Double entry bookkeeping 2024

This book is for anyone who is interested in learning double-entry bookkeeping properly! It focuses on the most common accounting operations that occur in business practice. Also suitable for current difficult practices–we analyse changes in the area of tangible and intangible assets, the new option of keeping accounts in a so-called functional currency or the newly introduced obligation to prepare and publish an income tax report and a sustainability report.

We will also briefly cover the approved consolidation package with changes effective from 1 January 2024, in particular the increase in the corporate income tax rate, the limitation of tax deductibility and the entitlement to deduct VAT for passenger cars, or the increase in the progressive taxation of natural persons. We also focus on the possibility of carrying back a tax loss or the rules for the payment of equity in accordance with the Business Corporations Act. The explanation begins with generally accepted accounting principles, with a detailed analysis of the basic building blocks of double-entry bookkeeping. This is followed by an analysis of accounting examples by account class, from tangible fixed assets, through inventories and receivables to equity accounts, costs and revenues. The examples are solved by posting to accounts, using historically used account numbers. The costs and revenues are accompanied by basic tax implications, such as the calculation of tax depreciation or the creation of allowance for doubtful accounts.

We pay great attention to the financial statements, the preparation of the balance sheet, the profit and loss statement and the notes. The book contains separate chapters with examples of the preparation of the statement of changes in equity and a number of examples of the preparation of the cash flow statement. Finally, the obligations of a legal entity after the preparation of the financial statements are discussed, i.e. the obligation to prepare an annual report and a report on relations between related parties, the approval of the financial statements by the general meeting and their publication. An important chapter is also the accounting for the payment of a share in profit and its tax implications.