Completion of Accounting Cycle

Trial Balance
Adjustments
Financial Statements
1- Income Statement
a. Incomes (Revenues)
b. Expenses (Expenditure or spendings)
c. Profit or Loss
2- Balance Sheet
a. Assets
i. Current Assets
ii. Fixed Assets
b. Liabilities
i. Current Liabilities
ii. Long term Liabilities
c. Capital
3- Statement of Owners Equity
a. Closing Capital calculations
Worksheet
Two types of worksheets
1- Ten column worksheets
a. Trial Balance (2 Columns)
b. Adjustments (2 Columns)
c. Adjusted Trial Balance (2 Columns)
d. Income Statement (2 Columns)
e. Balance Sheet (2 Columns)

2- Eight column worksheets

a. Trial Balance (2 Columns)
b. Adjustments (2 Columns)
 c. Adjusted Trial Balance (2 Columns) N/A
d. Income Statement (2 Columns)
e. Balance Sheet (2 Columns)

Statement of Owners Equity

Capital at the beginning (Trial Balance) 10,000
Add: Additional Capital introduced during year 0.00
Add: Profit (Income Statement) OR 2,860
Less: Loss (Income Statement)
Total Capital 12,860
Less: Drawings (Trial Balance) (Contra Capital AC) (500)
Capital at the end (this amount will be reported to Balance sheet) 12,360

Worksheet
Trial Balance and adjustments leads to
adjusted trial balance.
Debit and Debit  ADD
Credit and Credit  ADD
Debit and Credit  LESS
With the help of above rule the final amount will be debited or
credited by viewing the bigger amount in debit or credit in the trial
balance and adjustment columns respectively.

After completing the adjusted trial balance, the following amounts

were shifted to;
All assets, liabilities and capital amounts will be transferred to Balance Sheet
All expense and incomes will be shifted to Income Statement