Accounting is the art of recording, classifying and

summarizing in a significant manner and in terms of money,

transactions and events which are, in part at least, of a
financial character, and interpreting the results thereof.
Transaction means an event or a business activity
which involves exchange of money or money’s worth
between parties. The event can be measured in terms
of money.
The transactions are
recorded in a Journal
chronologically.
All journals are posted into
ledger chronologically and
in a classified manner.
A trial balance is a report that
lists the balances of all general
ledger accounts of a company
at a certain point in time
All the nominal
accounts are to be
closed by the
transferring to Trading
Account and Profit
and Loss Account.

All the adjustments entries are to be

recorded properly and adjusted
accordingly before preparing financial
statements