this ppt is on accounting cycle

3. Identify the transaction
Prepare source
documents or invoice
Recording in journals
Posting
into ledger
Preparing trial balance
Posting of adjusted
entries
Adjusted trial balance
Post the closing entries
Prepare financial
statement

4. 1. INDENTIFY THE TRANSACTION
The first step is to identify the transaction which is only the
financial nature transaction

5. 2. PREPARE SOURCE DOCUMENTS OR INVOICE
The second steps is to prepare the source documents or invoice which
leads as an evidence or support in preparing or recording transactions

6. 3. RECORDING IN JOURNALS
The third step is to records this transactions into “Journal” in chronological order
Journal – act of keeping records in books of accounts in chronological (date-wise) order of
any financial transaction

7. 4. POSTING INTO LEDGER
The fourth step is to post these entries into ledger.
Ledger – posting of journal entries into different accounts

8. 5. PREPARING TRIAL BALANCE
The fifth step is to prepare the trial balance
Trail Balance – statement which includes balances of all the accounts

9. 6. POSTING OF ADJUSTED ENTRIES
The sixth step is to post the adjusted entries if any

10. 7. ADJUSTED TRIAL BALANCE
The Seventh step is to make the adjusted trial balance after adjusting
entries, if required

11. 8. POSTING CLOSING ENTRIES
The eighth step is to post the closing entries into “Trading and Profit & Loss A/c”
Trading A/c – related to operating expenses & Operating income of business
Profit & Loss A/c – related to non-operating expenses & non-operating incomes of business

12. 9. PREPARE FINANCIAL STATEMENT
The ninth step is prepare financial statement which will show the
financial position of business.

13. THANK YOU
YAMINI KAHALIYA