Learning Accounting/Bookkeeping Concepts is Difficult Enough Already!

The task of learning bookkeeping is both difficult and intimidating. The Concepts of generating financials (Income Statement & Balance Sheet) is already both difficult and intimidating to understand, without all the math. 

  • Double-Entry Accounting: (Debits=Credits)
  • Balance Sheet: (Assets = Liabilities + Equity)
  • Income Statement: (Permanent & Temporary accounts)
  • Bookkeeping Cycle

Learning bookkeeping comes with a X2 or X3 factor of added difficulty, The Math!

Possessing very curious brain, usually requiring my understanding of how something works. For those who are curious of how the (Transaction Journal, and T-Accounts) is a powerful tool, to supercharge the learning by removing most of the math and reducing math mistakes.

The student doing so much math, while learning both slows down the learning process, it adds math mistakes, math errors, and re-checking of the math adds much more time to learn an already difficult concepts.

Balance (Debits = Credits)

Double-Entry accounting first rule: Every transaction must be balanced. Programmed an Audit Control to keep all transactions equal. Any incorrectly entered, making it unbalanced, will be highlighted in Audit Control Cells on top of the Transaction Journal.

Definition of Sumif’s

SUMIF: For a single condition.

sum_range: The cells containing the numbers you want to add (required first argument).

SUMIFS: For multiple conditions; the sum_range is the very first argument, followed by criteria pairs. 

criteria_range1: The first range to check for your first condition (required).

Sumifs “Criteria”

Demonstrations:

  • Criteria: Cash
  • Criteria: Cash & Cash Equivalents
  • Criteria: AR Accounts Receivable
  • Criteria: AP Accounts Payable

Criteria: “Cash”

“Cash” is single account with a natural Debit Balance.

Criteria: “Cash & Cash Equivalents”

“Cash & Cash Equivalents” is a Parent account with 9 Sub Accounts and natural Debit Balance.

Criteria: “AR Accounts Receivable”

“AR Accounts Receivable” is a Parent account with 6 Sub accounts, natural Debit Balance.

Criteria: AP Accounts Payable”