Financial Accountings:

Accounting Cycle
Group:
Ahmed Nazeer (9770)
Laiba Shamim (9666)
Rimsha Liaquat (9859)
Rija Shakoor (9649)
Noor ul ain (9471)
Instructor: Sir Abdul Mateen
Accountings Cycle:
An Accounting Cycle is the collective process
of identifying, analyzing, and recording
the Accounting events of a company. The
series of steps begins when a transaction
occurs and end with its inclusion in the
financial statements.
General Journal:
 The General Journal is where double entry
book keeping entries are recorded by debiting
one or more accounts and crediting another
one or more accounts with the same total
amount.
General Ledger:
The General Ledger is the primary accounting
record of a company that uses double-entry
book keeping. It is divided into two sections:
debit and credit. It is also known as T.Accounts
Trial Balance:
 A listing of the accounts in the general ledger
along with each account’s Balance in the
appropriate debit or credit column. The total
of the amounts in the debit column should
equal the total of the amounts in the credit
column.
Adjusting Entries:
Adjusting entries usually dated the last day of
the accounting period to bring the balance
sheet and income statement up to date on the
accrual basis of accounting.

Transaction:
In start we have a supply of $2080, Supplies on
hand at may 31st $750.
 Adjusting Journal Entry

Date Particular Debit Credit

May 31st Supplies expense 1330

Supplies 1330
Adjusted Trial Balance:
An Adjusted Trial Balance is prepared after
adjusting entries are made and posted to the
ledger. This is the second trial balance
prepared in the Accounting Cycle.
Income Statement:
The Income Statement is one of a company’s
core financial statements that shows
their profit and loss  over a period of time. 
The profit or loss is determined by taking all
revenues and subtracting all expenses from
both operating and non-operating activities.
Balance Sheet:
A Balance Sheet allows businesses to see their
assets, in one column at the left side and
liabilities, owner's equity in other column at
the right side for a specific point in time and
both columns are balanced.
Statement of Retained Earning:
The Statement of Retained Earnings shows
the relationship between a company's
income statement and balance sheet from one
point to another.
Closing Entries:
A Closing Entry is a journal entry made at the
end of an accounting period to transfer the
temporary account balances to the permanent
accounts.
Post Closing Trial Balance:
A listing of all of the accounts in the general
ledger with account balances after

the Closing Entries have been Posted.  

Thank You.