Bookkeeping involves routinely recording business transactions, while accounting provides financial analysis of an organization's performance. Both processes involve keeping accurate records of financial activities in books or ledgers. Studying principles of accounts offers advantages like career preparation and being well-versed in concepts all organizations utilize. While a degree is preferable, accounting qualifications can be obtained through work experience and passing exams, with training programs available for both university graduates and non-graduates. The subject requires diligence, attention to figures, a willingness to learn, and critical thinking.

1. Introduction to
Principles of Accounts

2. What is
Principles of Accounts ?
The modules cover:
♦ Bookkeeping
and
♦ Accounting
for Sole Traders
(Partnerships and Limited
Companies)

3. What is
Bookkeeping & Accounting ?
♦ Bookkeeping
– recording the
transactions
of an organization
♦ Accounting
– analysis of the
performance
of an organization

4. What is Bookkeeping 1 ?
♦ You have £10.
♦ Your mother/father/aunt
gives you £100 because
today is your birthday.
♦ You go with your friends
to celebrate your birthday.
♦ You have £15 left after the
celebration.
♦ How much money did you
spend?
♦ In businesses, all of this ‘Books’ would be kept
would be recorded ! of all your (financial)
activities !!

5. What is Bookkeeping 2 ?
♦ the keeping of Accounts
♦ the keeping of accounting
records
♦ Accounting records are kept
in ‘Books’ or ‘Ledgers’
♦ In businesses all transactions
are recorded
♦ Book-keeping is simply
keeping the records of
business transactions Records are kept of all
the (financial) activities

6. What is Bookkeeping 3 ?
♦ record important, useful information.
♦ the information must be recorded
accurately
♦ it is routine Book-keeping is
often known as
♦ It is recording
‘Double entry’
♦ It is ‘accounting for’ business
transactions
♦ Examples of transactions:
♦ sale/purchase of goods/services
♦ every sale, etc., is shown Accounts are kept of all
in money the (financial) activities

7. What is Accounting 1?
1
♦ Providing financial information
in an organization
– objectively
– consistently
– professionally
– conservatively valued
♦ to enable management to
perform three functions
– recording
– analysis
– control

8. What is Accounting 2?
2
♦ Using financial information to analyse
the performance of management
of (and inside ) an organization
– objectively
– consistently
– professionally
– with reliable techniques for
internal management
control
– and comparing overall performance of
the organisation
– with (for example) other organizations

9. What is Accounting 3?
3
♦ Obtaining finance (capital) for
management of an
organization
♦ Forecasting
management/departmental/
organizational performance
♦ Checking actual performance
against planned/forecasted
performance
♦ Auditing claims (claimed
performance) of organizations
♦ etc.

10. What is
Bookkeeping and Accounting?
Accounting
♦ Accounting is
– very business-like
– very professional
♦ You must do/be the same
♦ Keeping accounts:
– keeps checks on customers
and suppliers
– leads to preparation of
overall, summary statements
♦ These Financial Statements are
information to the business.

11. What is
Bookkeeping and Accounting?
Accounting
♦ We cannot keep Accounting records
– without documents (proof of transactions)
– sales, purchases, banking (payment and receipts)
documents
♦ these are source documents
♦ this documentary evidence:
– tells/shows us the actual transaction
– shows what has happened
♦ Accounting records:
– show the impact of these transactions on a business
– show what these transactions mean to a business

12. Advantages of studying this
subject
♦ To be well-prepared for
future career development
♦ All managers need
accounting
♦ Easier to find a job
♦ All organizations need
accounting
♦ Closely related to daily life.

13. Do I have to be a graduate?
♦ You don’t have to be a graduate to become
an accountant, though a degree is preferable.
The vast majority of those taking the broad-
based ACA (Associated Chartered
Accountant) exam – the UK’s best-
recognised accountancy qualification – were
graduates. ACA entry level requirements
include two A-levels and three GCSEs,
including good grades in maths and English.

14. ♦ However, an increasing number of
organisations are willing to take on school
leavers who fulfil the necessary criteria, and
who are then trained in-house or by an
outside agency.
♦ There are more than 2,000 organisations
providing authorised training in the UK.
The size or influence of the accountancy
firm that trains you is irrelevant; the final
qualification is the same. Nearly 40 per cent
of trainees work for a business with 20 or
fewer partners.

15. ♦ Training takes a minimum of three years
and requires that you complete 450 days
of technical work experience and pass
both examination stages – with 11 exams
in total.
♦ If you're training as you work, your
employer will pay for your course, as well
as providing a modest salary for which
you will be expected to help in the office
in a variety of areas, including general
admin.

16. Possible Future Career
Development
A ccountant
(A C C A / C I M A / C P A )
U n iv e r s it y G r a d u a t e s N o n - U n iv e r s it y S t u d e n t
P a s s t h e p r o f e s s io n a l e x a m s P a s s t h e p r o f e s s io n a l e x a m s
w it h E x e m p t io n s N o e x e m p t io n s

17. Possible Future Career
Development
Manager
(Business, Public Sector, etc)
University Graduates Non-University Student
Pass other management exams Pass other management exams
with Exemptions No exemptions

18. Exam (Modules) to be
Modules
completed in the two years
Year One Year Two
ACCN 1 ACCN 2
Introduction to Financial & Management
Financial Accounting Accounting
ACCN 3 ACCN 4
Further Aspects of Further Aspects of
Financial Accounting
Management Accounting

19. Criteria for studying and
succeeding in this subject
♦ Diligent - hard work
♦ Sensitive to figures
(not necessarily
good at Math.)
♦ Willing to learn
♦ Willing to think critically

20. Any Questions ?