Accounting cycle is the part of the book on System of Accounting is presenting for readers wherein i tried a little to describe the subject concisely to following the concept within no time.
The accounting cycle consists of 9 key steps: (1) analyzing transactions, (2) journalizing transactions, (3) posting to ledger accounts, (4) preparing a trial balance, (5) journalizing and posting adjusting entries, (6) preparing an adjusted trial balance, (7) preparing financial statements, (8) journalizing and posting closing entries, and (9) preparing a post-closing trial balance. The purpose of the accounting cycle is to ensure all financial activities of a business are recorded and reported accurately through a series of processes that track money coming in and going out. Errors can occur if transactions are incorrectly recorded or posted, leading to an unbalanced trial balance that requires adjustment.
The accounting cycle involves recording business transactions, preparing financial statements, and closing books at the end of each accounting period. It is based on key assumptions and principles including:
1) Transactions are recorded based on the accrual concept, which matches revenues to expenses in the period they are incurred regardless of when cash is received or paid.
2) Financial statements are prepared at the end of each period using the adjusted trial balance to provide an accurate picture of the company's financial position and performance.
3) The accounting equation (Assets = Liabilities + Equity) must always balance through double-entry bookkeeping, where every transaction has equal and offsetting debits and credits.
The document provides information on preparing a worksheet, the accounting cycle, classified balance sheets, and liquidity ratios. It defines a worksheet and outlines the 5 steps to prepare one. It also explains the steps in the accounting cycle, what a classified balance sheet is, and provides an example balance sheet. Finally, it defines working capital and the current ratio as measures of liquidity.
1. The document discusses the accounting cycle which includes preparing an adjusted trial balance, closing entries, and financial analysis and decision making.
2. Closing entries are journal entries made at the end of an accounting period that transfer the balances of temporary accounts like revenues and expenses to permanent accounts.
3. Financial analysis and decision making involves calculating key ratios from the financial statements like net income percentage, return on equity, working capital, and current ratio to evaluate the company's performance and financial health.
The document discusses the accounting cycle, which is a series of steps that involve recording business transactions from source documents through journal entries, posting to ledgers, preparing a trial balance, and ultimately producing financial statements. It describes each step in detail, including source documents, journal entries, posting to ledgers, trial balances, and financial statements such as the income statement and balance sheet. The accounting cycle is an important process for small businesses to understand their financial status and performance over a period of time.
The document discusses the accounting cycle and financial reporting process. It covers the key steps:
1. Preparing the basic financial statements - the balance sheet, income statement, and statement of retained earnings.
2. Making closing entries to reset temporary accounts to zero at the end of the period. This involves transferring account balances to income summary and then to retained earnings.
3. Evaluating the business performance using liquidity and profitability ratios calculated from the financial statements.
Accounting cycle - this is a term given to the step-by-step process of recording and processing of economic transactions of a company. The accounting cycle helps in the creation of useful financial information in the form of financial statements.
The accounting cycle summarizes the process of recording accounting transactions from occurrence through to financial statements. It begins with journal entries to record transactions, followed by posting to ledger accounts. An adjusted trial balance is prepared after adjusting entries. Financial statements are then prepared, followed by closing entries and a post-closing trial balance. The accounting cycle ensures all transactions are recorded, summarized and reported accurately.
The accounting cycle consists of 9 key steps: (1) analyzing transactions, (2) journalizing transactions, (3) posting to ledger accounts, (4) preparing a trial balance, (5) journalizing and posting adjusting entries, (6) preparing an adjusted trial balance, (7) preparing financial statements, (8) journalizing and posting closing entries, and (9) preparing a post-closing trial balance. The purpose of the accounting cycle is to ensure all financial activities of a business are recorded and reported accurately through a series of processes that track money coming in and going out. Errors can occur if transactions are incorrectly recorded or posted, leading to an unbalanced trial balance that requires adjustment.
The accounting cycle involves recording business transactions, preparing financial statements, and closing books at the end of each accounting period. It is based on key assumptions and principles including:
1) Transactions are recorded based on the accrual concept, which matches revenues to expenses in the period they are incurred regardless of when cash is received or paid.
2) Financial statements are prepared at the end of each period using the adjusted trial balance to provide an accurate picture of the company's financial position and performance.
3) The accounting equation (Assets = Liabilities + Equity) must always balance through double-entry bookkeeping, where every transaction has equal and offsetting debits and credits.
The document provides information on preparing a worksheet, the accounting cycle, classified balance sheets, and liquidity ratios. It defines a worksheet and outlines the 5 steps to prepare one. It also explains the steps in the accounting cycle, what a classified balance sheet is, and provides an example balance sheet. Finally, it defines working capital and the current ratio as measures of liquidity.
1. The document discusses the accounting cycle which includes preparing an adjusted trial balance, closing entries, and financial analysis and decision making.
2. Closing entries are journal entries made at the end of an accounting period that transfer the balances of temporary accounts like revenues and expenses to permanent accounts.
3. Financial analysis and decision making involves calculating key ratios from the financial statements like net income percentage, return on equity, working capital, and current ratio to evaluate the company's performance and financial health.
The document discusses the accounting cycle, which is a series of steps that involve recording business transactions from source documents through journal entries, posting to ledgers, preparing a trial balance, and ultimately producing financial statements. It describes each step in detail, including source documents, journal entries, posting to ledgers, trial balances, and financial statements such as the income statement and balance sheet. The accounting cycle is an important process for small businesses to understand their financial status and performance over a period of time.
The document discusses the accounting cycle and financial reporting process. It covers the key steps:
1. Preparing the basic financial statements - the balance sheet, income statement, and statement of retained earnings.
2. Making closing entries to reset temporary accounts to zero at the end of the period. This involves transferring account balances to income summary and then to retained earnings.
3. Evaluating the business performance using liquidity and profitability ratios calculated from the financial statements.
Accounting cycle - this is a term given to the step-by-step process of recording and processing of economic transactions of a company. The accounting cycle helps in the creation of useful financial information in the form of financial statements.
The accounting cycle summarizes the process of recording accounting transactions from occurrence through to financial statements. It begins with journal entries to record transactions, followed by posting to ledger accounts. An adjusted trial balance is prepared after adjusting entries. Financial statements are then prepared, followed by closing entries and a post-closing trial balance. The accounting cycle ensures all transactions are recorded, summarized and reported accurately.
