ACCOUNTING CYCLE

ACCOUNTING CYCLE

Accounting cycle is a sequence of

accounting procedure which is used to
record, classify and summarize the
business transactions.
JOURNALIZING LEDGER

The format of a journal is simple, and we

include date, particulars, ledger folio, debit
amount, and credit amount. The format of
the ledger is “T” format where we use to
date, particulars, and amount on each side.
It is called the “book of original entry.” It is
called the “book of the second entry.”
TRIAL BALANCE

A trial balance is a financial report

showing the closing balances of all
accounts in the general ledger at a point
in time. Creating a trial balance is the
first step in closing the books at the end
of an accounting period.
ADJUSTING ENTRIES

An adjusting entry is an entry made to

assign the right amount of revenue and
expenses to each accounting period. It
updates previously recorded journal
entries so that the financial statements
at the end of the year are accurate and
up-to-date.
WORKSHEET AND FINANCIAL
STATEMENT
What is Worksheet? Multiple column sheets wherein
all necessary information used for the preparation of
the financial statement is recorded in a systematic
process is called a worksheet. The worksheet is not a
permanent account. It is not a part of a journal or
ledger. The three main types of financial statements
are the balance sheet, the income statement, and
the cash flow statement. These three statements
together show the assets and liabilities of a business,
its revenues and costs, as well as its cash flows from
operating, investing, and financing activities.