Professional Documents
Culture Documents
Example of Non-Current Asset
Example of Non-Current Asset
Increase Decrease
Assets Debit Credit
Liabilities Credit Debit
STEPS IN ACCOUNTING CYCLE:
1. Journalizing – journalize the economic
transactions and events
2. Posting – post the journal entries in number 1 to
the general ledger
3. Trial Balance – prepare the trial balance from the
general ledger
4. Adjusting – adjust the ledger balances
5. Financial Statement – make income statement
and balance and balance sheet from the adjusted
trial balances
6. Closing – close or transfer the income and
expense accounts to “income and expense
summary account” and the latter account to
owner’s equity
7. Posting Closing Trial Balance – make a trial
balance of all assets, liabilities, owner’s equity.
8. Reversing – reverse some adjusting entries to
prepare them for a new accounting period
e. Other Documents
are dependent on
the nature of the
business