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Accounting Notes

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12 views8 pages

Accounting Notes

Uploaded by

nimra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

ACCOUNTING CYCLE

The accounting cycle is a process of recording, analyzing, adjusting, finalizing, and reporting a
company's accounting activities for an accounting period.
The 8 Steps of the Accounting Cycle:

1. Transactions
2. Journal Entries
3. Posting to the General Ledger
4. Trial Balance
5. Reconcile Accounts
6. Adjusting Entries
7. Financial Statements
8. Closing

Purchasing Cycle
The purchasing cycle is the process that a company uses to buy goods or services. The cycle
starts when a company needs to purchase something and ends when the payment is made. There
are four main steps in the cycle: requisition, purchase order, receiving, and payment.
Basic Journal Entries
Capital Account:

Expenses Paid:
Income Received:

Purchases Account:
Sales Account:

Purchase Return or Return Outwards Account:

Sales Return or Return Inwards Account:


Stock:

Credit Transactions:

Assets: (When purchased)


When Assets are Sold

Depreciation:

Discount: (allowed)

Discount Received:
Amount Paid or Received in Full/Final Settlement :

Income Tax: Payment of Income Tax:

Refund of Income Tax:

Rent Paid:
Salaries Paid:

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