This document provides an introduction to accounting and Excel for an entrepreneurship project. It aims to teach basic Excel skills, explain how accounting works using key terms, and show how to make informed business decisions. It demonstrates how to enter data and formulas in Excel and how accounting tracks financial changes to items like purchases, sales, cash on hand, creditors, debtors, inventory, loans, and interest expenses. Examples are provided of various business transactions and how the related accounting entries would change.

1. Creative Cycle Online
Entrepreneurship Project
Session Three:
Introduction to Accounting
and Excel

2. Aims of the session
● Learn basic Excel skills
● Understand how Accounting works and learn the key
words used in spreadsheets.
● Make more informed business decisions using what
has been taught.
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT

3. What is Excel?
● Excel is a program used to organise and manipulate
data.
● It is possible to either enter some data in or enter a
formula in.
● It is very useful to check what happens when there
are changes in the data.
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT

4. How to use it?
● Entering data:
● For example, if you want to change the Paypal fees,
click on the corresponding cell (E25 in this case) and
enter the new number.
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT

5. How to use it?
● Entering a formula:
The cell G27, corresponding to total expenses. It has the
formula:
=E22+E23+E24+E25+E26+E27
(don’t forget the equal sign at the start!)
That way if any of the expenses changes, total expenses
changes automatically.
CREATIVE CYCLE ONLINE ENTREPRENEURSHIP PROJECT

6. What is Accounting?
● Accounting is the process of keeping financial
accounts.
● In the next few slides we will take a step by step
approach to gradually teach you the basics of
accounting.
● You will then go through an example question
similar to real life conditions.
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7. Accounting: What changes?
You spend £50.00 on pearls to make necklaces and
manage to sell all the necklaces that were produced
for £100.00.
⇒ Increase Purchases to £50
⇒ Increase Sales to £100
⇒ Increase Cash at Hand to 100-50=£50
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8. Accounting: What changes?
Instead of buying the pearls with cash, you buy them
on credit.
You haven’t yet received the money for a quarter of
the necklaces.
⇒ Increase Creditors to £50
⇒ Increase Debtor to 100*(¼)= £25
⇒ Increase Cash at hand to 50+50-25=£75
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9. Accounting: What changes?
Unfortunately, instead of selling all of the necklaces
made this year, you are left with unsold pearls worth
£10. As a result your sales are only £80 this year. Of
these £80 you are owed £15 .
⇒ Increase Closing Inventory to £10
⇒ Decrease Sales to £80
⇒ Change Cash in hand to £65
⇒ Change Debtors to £15
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10. Accounting: What changes?
You realise that you forgot to account for pendants
that you bought last year for £20 but didn’t manage
to sell. Fortunately you managed to get rid of them at
their face value (£20).
⇒ Sales increase by £20 to£100.
⇒ Opening inventory increases to £20.
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11. Accounting: What changes?
Last year you made the acquisition of a machine that
allows the making of necklaces faster. It cost £500
which you paid for entirely by borrowing for 10 years.
⇒ Increase machine to £500
⇒ Increase loans to £500
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12. Accounting: What changes?
You have to pay interest on your loan. The rate is 4%
per year. You pay it using the bank as an
intermediary. You also decide to transfer £30 of your
cash at hand to your bank account.
Interest expense increase by 0.04*500= £20
Cash at hand: 65-30= £35
Cash at bank: 30-20= £10
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