*
• Accounting cycle is a sequence
of accounting procedure which
is used to record, classify and
summarize the business
tran...
 Source document
 Recording in journal
 Posting in ledger
 Trial balance
 Financial statement
• A source document refers to includes any
document that is received and issued against
any business transactions, which i...
• The first step of accounting cycle is recording
transactions in the journal. The any type of
business transactions occur...
• After recording the transactions in journal
the debit and credit entries in account
balances are posted from journal to ...
• A trial balance proves and authenticates the
equality of debit and credit entries in the
ledger.
*
Final accounts or financial statements
can be divided in two parts:-
1. Trading and profit & loss account
2. Balance shee...
• Trading account based on direct income and
expenses.
• A trading account represents either gross
profit or gross loss.
*
• Profit & loss account based on indirect
income and expenses.
• A profit & loss account represents either
net profit and ...
• Balance sheet is a combination of assets
and liabilities.
• A balance sheet represents the financial
statement of accoun...
Upcoming SlideShare
Loading in …5
×

Accounting cycle

2,187 views

Published on

anybody can easy to learn on project, i hope it's full-fill your desires............................

Published in: Economy & Finance
0 Comments
4 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,187
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
128
Comments
0
Likes
4
Embeds 0
No embeds

No notes for slide

Accounting cycle

  1. 1. *
  2. 2. • Accounting cycle is a sequence of accounting procedure which is used to record, classify and summarize the business transactions. *
  3. 3.  Source document  Recording in journal  Posting in ledger  Trial balance  Financial statement
  4. 4. • A source document refers to includes any document that is received and issued against any business transactions, which is needed to be recorded in a journal. *
  5. 5. • The first step of accounting cycle is recording transactions in the journal. The any type of business transactions occurred are entered in the journal. *
  6. 6. • After recording the transactions in journal the debit and credit entries in account balances are posted from journal to ledger. *
  7. 7. • A trial balance proves and authenticates the equality of debit and credit entries in the ledger. *
  8. 8. Final accounts or financial statements can be divided in two parts:- 1. Trading and profit & loss account 2. Balance sheet *
  9. 9. • Trading account based on direct income and expenses. • A trading account represents either gross profit or gross loss. *
  10. 10. • Profit & loss account based on indirect income and expenses. • A profit & loss account represents either net profit and net loss. *
  11. 11. • Balance sheet is a combination of assets and liabilities. • A balance sheet represents the financial statement of accounts. *

×