Accounting Cycle

1. Adjusting Entries

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

2. Post-adjusted trial balance

3. Financial Statements

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

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

4. Source Document

4.1. -Cash Receipts

4.2. -Cheque Butts

4.3. -Purchases invoice

4.4. -Sales Invoice

4.5. -Utility Bills

5. Journal

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

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

5.3. Sales Journal- Record all credit sales

5.4. Purchases Journal- Record all credit purchases

5.5. General Journal- Record other entries

6. Ledger

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

7. Trial Balance

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