The accounting cycle ensures accurate and reliable accounting information by repeating annual steps. These steps include preparing source documents, recording transactions in original books of entry, posting transactions to ledgers, transferring balances to a trial balance, adjusting entries and errors, preparing an adjusted trial balance, and producing financial reports. The cycle shows the process of accounting from initial transaction to final reporting.
The accounting cycle describes the process of recording, classifying, and summarizing business transactions. It involves sourcing documents, recording transactions in a journal, posting entries to ledgers, preparing a trial balance, and ultimately generating financial statements including a trading and profit/loss account and balance sheet. These steps ensure accuracy and equality between debits and credits.
The accounting cycle refers to the complete sequence of accounting procedures that are repeated during each accounting period. It begins with recording transactions and ends with preparing financial statements. The key steps in the accounting cycle are: 1) analyzing transactions, 2) journalizing transactions, 3) posting to ledger accounts, 4) preparing a trial balance, and 5) preparing financial statements.
The document outlines the 9 key steps in the accounting cycle: 1) Identify transactions, 2) Prepare source documents, 3) Record transactions in journals, 4) Post entries to ledgers, 5) Prepare a trial balance, 6) Post any adjusted entries, 7) Prepare an adjusted trial balance, 8) Post closing entries, and 9) Prepare financial statements to show the financial position of the business. Each step involves recording or adjusting accounting entries and ledgers to accurately track financial transactions.
The accounting process involves several steps: 1) Identifying and analyzing business transactions and events, 2) Recording transactions in journal entries using double-entry bookkeeping, 3) Posting journal entries to ledger accounts to show changes to accounts and current balances, 4) Preparing a trial balance to test that debits equal credits, and 5) Creating financial statements as the final reports on a company's financial status and profit. This process is repeated each reporting period as the accounting cycle.
Accounting Cycle - Journals - Capturing accounting eventFaHaD .H. NooR
What is the accounting cycle?
The accounting cycle is often described as a process that includes the following steps: identifying, collecting and analyzing documents and transactions, recording the transactions in journals, posting the journalized amounts to accounts in the general and subsidiary ledgers, preparing an unadjusted trial balance, perhaps preparing a worksheet, determining and recording adjusting entries, preparing an adjusted trial balance, preparing the financial statements, recording and posting closing entries, preparing a post-closing trial balance, and perhaps recording reversing entries.
Cycle and steps seem to be a carryover from the days of manual bookkeeping and accounting when transactions were first written into journals. In a separate step the amounts in the journal were posted to accounts. At the end of each month, the remaining steps had to take place in order to get the monthly, manually-prepared financial statements.
Today, most companies use accounting software that processes many of these steps simultaneously. The speed and accuracy of the software reduces the accountant's need for a worksheet containing the unadjusted trial balance, adjusting entries, and the adjusted trial balance. The accountant can enter the adjusting entries into the software and can obtain the complete financial statements by simply selecting the reports from a menu. After reviewing the financial statements, the accountant can make additional adjustments and almost immediately obtain the revised reports. The software will also prepare, record, and post the closing entries
The accounting cycle involves recording business transactions in a journal throughout the month. At month-end, adjusting entries are made to properly allocate revenues and expenses to the correct period. Closing entries are then made to zero out temporary accounts and prepare the financial statements for the period, including the income statement and balance sheet. This process repeats at the start of each new accounting period.
What is the accounting cycle?
The accounting cycle is often described as a process that includes the following steps: identifying, collecting and analyzing documents and transactions, recording the transactions in journals, posting the journalized amounts to accounts in the general and subsidiary ledgers, preparing an unadjusted trial balance, perhaps preparing a worksheet, determining and recording adjusting entries, preparing an adjusted trial balance, preparing the financial statements, recording and posting closing entries, preparing a post-closing trial balance, and perhaps recording reversing entries.
Cycle and steps seem to be a carryover from the days of manual bookkeeping and accounting when transactions were first written into journals. In a separate step the amounts in the journal were posted to accounts. At the end of each month, the remaining steps had to take place in order to get the monthly, manually-prepared financial statements.
Today, most companies use accounting software that processes many of these steps simultaneously. The speed and accuracy of the software reduces the accountant's need for a worksheet containing the unadjusted trial balance, adjusting entries, and the adjusted trial balance. The accountant can enter the adjusting entries into the software and can obtain the complete financial statements by simply selecting the reports from a menu. After reviewing the financial statements, the accountant can make additional adjustments and almost immediately obtain the revised reports. The software will also prepare, record, and post the closing entries.
The Accountancy, Business and Management (ABM) strand focuses on financial management, business management, corporate operations, and accounting. Careers related to ABM include sales manager, human resources, marketing director, project officer, bookkeeper, accounting clerk, internal auditor, and more.
The accounting cycle has 9 steps: 1) identifying transactions, 2) recording in journals, 3) posting to ledgers, 4) preparing an unadjusted trial balance, 5) making adjusting entries, 6) preparing an adjusted trial balance, 7) creating financial statements, 8) making closing entries, and 9) preparing a post-closing trial balance to test the equality of debits and credits.
The document discusses the accounting cycle and provides examples of classifying accounts, journalizing transactions, preparing ledger accounts, and posting journal entries to the ledger. It begins by classifying various accounts as personal, real, or nominal. Examples are then provided of journalizing transactions and posting the journal entries to update the appropriate ledger accounts. The key steps in journalizing, preparing ledger accounts, and posting entries from the journal to the ledger are outlined. Compound or combined journal entries involving multiple debits and/or credits are also introduced.
The accounting cycle refers to the series of steps involved in recording business transactions and producing financial statements. The key steps are: 1) identifying transactions and preparing source documents, 2) recording transactions in journals using double-entry bookkeeping, and 3) posting transaction details from journals to individual accounts in the ledger to accumulate balances over time. This process allows a business to track the financial effects of transactions and produce accurate financial statements.
The document discusses the accounting cycle which includes recording transactions, classifying entries in ledger accounts, and summarizing accounts to prepare financial statements. It provides details on steps like journalizing, posting to ledger accounts, preparing a trial balance to check the accuracy of the ledger, and rules for balancing accounts. The accounting cycle ensures all business transactions are recorded and reported in a systematic manner.
Accounting is the recording of financial transactions plus storing, sorting, retrieving, summarizing, and presenting the information in various reports and analyses. Accounting is also a profession consisting of individuals having the formal education to carry out these tasks.
