recording income and expenses

recording income and expenses

unit B11

At the end of this lesson, you will be able to:

• Explain why we are studying this unit

• Define basic terms

• You may also be able to:

• use accounting terms confidently

• select the format needed for recording expenses and income

Why we are studying this unit

at the end of this unit, you will be able to keep records for your own small business - dog walking, baby sitting,

You can also use these methods for keeping track of your personal accounts

Accounting terms

• Accounting is the process of keeping financial records. For example: I need to do my personall accounting this afternoon so I know how much money I actually have.

• Expendature is an expense, anything you spend money on or that costs you money. For example: In need to consider the insurance expendature before I buy a car.

More Accounting terms

• Income is any money you bring in. This could be wages, gifts, donations, or rent received to name a few. For example: I receive income from my wages and from sales of items on Etsy.

• Entry is when you write an expenditure or income in your accounts. For example: I double checked my income entries in my accounts.

More Accounting Terms

• Spreadsheet is an Excell document that we will use to show your income and expenditures

• Ledger is a book or other collection of financial accounts of a particular typ