Accounting Cycle

Lecture 3
 Accounting Cycle

• The General Journal

• The Ledger
• Trial Balance
• Adjustments
• Adjusted Trial Balance
• Financial Statements
• Closing Entries
• After Closing Trial Balance
 General Journal
Date Particulars P/REF Dr. $ Cr. $
General Entries Problems
General Journal
 General Journal
Date Particulars P/REF Dr. $ Cr. $
Step 2 Ledger Accounts
T Accounts
Running Balance Accounts / 4
Column Ledger Accounts
T Accounts (Posting, Footing & Balancing
Cash Acc. Receivable
 More of T Accounts

Accounts Payable Capital

Ledger Accounts
Ledger Accounts
 T - ACCOUNTS
o Weakness: - Balancing is done at the end
of the month.

RUNNING BALANCE ACCOUNT

o Strength: - Balancing is done after EVERY

transaction.
 Running Balance Accounts / 4
Column Ledger Accounts
Date Particulars Dr. $ Cr. $ Bal. $