Book-keeping, the trade I learned at the tender age of 18 when I joined a London firm of Chartered Accountants who were prepared to train me as an Audit Clerk.  In the three or four years I was with them I learned a lot about keeping records and working with detail and accuracy, something which has stood me in good stead over the intervening years.  Also I should add that there was not, as now, any computer involvement – they did not exist.  After the four years with the Accountants I went into the commercial side which, in the main, I enjoyed.

 The idea of this article is to give any would-be book-keeper an insight as to what can be expected of them, though firstly they should decide if they wish to take ‘Articles’ with a firm of Chartered Accountants or go straight into the commercial side as a member of an Accounts Department.  If you wish to take ‘Articles’ then the suggestion I would make would be for you to approach a Local firm of Accountants to see if they can take you on or perhaps offer you further advice on how to pursue this course.  If, on the other hand, you decide to go into the commercial side then it would be an idea to find a college who can provide a course on Book-keeping either as an ‘Evening Course’ or, if you are fortunate enough, a ‘Day Course’, and – it is in this respect that I shall try and give you an idea of what you can look forward to. 

 Briefly put, book-keeping is the recording of Income and Expense incurred in the day to day running of any business, irrespective of size, with the intention of showing whether or not that business is making a profit or loss, and also to provide accounts for H.M. Inspector of Taxes.

 Before I begin, the one thing to remember here is that Suppliers Invoices which include V.A.T. must bear the Suppliers V.A.T. Registration Number, and similarly with Sales Invoices to your Clients, if your Company is registered then your Company’s V.A.T. Registration Number must be shown on your Invoices.

 The assumption in this article is that the reader will be using ‘Manual Accounts’ and not a Computer, in which case the best place to begin is with the books which would be required, these are:-

      1)    A ‘Purchase Day Book’

      2)    A ‘Sales Day Book’

      3)    A ‘Cash Book’

      4)    A’ Petty Cash Book’

These are referred to as the ‘Books of Prime Entry’ and, therefore, you would also need:

      5)    A ‘Purchase Ledger’

      6)    A ‘Sales Ledger’

      7)    A ‘Nominal Ledger’

It is from your Nominal Ledger that your ‘Final Accounts’ are made up.

 In following posts I shall attempt to give, in brief and concise detail, your methods of entry and how you should follow through an action.