This module provides a broad introduction to accounting study at university level. It covers the fundamentals of financial and management accounting as well as the essential skills, knowledge and ethics required to be a professional accountant. The module will also be suitable if you are in a general management position, as the accounting material covers measuring management performance and improving financial planning, control and decision-making. You'll gain an understanding of financial reports through their preparation, based on the double-entry bookkeeping system, which is essential for the management of any organisation.
Proper accounting is crucial for the prosperity and survival of any organisation. Our complex economic system depends on accurate, trustworthy and relevant financial records and reports. While this module focuses on the accounting required for a sole trader, the skills and knowledge you'll learn are of central importance for accounting, and managing in any organisation, whether for-profit, not-for-profit or governmental.
Unit 1: Introduction to accounting
You'll begin by being introduced to the scope and structure of the module and the purpose of bookkeeping and accounting, as well as the skills, knowledge and ethics required for accounting.
Unit 2: Essentials of double-entry bookkeeping
You'll be introduced to the key principles of the double-entry bookkeeping system, which is based on the accounting equation.
Unit 3: Accruals accounting explored
You'll develop an understanding of recording a wide range of transactions through ledger accounts.
Unit 4: Control over the ledgers
This introduces the books of original entry that underpin ledger accounts as well as the different ways that ledger accounts are monitored, controlled and corrected.
Unit 5: Preparing financial statements
You'll revisit end-of-period adjustments and how they are used to prepare financial statements. You'll learn how to derive useful information from incomplete records and how to prepare manufacturing accounts.
Unit 6: Essentials of cost and management accounting
You'll be introduced to the basic concepts and principles of management accounting, including cost analysis, accounting control systems and cost bookkeeping. You'll also cover the differences between manual and computerised accounting systems.
Unit 7: Management accounting applications
You'll consider some important management accounting applications, applying the concepts and principles of management accounting introduced in Unit 6.
Unit 8: Preparing for the exam
The final unit is designed to help you revise the module teaching materials and prepare for the end-of-module examination.
There will also be a tutorial on incomplete records, and you’ll have access to video tutorials on suspense accounts, bank reconciliations and control account reconciliations.
There are no formal entry requirements for this module. What is required is a commitment to developing already existing basic skills in numeracy and literacy. You are also expected to have a basic level of computer literacy and a broad interest in business and management.
If you have any doubt about the suitability of the module, please speak to an adviser.
You’ll get help and support from an assigned tutor throughout your module.
They’ll help by:
Online tutorials run throughout the module. While they’re not compulsory, we strongly encourage you to participate. Where possible, we’ll make recordings available.
Course work includes:
You’ll also be provided with printed module books and have access to a module website, which includes:
A non-programmable calculator. Some type of spreadsheet software is useful but not essential.
The OU strives to make all aspects of study accessible to everyone, and this Accessibility Statement outlines what studying B124 involves. You should use this information to inform your study preparations and any discussions with us about how we can meet your needs.
To find out more about what kind of support and adjustments might be available, contact us or visit our Disability support website.
Fundamentals of accounting starts once a year – in October.
This page describes the module that will start in October 2026, when we expect it to start for the last time.
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