Accounting Made Easy

Part 2 is here! 📊💡

Many of you requested terms like Book Value, NOCF, and WDV, so I added them along with other important finance and accounting concepts.
Understanding these terms will help you analyze financial statements, evaluate business performance, and communicate more confidently in accounting and finance.
Which term should I explain in Part 3?

📘 Cash Flow Statement (Indirect Method) – Solved Example
A clean and professionally formatted A4 solution for the Michel Barnier Company Cash Flow Statement. This example demonstrates the preparation of a Statement of Cash Flows using the Indirect Method, including operating, investing, and financing activities.
✔️ Operating Activities
✔️ Investing Activities
✔️ Financing Activities
✔️ Net Increase in Cash Reconciled
✔️ Exam & Assignment Ready Format
Perfect for accounting students, educators, and anyone learning financial statement analysis.

Statement of Profit or Loss 📘

Under IAS 1, businesses present their financial performance through a Statement of Profit or Loss. This statement shows how revenue is transformed into profit after deducting the cost of sales, operating expenses, finance costs, and taxes.
Understanding this statement is essential for analysing profitability and making informed business decisions.
Save this note for revision and future reference. 📚✍️

Partnership Profit Sharing Ratio

When partners agree to share profit or loss according to their capital contributions, the profit-sharing ratio is calculated based on the amount invested by each partner.
Example:�A = Rs. 240,000�B = Rs. 480,000�C = Rs. 120,000
Profit Sharing Ratio = 2 : 4 : 1
💡Remember: Always simplify the capital amounts to their lowest ratio before distributing profit or loss.

Basic Accounting Terms: Debtors vs Creditors 📘

Understanding the difference is simple:

🔹 Debtors – People or businesses who owe money to the business because goods or services were sold to them on credit.

🔹 Creditors – People or businesses to whom the business owes money because goods or services were purchased from them on credit.

💡 Easy Tip:
Debtors owe us. Creditors are owed by us.

📘 Class Activity: Journal Entries for Sales, Purchases & Returns
notes covering key accounting transactions with full questions, structured journal entries, and a complete memo for practice and revision.

📊 Financial Ratios Made Easy — Key formulas every accounting student should know for analysis, exams, and revision.

📘 Basic Accounting

Master the fundamentals in simple terms:
Assets, Liabilities, Equity, Revenue, and more — all in one place.

Perfect for students and beginners 💡
Save this for revision and share with others!

General ledger and T account ✨
From journal entries to ledger balancing — step-by-step
💡 Master the basics, one example at a time.