Accounting for Business: An Introduction by
Marley & Pedersen
For a unique and practical skills building approach to teaching students
introductory accounting concepts, take a fresh look at Marley and Pedersen:
Accounting for Business…
Accounting for Business offers an integrated business development model. It
simulates how to build an accounting system for commercial businesses ranging
from the smallest enterprise to larger trading businesses which engage in credit
The underlying principle of this text is that accounting consists of both the
recording and control of business transactions. Therefore the study of
accounting needs to examine these concepts as a whole rather than as separate
Below is a chapter outline, which identifies where appropriate the unique
approach the authors have taken.
This sets the scene for the function of accounting and the role of the accountant
in the modern world. Topics such as accounting principles, the historical
development of accounting, the accounting profession (including professional
accounting bodies) and applying ethical principles are discussed. This chapter
provides the student with an overview of the accounting environment in order to
gain an awareness of the “big picture” of accounting in contemporary society.
This chapter discusses accounting fundamentals including the different types of
accounts and accounting rules. In addition it presents a sample comprehensive
chart of accounts that is used as a basis for the illustrative examples and
questions that follow in the book.
This chapter discusses design considerations of business accounting systems
and includes a comprehensive analysis of the implementation of GST within
Accounting for Business adopts its unique philosophical direction from
Chapter 4 - Recording Cash Transactions. All businesses, no matter how
small, will deal with cash transactions and therefore they must maintain as a
minimum a cash receipts journal, a cash payments journal and a general journal.
Initially, a small service business which is not GST registered is introduced. The
system is then expanded to include trading businesses which are GST registered
and then expanded again to discuss the necessary changes to these journals for
businesses which have engaged in credit transactions. Finally, possible
variations to the cash journals are discussed (for example, where the business
gives and receives settlement discounts).
In all chapters in the book equal emphasis is given to both T and Columnar
ledger formats. This is necessary as ultimately students need to feel completely
comfortable with both formats – the columnar format being the industry
(computer) format whereas the T format is often the preferred format for teaching
in academia (where many TAFE accounting graduates will eventually pursue
Chapter 5: Controls over cash
This chapter discusses the control (reconciliation) processes needed to ensure
the complete and accurate recording of cash transactions discussed in Chapter
4. Placing this chapter immediately after the recording process emphasises the
integration of the recording and control of these types of transactions.
Chapter 6: Recording of other transactions
This chapter describes the non-cash transactions which are commonly
undertaken by businesses and which are usually recorded in the general journal.
Chapter 7: Recording Credit Transactions
This chapter examines the necessary changes to an accounting system where
the proprietor wishes to increase the level of sales by offering credit terms to its
customers and conserve cash flow by negotiating credit terms with its suppliers.
This is often the next logical step a proprietor will consider to grow their business
after the initial establishment phase has been completed.
Chapter 8: Control of Credit Transactions
This chapter discusses the controls (reconciliations) needed for the complete and
accurate recording of credit transactions covered in Chapter 7. Placing this
chapter immediately following the recording process emphasises the integration
of the recording and control of these types of transactions.
Chapter 9: End of period adjustments
This chapter discusses the adjustments necessary in order to properly match
revenues and expenses to accurately calculate net profit. General journal entries
to record accruals and prepayments, other balance day adjustments and closing
entries for service and trading businesses are covered. Finally, reversing entries
for accruals and prepayments are discussed.
Chapter 10: Preparation of End-of-Period Reports
This chapter examines the Income Statement and the Balance Sheet for both
service and trading businesses. Common classifications of revenue and
expenses in the income statement and assets and liabilities in the balance sheet
are discussed. Various formats for both the income statement and balance sheet
are presented. The ten column worksheet is then introduced to provide the
student with an alternative method of preparing financial statements without
formally closing the ledger (for example, when interim monthly financial
statements are to be prepared.)
Chapter 11: The Complete Accounting Process
This chapter provides a summary of the accounting procedures examined in
chapters 4 to 10 through a comprehensive illustrative example. Also included in
this chapter are comprehensive case-study and business scenario questions that
require the completion of journals, ledgers, trial balance, schedules and financial
statements including the implementation of accounting controls (reconciliations).
Chapter 12: Recording and Control of Property Plant and Equipment
This chapter examines the recording of transactions for the purchase,
maintenance and disposal of property, plant and equipment for both GST and
non-GST registered businesses and the establishment of controls required for
the protection of those assets. Included in the discussion are the various
methods for calculating depreciation, disposal options and profit/loss on sale
Chapter 13: Recording and Control of Payroll
This chapter discusses the recording of payroll transactions and the controls
necessary to ensure such transactions are recorded completely and accurately.
All relevant payroll records are introduced including time records, pay
summaries, earnings records and PAYG tax tables. Also covered are the various
methods for payment of wages to employees.
A final note about the authors:
Stephen Marley has been teaching in TAFE for 22 years, a Chartered
Accountant for 28 years and has continuously operated an accounting practice
advising business clients for 20 years.
Jeff Pedersen is an educator in finance in TAFE Queensland experienced in
course delivery, program coordination and curriculum development. Jeff has
been an active resource developer both inside the open learning arm of TAFE
Queensland and independently as a writer and author in the finance and
accounting field. As a text book author and online resource developer Jeff has
endeavoured to bring the realism of business activity into the learning sphere of