Page 16 - Book-keeping for Secondary Schools Student’s Book Form One

Book-Keeping for Secondary Schools

(ii) Single-entry Book-keeping: Single- benefits to the business. These
entry book-keeping is a simple and include cash, inventory, equipment,
straightforward method primarily and property.
used by small businesses or individuals (ii) Liabilities: Debts or obligations of
with relatively few repetitive and a business to external parties, such
uncomplicated financial transactions. as loans, trade and other payables,
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In this method, only a single entry is and accrued expenses. The business
made for each transaction, typically in has duty to settle such obligations
a revenue or expense journal or a cash through economic resources, for
book. It records income and expenses, example cash.
but it does not track individual accounts
for assets and liabilities. Single-entry (iii) Expenses: Costs incurred by a business
book-keeping is used for basic record- in the process of generating revenue,
keeping purposes such as tracking cash including salaries, rent, utilities,
receipts and payments. These two types supplies, and other operating expenses.
of Book-keeping methods differ in (iv) Debit entry: An entry on the left side
complexity and the level of financial of an account, representing an increase
details they provide. While single- in assets or expenses or a decrease in
entry Book-keeping is suitable for liabilities or revenue.
small businesses with straightforward (v) Credit entry: An entry on the right side
transactions, double-entry Book-keeping of an account, representing an increase
is the standard method used by most in liabilities, or revenue or a decrease
businesses due to its accuracy, reliability, in assets or expenses.
and ability to provide a comprehensive
financial overview. (vi) Double-entry: A system of book-
keeping that records each financial

Common terms used in Book-keeping transaction with equal and opposite
Book-keeping includes the recording and entries on two different accounts.
organisation of financial transactions in (vii) Ledger: is a book or digital record
a systematic manner. The recording and in which financial transactions are
organisations of financial trasactions recorded. It is a fundamental element
involve the use of various terms. These of book-keeping used in tracking,
terms provide the basic understanding of organising, and summarising financial
the concepts and terminologies used in information.
Book-keeping. The following are some
basic terms used in book-keeping: (viii) Journal: The book or electronic record
(i) Assets: Resources controlled by a where financial transactions are initially
business owner that have economic recorded in chronological order.

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Student’s Book Form One

Book Keeping Form 1 New 2024 FINAL.indd 8 18/10/2024 10:14