Preparation of

source document

Financial statement
Books of
 Trading account
 Profit & loss a/c original
 Balance sheet Entry

Adjusting The ledgers

entries

Trial balance

Categories of Accounts Types of Accounts

A – assets
Personal – debtors & creditors
L – liabilities
I – income Real – assets & liabilities
C – capital Nominal – revenue & expenses
E – expense
NB. Journalizing and posting to ledgers are done through out the
period, whereas the rest of the cycle is done at the end of a period .