This document provides an overview of a trial balance presented by Mr. Akshay M. Kasambe. It discusses the objectives of a trial balance which are to ascertain the arithmetical accuracy of ledger accounts, help locate errors, and help prepare final accounts. It describes the balance method and total amounts method for preparing a trial balance. It also discusses types of accounting errors such as errors of commission, omission, principle, posting, and compensating errors, and how they may affect the trial balance.
journal, ledger and trial balance indeep understanding with examples . A brife note on their pratical implimentation of journal, ledger and trial balance . their formate with explaination and examples
The document outlines the steps in the accounting cycle which include analyzing transactions, journalizing transactions, posting to ledgers, preparing a trial balance, adjusting entries, preparing financial statements, and closing entries. It also provides details on journalizing, including columns for date, account titles, debit/credit amounts, and posting references. The recording process involves analyzing source documents, writing details in the journal columns, and providing explanations.
Stu Ch04 Completing The Accounting Cycleguest441011
1) The document describes the accounting cycle and accrual accounting. It explains adjusting entries for unrecorded receivables, liabilities, prepared expenses, and unearned revenues.
2) The accounting cycle includes preparing financial statements and notes, and the closing process of closing revenue, expense, and dividend accounts to retained earnings.
3) Real and nominal accounts are closed in the accounting cycle to determine net income and retained earnings for the period.
The document summarizes key aspects of the accounting process discussed in chapter 2, including:
1) It introduces the basic accounting equation for assets, liabilities, and equity.
2) It discusses the accounting cycle of journalizing transactions, posting to accounts, preparing an adjusted trial balance and financial statements.
3) It provides an example of 12 transactions recorded for a new business and the resulting unadjusted and adjusted trial balances.
4) It explains the purpose of adjusting entries, the accrual basis of accounting, and how temporary and permanent accounts are treated.
Webinar on Accounting and Tax Checklist - Built AccountingBuilt Accounting
Essential bookkeeping and finance practices for small businesses in Ghana as they enter into 2019. From preparation of end of year financial statements for audit, filing of audited accounts at Registrar General's Department and Ghana Revenue Authority, payment of provisional/self assessment estimates, making your budget for the year prepared and many more.
The second chapter of my book "The System of Accounting" named ledger making is presenting on slide share with the hope of getting rewards and comments by readers.
The document discusses various journals used in accounting, including general journals, cash books, petty cash books, and purchase/sales journals. It provides examples of source documents like invoices and cash memos. It also shows examples of voucher forms for transactions like cash payments, receipts, and petty cash. Journal entries are recorded in the general journal to show debits and credits for business transactions.
The accounting cycle ensures accurate and reliable accounting information by repeating annual steps. These steps include preparing source documents, recording transactions in original books of entry, posting transactions to ledgers, transferring balances to a trial balance, adjusting entries and errors, preparing an adjusted trial balance, and producing financial reports. The cycle shows the process of accounting from initial transaction to final reporting.
The accounting cycle describes the process of recording, classifying, and summarizing business transactions. It involves sourcing documents, recording transactions in a journal, posting entries to ledgers, preparing a trial balance, and ultimately generating financial statements including a trading and profit/loss account and balance sheet. These steps ensure accuracy and equality between debits and credits.
The accounting cycle refers to the complete sequence of accounting procedures that are repeated during each accounting period. It begins with recording transactions and ends with preparing financial statements. The key steps in the accounting cycle are: 1) analyzing transactions, 2) journalizing transactions, 3) posting to ledger accounts, 4) preparing a trial balance, and 5) preparing financial statements.
The document outlines the 9 key steps in the accounting cycle: 1) Identify transactions, 2) Prepare source documents, 3) Record transactions in journals, 4) Post entries to ledgers, 5) Prepare a trial balance, 6) Post any adjusted entries, 7) Prepare an adjusted trial balance, 8) Post closing entries, and 9) Prepare financial statements to show the financial position of the business. Each step involves recording or adjusting accounting entries and ledgers to accurately track financial transactions.
The accounting process involves several steps: 1) Identifying and analyzing business transactions and events, 2) Recording transactions in journal entries using double-entry bookkeeping, 3) Posting journal entries to ledger accounts to show changes to accounts and current balances, 4) Preparing a trial balance to test that debits equal credits, and 5) Creating financial statements as the final reports on a company's financial status and profit. This process is repeated each reporting period as the accounting cycle.
Accounting Cycle - Journals - Capturing accounting eventFaHaD .H. NooR
What is the accounting cycle?
The accounting cycle is often described as a process that includes the following steps: identifying, collecting and analyzing documents and transactions, recording the transactions in journals, posting the journalized amounts to accounts in the general and subsidiary ledgers, preparing an unadjusted trial balance, perhaps preparing a worksheet, determining and recording adjusting entries, preparing an adjusted trial balance, preparing the financial statements, recording and posting closing entries, preparing a post-closing trial balance, and perhaps recording reversing entries.
Cycle and steps seem to be a carryover from the days of manual bookkeeping and accounting when transactions were first written into journals. In a separate step the amounts in the journal were posted to accounts. At the end of each month, the remaining steps had to take place in order to get the monthly, manually-prepared financial statements.
Today, most companies use accounting software that processes many of these steps simultaneously. The speed and accuracy of the software reduces the accountant's need for a worksheet containing the unadjusted trial balance, adjusting entries, and the adjusted trial balance. The accountant can enter the adjusting entries into the software and can obtain the complete financial statements by simply selecting the reports from a menu. After reviewing the financial statements, the accountant can make additional adjustments and almost immediately obtain the revised reports. The software will also prepare, record, and post the closing entries
The accounting cycle involves recording business transactions in a journal throughout the month. At month-end, adjusting entries are made to properly allocate revenues and expenses to the correct period. Closing entries are then made to zero out temporary accounts and prepare the financial statements for the period, including the income statement and balance sheet. This process repeats at the start of each new accounting period.
What is the accounting cycle?
The accounting cycle is often described as a process that includes the following steps: identifying, collecting and analyzing documents and transactions, recording the transactions in journals, posting the journalized amounts to accounts in the general and subsidiary ledgers, preparing an unadjusted trial balance, perhaps preparing a worksheet, determining and recording adjusting entries, preparing an adjusted trial balance, preparing the financial statements, recording and posting closing entries, preparing a post-closing trial balance, and perhaps recording reversing entries.
