises land | No—never depreciates |\n|  |  |  |\n| Machinery | Production equipment, tools | Yes |\n|  |  |  |\n| Vehicles | Delivery vans, company cars | Yes |\n|  |  |  |\n| Computers | Hardware, servers, office tech | Yes |\n| Current assets—listed in reverse liquidity order (how quickly they can become cash) |  |  |\n\n● 1. Inventory / stock—goods held for sale (slowest to convert to cash)  \n● 2. Trade debtors—money owed by customers (credit sales not yet paid)  \n● 3. Prepayments—expenses paid in advance, e.g. insurance or rent  \n● 4. Bank—money held in the business bank account  \n● 5. Cash—physical notes and coins (most liquid of all)  \nKEY RULE TO REMEMBER  \nLand is the one tangible asset that is never depreciated: it does not wear out. Every other tangible fixed asset is depreciated. The order of current assets matters too: listing them from slowest to most liquid helps readers assess how quickly the business could raise cash in an emergency.  \n● BOOKKEEPING FUNDAMENTALS · LESSON 3 OF 6  \nThe Balance She","cbCaii2WPH63Qyaa","https://ap.wps.com/l/cbCaii2WPH63Qyaa","pdf",415460,"English","# Double-Entry Bookkeeping\n## Why this matters\n## The accounting equation\n## Debits and credits—the basics\n## Four worked examples\n# The Balance Sheet: Assets\n## Why this matters\n## Tangible (Fixed) Assets\n## Current assets\n## Key rule to remember\n# The Balance Sheet: Liabilities\n## Why this matters\n## Current liabilities\n## Long-term liabilities\n## Working capital and the current ratio","[{\"question\":\"Why does double-entry bookkeeping help keep accounts balanced?\",\"answer\":\"Because every financial transaction is recorded in at least two places. This captures both sides of the movement of money, so if entries are recorded correctly, debits and credits balance automatically.\"},{\"question\":\"What is the accounting equation and why must it balance?\",\"answer\":\"The equation is Assets = Liabilities + Equity. It must always balance, and correct double-entry recording functions as a built-in self-check.\"},{\"question\":\"How do you interpret the current ratio in a business’s financial health?\",\"answer\":\"The current ratio is Current Assets ÷ Current Liabilities. Above 1.5:1 suggests comfort, below 1:1 is a warning, and below 1.0:1 indicates a danger zone where liabilities exceed assets.\"}]","BOOKKEEPING FUNDAMENTALS - Lesson 1 of 6 - Double-Entry Bookkeeping | PDF",15]