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Accounting Cycle by Mind Map: Accounting Cycle

1. Source Document

1.1. -Cash Receipts

1.2. -Cheque Butts

1.3. -Purchases invoice

1.4. -Sales Invoice

1.5. -Utility Bills

2. Journal

2.1. Cash Receipts Journal- Record all money reiceived by business

2.2. Cash Payment Journl- Record all money paid by business

2.3. Sales Journal- Record all credit sales

2.4. Purchases Journal- Record all credit purchases

2.5. General Journal- Record other entries

3. Ledger

3.1. All Transaction of similar signification are group together in T-account.

4. Trial Balance

4.1. To make sure that total "Debits" are equal to total "Credits".

5. Adjusting Entries

5.1. Making adjusting entries such as errors,accruals and payments

6. Post-adjusted trial balance

7. Financial Statements

7.1. a. Statement of profit or loss and other comprehensive income- Show all the income and expenses for an accounting period.

7.2. b. Statement of financial position-Show ths list of assets (wht business own) and the equities and liabilities.