Cycle and steps seem to be a carryover from the days of manual bookkeeping and accounting when transactions were first written into journals. In a separate step the amounts in the journal were posted to accounts. At the end of each month, the remaining steps had to take place in order to get the monthly, manually-prepared financial statements.
Today, most companies use accounting software that processes many of these steps simultaneously. The speed and accuracy of the software reduces the accountant's need for a worksheet containing the unadjusted trial balance, adjusting entries, and the adjusted trial balance. The accountant can enter the adjusting entries into the software and can obtain the complete financial statements by simply selecting the reports from a menu. After reviewing the financial statements, the accountant can make additional adjustments and almost immediately obtain the revised reports. The software will also prepare, record, and post the closing entries.
The Accountancy, Business and Management (ABM) strand focuses on financial management, business management, corporate operations, and accounting. Careers related to ABM include sales manager, human resources, marketing director, project officer, bookkeeper, accounting clerk, internal auditor, and more.
The accounting cycle has 9 steps: 1) identifying transactions, 2) recording in journals, 3) posting to ledgers, 4) preparing an unadjusted trial balance, 5) making adjusting entries, 6) preparing an adjusted trial balance, 7) creating financial statements, 8) making closing entries, and 9) preparing a post-closing trial balance to test the equality of debits and credits.
The document discusses the accounting cycle and provides examples of classifying accounts, journalizing transactions, preparing ledger accounts, and posting journal entries to the ledger. It begins by classifying various accounts as personal, real, or nominal. Examples are then provided of journalizing transactions and posting the journal entries to update the appropriate ledger accounts. The key steps in journalizing, preparing ledger accounts, and posting entries from the journal to the ledger are outlined. Compound or combined journal entries involving multiple debits and/or credits are also introduced.
The accounting cycle refers to the series of steps involved in recording business transactions and producing financial statements. The key steps are: 1) identifying transactions and preparing source documents, 2) recording transactions in journals using double-entry bookkeeping, and 3) posting transaction details from journals to individual accounts in the ledger to accumulate balances over time. This process allows a business to track the financial effects of transactions and produce accurate financial statements.
The document discusses the accounting cycle which includes recording transactions, classifying entries in ledger accounts, and summarizing accounts to prepare financial statements. It provides details on steps like journalizing, posting to ledger accounts, preparing a trial balance to check the accuracy of the ledger, and rules for balancing accounts. The accounting cycle ensures all business transactions are recorded and reported in a systematic manner.
Accounting is the recording of financial transactions plus storing, sorting, retrieving, summarizing, and presenting the information in various reports and analyses. Accounting is also a profession consisting of individuals having the formal education to carry out these tasks.
This document provides an overview of a trial balance presented by Mr. Akshay M. Kasambe. It discusses the objectives of a trial balance which are to ascertain the arithmetical accuracy of ledger accounts, help locate errors, and help prepare final accounts. It describes the balance method and total amounts method for preparing a trial balance. It also discusses types of accounting errors such as errors of commission, omission, principle, posting, and compensating errors, and how they may affect the trial balance.
journal, ledger and trial balance indeep understanding with examples . A brife note on their pratical implimentation of journal, ledger and trial balance . their formate with explaination and examples
The document outlines the steps in the accounting cycle which include analyzing transactions, journalizing transactions, posting to ledgers, preparing a trial balance, adjusting entries, preparing financial statements, and closing entries. It also provides details on journalizing, including columns for date, account titles, debit/credit amounts, and posting references. The recording process involves analyzing source documents, writing details in the journal columns, and providing explanations.
Stu Ch04 Completing The Accounting Cycleguest441011
1) The document describes the accounting cycle and accrual accounting. It explains adjusting entries for unrecorded receivables, liabilities, prepared expenses, and unearned revenues.
2) The accounting cycle includes preparing financial statements and notes, and the closing process of closing revenue, expense, and dividend accounts to retained earnings.
3) Real and nominal accounts are closed in the accounting cycle to determine net income and retained earnings for the period.
The document summarizes key aspects of the accounting process discussed in chapter 2, including:
1) It introduces the basic accounting equation for assets, liabilities, and equity.
2) It discusses the accounting cycle of journalizing transactions, posting to accounts, preparing an adjusted trial balance and financial statements.
3) It provides an example of 12 transactions recorded for a new business and the resulting unadjusted and adjusted trial balances.
4) It explains the purpose of adjusting entries, the accrual basis of accounting, and how temporary and permanent accounts are treated.
Webinar on Accounting and Tax Checklist - Built AccountingBuilt Accounting
Essential bookkeeping and finance practices for small businesses in Ghana as they enter into 2019. From preparation of end of year financial statements for audit, filing of audited accounts at Registrar General's Department and Ghana Revenue Authority, payment of provisional/self assessment estimates, making your budget for the year prepared and many more.
The second chapter of my book "The System of Accounting" named ledger making is presenting on slide share with the hope of getting rewards and comments by readers.
The document discusses various journals used in accounting, including general journals, cash books, petty cash books, and purchase/sales journals. It provides examples of source documents like invoices and cash memos. It also shows examples of voucher forms for transactions like cash payments, receipts, and petty cash. Journal entries are recorded in the general journal to show debits and credits for business transactions.
Sh. aseem sir (workshop of financial managment held on 20 27.03.2013)Mukut Deori
This document provides information about accounting procedures and financial records maintenance at an educational institution. It discusses topics such as the objectives of accounting, classification of expenditures, cash book maintenance, bank reconciliation statements, and ledgers. Key points covered include identifying and recording financial transactions, ascertaining financial results, providing information to oversight bodies, ensuring proper classification of receipts and payments, and maintaining systematic accounting records.
1) The document discusses the responsibilities of those who handle cash transactions and banking activities in an organization. This includes the accountant-cash, who is responsible for receiving and paying cash, maintaining daily cash reports and balances, and the accountant-bank, who prepares cheques and ensures proper documentation.
2) Maintaining proper documentation of cash receipts and payments through daily reports, vouchers, and recording in the cash book and ledger is emphasized. Security measures for cash handling are also addressed.
3) The roles of the accountant-cash and accountant-bank are defined in processing cash transactions according to accounting principles and ensuring accurate recording and auditing of financial activities.
The basic of accounting is the part of my book "The system of accounting" volume III enlightened on payment and receipt made by cash and accrual as well as cash flow and fund flow concept in accounting.
The document provides objectives and content for Chapter 4 of the textbook "Accounting Information Systems, 6th edition". It covers the revenue cycle, including key processes like sales orders, billing, cash receipts, and collections. It describes the flow of transactions, necessary documents and journals, risks and controls at each step. It also discusses how technology can automate or reengineer the revenue cycle through systems like real-time processing, EDI, point-of-sale, and the implications for internal controls in computer-based environments.
The document provides objectives and content for Chapter 4 of the textbook "Accounting Information Systems, 6th edition". It covers the revenue cycle, including key processes like sales orders, billing, cash receipts, and collections. It describes the flow of transactions, necessary documents and journals, risks and controls at each step. It also discusses how technology can automate or reengineer the revenue cycle through systems like real-time processing, EDI, point-of-sale, and the implications for internal controls.
This document discusses accounting mechanics and processing accounting information. It covers key concepts like accounts, the accounting process, journals, ledgers, adjusting entries and financial statements. The accounting process involves identifying transactions, preparing vouchers, analyzing accounts affected, recording entries, posting to ledgers, preparing trial balances and adjusting entries, and finally generating financial statements like the income statement, balance sheet, statement of retained earnings and cash flow statement. Accounts are classified as personal, real or nominal. The accounting mechanics ensure financial data is collected, processed and presented accurately for decision making.
This document provides an overview of the billing/accounts receivable/cash receipts (B/AR/CR) business process. It describes the key objectives of the process, horizontal and vertical views of how information flows through it, technologies used like digital imaging and customer self-service systems, and fraud prevention considerations. Diagrams are included to illustrate the context, data flows, entities and relationships involved in the B/AR/CR process.
This document discusses controls over cash transactions including cash management responsibilities, internal controls, voucher systems, and bank statements. It defines cash and how it is reported in balance sheets. Management is responsible for accurate cash accounting, preventing losses from theft, ensuring adequate cash availability, and preventing idle cash. Internal controls over cash include segregating cash handling from record keeping, preparing cash budgets and receipts listings, daily bank deposits, and paying by check. The voucher system uses supporting documents, approvals, and registers to process payments. Bank statements summarize monthly account transactions.
The document discusses the revenue cycle in accounting information systems. It describes the key tasks and functional departments involved in the revenue cycle, including generating journal vouchers for billing, inventory control, and cash receipts. It also outlines the typical documents, files, and flow of transactions for manual and computerized revenue cycle processes like sales order processing, sales returns, and cash receipts. Finally, it discusses how technology can automate or reengineer different parts of the revenue cycle through real-time processing, point of sale systems, and electronic data interchange.
This document describes building a powerful double-entry accounting system. It discusses key concepts of double-entry accounting including debits, credits, general ledger, balance sheet, income statement and cash flow statement. It also outlines how to model accounting entries and movements declaratively using schemas. Events like purchases and payments trigger movements which are made up of one or more accounting entries. Rules ensure movements balance and caches track account balances. Generative testing is used to check business invariants. The system provides an audit trail, handles many customers, and can detect operational issues for management and financial accounting.
The document provides rules for debit and credit entries in accounting. Increases in assets and expenses are debited, while decreases in assets and increases in liabilities and capital are credited. It also gives examples of basic double-entry transactions like starting a business, purchases, sales, and payments.
The document discusses various modes of government payments including cash payments, clearing payments, and transfers between government accounts. It provides details on passing powers and limits for different levels of officers, general precautions to take before passing instruments, and the processes for cash payments, clearing payments, and transfers. Key steps include verifying schedules and instrument details, appropriate level of authorization, accounting entries, and returning instruments with objections.
The published document gives overall view of OTC, is the end-to-end business process for receiving and processing customer orders. It also gives accounting and technical insight for Oracle application R12 OTC cycle.
AccessPay Direct Debit Management SolutionAccessPay
The document discusses direct debit payments in the UK. It provides information on what direct debits are, how they are processed through Bacs, statistics on direct debit usage, benefits for customers and businesses, and an overview of the AccessPay direct debit management solution and its features and benefits for automating direct debit transactions.
Accounting Mechanics is a vast topic, where collecting and recording accounting data for preparation of principal financial statements required by GAAP.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc
Syed Aqeel Raza Jafri considers himself not a poet but someone who strives to understand the depth of words and acquire knowledge through language. He believes poetry is a form of art that allows one to hold profound knowledge "in the cup" like holding the sea. While he has written thousands of poems, he finds his poetry on Allah's name most meaningful as it allows him to express knowledge in new or deeper ways. He leaves it up to readers and audiences to decide if his work makes him a poet.
This document discusses how life is like the sea and heart, facing inevitable tides and floods. It asks rhetorically what life and the heart would be without the natural cycles of tides affecting the sea and floods affecting rivers, suggesting both would be empty. Life and the heart must experience their highs and lows.
Peoples are at the heart of power according to the chapter. The chapter discusses peoples and their importance from a philosophical perspective on politics. It was written by Syed Aqeel Raza Jafri for his master's degree in politics.
The poetry is taken from my book ' Philosophical Politics' says that welfare is the essence of politics and without it, there is no politics, no wisdom, and no people.
This document discusses the relationship between welfare and politics. It argues that welfare is dependent on politics, as welfare programs cannot exist without the establishment of supportive political systems and policies. The chapter examines how welfare policies are shaped by political decisions and priorities.
The document discusses welfare and is divided into several sections. It examines different perspectives on welfare, such as whether it should be a universal basic income or based on means-testing. It also considers arguments around the role of government in providing welfare and supporting citizens in need.
This document contains information about Aqeel Raza, a poet and writer on philosophical politics. It discusses the relationship between philosophy and politics, stating that politics needs philosophy to function properly with wisdom. Philosophy helps politics stay on the right path and makes every politician a "doctor of philoso-pathy". It concludes by asserting that every politician is a doctor of philoso-pathy.
I am writing a book named Philosophical politics based on wisdom, peoples, and welfare which describes philosophically and hope to get the interest of political minds.
The book is based on my own thoughts and ideas whatever be of anyone is not necessary to agree to any thought and ideas of any mind.
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
This document provides an overview of wound healing, its functions, stages, mechanisms, factors affecting it, and complications.
A wound is a break in the integrity of the skin or tissues, which may be associated with disruption of the structure and function.
Healing is the body’s response to injury in an attempt to restore normal structure and functions.
Healing can occur in two ways: Regeneration and Repair
There are 4 phases of wound healing: hemostasis, inflammation, proliferation, and remodeling. This document also describes the mechanism of wound healing. Factors that affect healing include infection, uncontrolled diabetes, poor nutrition, age, anemia, the presence of foreign bodies, etc.
Complications of wound healing like infection, hyperpigmentation of scar, contractures, and keloid formation.
How to Setup Warehouse & Location in Odoo 17 InventoryCeline George
In this slide, we'll explore how to set up warehouses and locations in Odoo 17 Inventory. This will help us manage our stock effectively, track inventory levels, and streamline warehouse operations.
Chapter wise All Notes of First year Basic Civil Engineering.pptxDenish Jangid
Chapter wise All Notes of First year Basic Civil Engineering
Syllabus
Chapter-1
Introduction to objective, scope and outcome the subject
Chapter 2
Introduction: Scope and Specialization of Civil Engineering, Role of civil Engineer in Society, Impact of infrastructural development on economy of country.
Chapter 3
Surveying: Object Principles & Types of Surveying; Site Plans, Plans & Maps; Scales & Unit of different Measurements.
Linear Measurements: Instruments used. Linear Measurement by Tape, Ranging out Survey Lines and overcoming Obstructions; Measurements on sloping ground; Tape corrections, conventional symbols. Angular Measurements: Instruments used; Introduction to Compass Surveying, Bearings and Longitude & Latitude of a Line, Introduction to total station.
Levelling: Instrument used Object of levelling, Methods of levelling in brief, and Contour maps.
Chapter 4
Buildings: Selection of site for Buildings, Layout of Building Plan, Types of buildings, Plinth area, carpet area, floor space index, Introduction to building byelaws, concept of sun light & ventilation. Components of Buildings & their functions, Basic concept of R.C.C., Introduction to types of foundation
Chapter 5
Transportation: Introduction to Transportation Engineering; Traffic and Road Safety: Types and Characteristics of Various Modes of Transportation; Various Road Traffic Signs, Causes of Accidents and Road Safety Measures.
Chapter 6
Environmental Engineering: Environmental Pollution, Environmental Acts and Regulations, Functional Concepts of Ecology, Basics of Species, Biodiversity, Ecosystem, Hydrological Cycle; Chemical Cycles: Carbon, Nitrogen & Phosphorus; Energy Flow in Ecosystems.
Water Pollution: Water Quality standards, Introduction to Treatment & Disposal of Waste Water. Reuse and Saving of Water, Rain Water Harvesting. Solid Waste Management: Classification of Solid Waste, Collection, Transportation and Disposal of Solid. Recycling of Solid Waste: Energy Recovery, Sanitary Landfill, On-Site Sanitation. Air & Noise Pollution: Primary and Secondary air pollutants, Harmful effects of Air Pollution, Control of Air Pollution. . Noise Pollution Harmful Effects of noise pollution, control of noise pollution, Global warming & Climate Change, Ozone depletion, Greenhouse effect
Text Books:
1. Palancharmy, Basic Civil Engineering, McGraw Hill publishers.
2. Satheesh Gopi, Basic Civil Engineering, Pearson Publishers.
3. Ketki Rangwala Dalal, Essentials of Civil Engineering, Charotar Publishing House.
4. BCP, Surveying volume 1
Walmart Business+ and Spark Good for Nonprofits.pdfTechSoup
"Learn about all the ways Walmart supports nonprofit organizations.
You will hear from Liz Willett, the Head of Nonprofits, and hear about what Walmart is doing to help nonprofits, including Walmart Business and Spark Good. Walmart Business+ is a new offer for nonprofits that offers discounts and also streamlines nonprofits order and expense tracking, saving time and money.
The webinar may also give some examples on how nonprofits can best leverage Walmart Business+.
The event will cover the following::
Walmart Business + (https://business.walmart.com/plus) is a new shopping experience for nonprofits, schools, and local business customers that connects an exclusive online shopping experience to stores. Benefits include free delivery and shipping, a 'Spend Analytics” feature, special discounts, deals and tax-exempt shopping.
Special TechSoup offer for a free 180 days membership, and up to $150 in discounts on eligible orders.
Spark Good (walmart.com/sparkgood) is a charitable platform that enables nonprofits to receive donations directly from customers and associates.
Answers about how you can do more with Walmart!"
Main Java[All of the Base Concepts}.docxadhitya5119
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
Leveraging Generative AI to Drive Nonprofit InnovationTechSoup
In this webinar, participants learned how to utilize Generative AI to streamline operations and elevate member engagement. Amazon Web Service experts provided a customer specific use cases and dived into low/no-code tools that are quick and easy to deploy through Amazon Web Service (AWS.)
This presentation was provided by Steph Pollock of The American Psychological Association’s Journals Program, and Damita Snow, of The American Society of Civil Engineers (ASCE), for the initial session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session One: 'Setting Expectations: a DEIA Primer,' was held June 6, 2024.
3. 3
TABLE OF CONTENTS
< ACCOUNTING CYCLE>
Accounting Cycle…………………………………………………………….72-73
1- Source Documents…………………………………………………74-76
I -Cash Memo………………………………………………………………..77-79
Ii - Invoice………………………………………………………… ………….80-82
Iii - Instruments of Banks……..………………………… ……………83
a) Cheque Book……………………………………………… …………..83-85
b) Deposit Slip………………………………………………………………….86
c) Funds Transfer Form…………….………………… ……………..87-89
4-Vouchers………………………………………………………… ………90
a) Cash Payment voucher………………………… ……………….91
b) Cash Receipt Voucher………………………… ………………..92
c) Bank Payment Voucher……………………… ………………..93
d) Bank Receipt Voucher…..…………………… ……………….94
e) Petty Cash Voucher…..……………………… ………………..95
2- JOURNAL……………..……………………………… ……………..96
Kinds of Journals………………………………… ……………………..97
5. 5
ACCOUNTING CYCLE
ACCOUNTING CYCLE
Accounting cycle means the collective processing of
accounting events of a firm repeated in the same order
in each accounting period. The business accounting cycle
is for one year in length. The steps begin when a
transaction occurs and end with its inclusion in financial
statements.
Here are following steps in accounting cycle:-
1-Source Document
2-Journal
3-Leger
4-Trial Balance unadjusted
5-Adjustments
6-Trial Balance Adjusted
7-Closing Entries
8-Worksheet
9-Finance Statement
10- Post Closing Trial Balance
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
1-Source Document
The source document which describes the transactions
and events moves accounting cycle. The Cash Memo,
Invoice, Bill, Statement, Bank Instrument or any other
paper in black and white enables accountant to support
and proof the transaction incurred are source
documents. The accounting cycle involves sale,
purchase, inventory or any other system adopted by
company creating source documents manually or
electronically under trading, servicing and
manufacturing businesses.
The accounting cycle cannot move without source
document.
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
Some source documents with their specimen using in
accounting are narrated below:-
1-CASH MEMO
2-INVOICE/BILL
3-INSTRUMENTS OF BANK
a)Cheque
b)Deposit Slip
c)Funds Transfer Form
4) VOUCHERS
a) Cash Payment Voucher
b) Petty Cash Voucher
c) Bank Payment Voucher
d) Cash Receipt Voucher
e) Bank Receipt Voucher
f) Journal Voucher
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
1-CASH MEMO
Cash Memo is the document of source when sale,
purchase or service is made in cash on the spot for
business, the seller have to give written instrument like
Cash Memo to the person purchased goods or acquired
services. The cash memo is made in duplicate or
triplicate according to the requirement of business.
Generally the Cash Memo contains:
Name, address and deals in of supplier or rubber
stamp, name and address of the purchaser, serial
number, date, quantity, description, rates of goods,
amount
Goods once sold will not be back. E. &.O.E. means
if there is any mistake in cash memo that is subject
to correction.
The cash memo must be signed by the duly
authorized person.
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
In case of trade discount or cash discount, sales tax and
anything is shown separately or designed according to
nature of business of firm.
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
CASH MEMO
S.No. Date
M/S.
Qty. Particulars Rate Amount
Total
Goods once sold will not be back. E.&.O.E.
Signature
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
2-INVOICE:
Invoice is the commercial document that controls the
sale of a product, inventory and taxes. It may be on cash
or credit. In case of credit, the amount will be receivable
by the purchaser or payable to the seller for a certain
period. The Invoice is made in duplicate or triplicate
according to the requirement of business manually or
electronically.
The Invoice is also known as bill, statement, sales invoice
or sales tax invoice.
It may usually contain as per specimen or design
according to nature of business of firm.
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
COMPANY LOGO Invoice No.
Date
COMPANY NAME P.Order No.
(Company Slogan)
(Address)
No., Street, City, code
Phone, Fax
e-mail
SALES TAX NO.
To
Name
Company Name
Address
Phone No.
SALES TAX NO.
S.NO. QUANTITY DESCRIPTION RATE AMOUNT
SUB TOTAL
SALES TAX
TOTAL
THANK YOU FOR YOUR BUSINESS
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
3- INSTRUMENTS OF BANK
a) Cheque Book
A small book containing 25, 50, and 100 leaves preprintedinstruments issuedby
bank to enable account holder to withdraw or transfer an amount from his
account.
The cheque book contains two portion of each leave one the large portion or
main portion called cheque which is presented into bank for payment the
amount writtenandanother small portioncalledcounter folio remains with the
account holder for record of withdrawals.
A cheque is an order, signed by account holder (drawer) to place an order to
bank (drawee) to pay a certain sum of money to the person’s name written on
the cheque (payee).
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
b) Deposit Slip
The bank deposit slip or pay-in-slip is a small
preprinted form used to transfer funds by way of cash
or cheque into account to fill the information in the
required fields.
The pay-in-slip contains either two portion or in
duplicate. The small portion or duplicate copy of the
deposit slip is returned by bank to account holder
after acknowledge the amount in cash or cheque and
affixing the seal and officer’s signature.
Today computerized electronic machines are making
the same job.
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
c) FUNDS TRANSFER FORM
The Bank issues preprinted form for making demand draft, pay order, funds
transfer to other account of out station and other countries electronically.
The accountholder has to fill the form and deposit the cash or cheque for the
purpose. The bank or financial institution returns the small portion of form to
depositor after acknowledging the amount in cash and cheque with seal and
signature. The charges for rendering services are deducted by bank.
Internet Banking is also useful for transfer funds from one account to another
account throughout country or worldwide.
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
4) VOUCHERS
A written record of payment and receipt by way of cash
and bank is called voucher supported by evidence or
events that a transaction has taken place. To record
liabilities and adjustment journal voucher is used.
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
a)-Cash Payment Voucher
CASH PAYMENT VOUCHER
Name of Company
Date
Voucher No.
C.B. Folio
DEBIT A/c
PAID TO
On account of Amount
Rs. Ps.
TOTAL
RUPEES
Prepared by: Checked by: Authorized by: Received By:
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
b)-Cash Receipt Voucher
CASH RECEIPT VOUCHER
Name of Company
Date
Voucher No.
C.B. Folio
CREDIT A/c
Received
from
On account of Amount
Rs. Ps.
TOTAL
RUPEES
Prepared by: Checked by: Authorized by: Received By:
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
c)-Bank Payment Voucher
BANK PAYMENT VOUCHER
Name of Company
Date
Voucher No.
C.B. Folio
DEBIT A/c
PAID TO
On account of Amount
Rs. Ps.
TOTAL
RUPEES
Prepared by: Checked by: Authorized by: Received By:
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
d) -Bank Receipt Voucher
BANK RECEIPT VOUCHER
Name of Company
Date
BP.V NO.
C.B. Folio
CREDIT A/c
Received
from
On account of Amount
Rs. Ps.
TOTAL
RUPEES
Prepared by: Checked by: Authorized by: Received By:
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
e- Petty Cash Voucher
Name of Company
PETTY CASH VOUCHER
No.
Paid to
Rupees Rs.
on account of
Prepared by: Checked by: Authorized by: Received By:
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
2-Journal
A journal is a book or computer file in which monetary
transactions systematically are entered the first time
they are processed in chronological sequence to control
large number of transactions of a day.
A daily record of events or business is referred to diary as
private journal.
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
KINDS OF JOURNALS
1-GENERAL JOURNAL
2-CASH BOOK
3-PETTY CASH BOOK
4-CASH RECEIPT JOURNAL
5-CASH PAYMENT JOURNAL
6-PURCHASE JOURNAL
7-PURCHASE RETURN AND ALLOWANCES
JOURNAL
8-SALES JOURNAL
9-SALES RETURN AND ALLOWANCES
JOURNAL
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
1-GENERAL JOURNAL
In accounting, a first step for recording of financial
transactions is General Journal where double entry
book keeping entries are recorded by debiting one or
more account and crediting another one or more
accounts with the same total amount under accounting
equation.
A general journal entry includes the date of the
transaction, the titles of the accounts debited and
credited, and an explanation of the transaction also
known as narration.
There are some other journals used for special purposes
called Special Journals same as General Journal or book
of original entry.
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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PAGE NO.
GENERAL JOURNAL
DATE DESCRIPTION REF. DEBIT CREDIT
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
2-CASH BOOK
The Cash Book is usually maintained all cash receipts and
cash major payments including bank deposits and
withdrawals.
The cash book is periodically reconciled with the bank
statement as an internal auditing.
Large business organizations that have a number of
transactions of cash payments and cash receipts use cash
receipt and cash payment journals.
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
3-PETTY CASH BOOK
Petty cash is a small amount of discretionary funds in the
form of cash used for payment of expenses. Because of
the inconvenience, cost of writing, signing, saving time
and energy of cashier, petty cash book is written where
cashier issues a cheque or cash from main cash book as
petty cash funds to petty cashier. The book keeping entry
for this initial fund would be to debit Petty Cash Funds
and credit bank account or main cash account
automatically.
Petty Cash Book contains five normally columns namely
(1) Receipt (2) Date (3) Description (4) Voucher Number
(5) Payments link to separate head of account.
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
4-CASH RECEIPT JOURNAL
The Cash Receipt Journal is used to record cash receipt
only designed by the requirements of business and
below is commonly used;-
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
CASH RECEIPT JOURNAL
DATE DESCRIPTION
OTHER ACCOUNTS:
Cr. SALES
A/C RECEIVABLE:
Cr. SALES CASH RECEIPT
Ref. Amount Cr. Ref. Amount DISCOUNT DR.
Dr.
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
5-CASH PAYMENT JOURNAL
The Cash Payment Journal known as “Multi Columns
Cash Payment Journal” is used to record major cash and
bank payments in various ways designed according to the
requirement of the business.
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
ACCOUNTING CYCLE
42. 42
CASH PAYMENTS JOURNAL
DATE DESCRIPTION
Voucher
OTHER
ACCOUNTS Purchases Trnas- A/C PAYABLE Purchase CASH PAYMENTS
No. Ref. Amount portation Ref. Amount Discount
Dr. Dr. Dr. Dr. Cr. Cr.
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
6- PURCHASE JOURNAL
The Purchase Journal is used for recording transactions
relating to credit purchases of merchandise and not for
cash purchases as cash purchases of merchandise are
recorded in Cash Book or Cash Payment Journal.
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
PURCHSASE JOURNAL
Page No.
DATE NOVICE NO. NAME OF SUPPLIER
POST
AMOUNT
Ref.
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
7-PURCHASE RETURN AND ALLOWANCES JOURNAL
Purchase Return and Allowances Journal is a Book known
as Purchase Return outwards book and purchase return
day book, wherein purchaser records all the debit
memorandum of parties of Purchase returns to seller for
certain reasons. Buyer sends a debit note to the seller
contains the quantity of goods returned and reasons for
return of goods.
The Purchase return and allowances journal is the
summary of parties whom goods has returned and the
claim of returns has been adjusted making General
Journal Entry by debiting Account Payable and crediting
Purchase Return and Allowances under reference.
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
PURCHASE RETURN AND ALLOWANCES JOURNAL
Page No.
DATE CREDIT MEMO NO. NAME OF SUPPLIER
POST
AMOUNT
Ref.
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
8-SALES JOURNAL
The Sales journal is used to record credit sales of
merchandise and not for cash sales.
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
SALES JOURNAL
Page No.
DATE ACCOUNT DEBITED INVOICE NO.
POST
AMOUNT
Ref.
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
9-SALES RETURNS AND ALLOWANCES JOURNAL
Sales Return and Allowances Journal is a book, known
as Sales Return Inwards Book or Sales Return Day Book,
wherein seller records only all the credit memorandum
of Parties of sales returns to him by his customers for
sold reasons.
The sale return and allowances journal is the summary
of parties who returned the goods and the claim of
returns has been adjusted making General Journal
Entry by debiting Sales Return and Allowances and
crediting Account receivable under reference.
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
SALES RETURNS AND ALLOWANCES JOURNAL
Page No.
DATE ACCOUNT CREDITED
CREDIT POST
AMOUNT
MEMO Ref.
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
DEBIT AND CREDIT MOMORANDUM
If any defect in commodities found, the purchaser will
inform the supplier for deduction of amount payable by
debit memorandum. If the supplier accepts the request,
he will issue a credit memorandum for deduction of
amount receivable.
The debit memorandum reduces the liability to vendor
and credit memorandum reduces accounts receivable to
vendor.
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ISSUED BY PURCHASER
SPECIMEN OF DEBIT MEMORANDUM
KARACHI TRADING COMPANY
P.O. BOX 990,
KARACHI- PAKISTAN
Debit Memorandum NO. 001
To: Date: January 10,2015
M/s. Azad Traders
S.I.T.E., Karachi
We are debiting your account with the value of under mentioned goods
returned;
Qty. Particulars Amount(Rs.)
5 Radio sets @ Rs.100 as per invoice. 500.00
No. 002 dated 12.1.2015
Less
Returned goods being of inferior
quality
via Malik Transport Co. E.&O.E.
Signature
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
ISSUED BY SELLER
SPECIMEN OF CREDIT MEMORANDUM
AZAD TRADERS
S.I.T.E.,
KARACHI-PAKISTAN
To: Credit Memorandum No. 10
Karachi Trading Co., Date: January 15,2015
P.O. BOX 990,
KARACHI- PAKISTAN
We are crediting your account with the value of under mentioned goods
Received from you for the reason stated in your Debit Note.
Qty. Particulars Amount(Rs.)
5
Radio sets @ Rs.100 as per Debit
Note No. 500.00
No. 0012 dated 10.1.2015
Less
Returned (goods being of inferior
quality)
E.&O.E.
Signature
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
3-GENERAL LEDGER
General journal shows debit and credit the accounts
head but the actual increase or decrease is ascertained in
an individual account and the group of accounts is known
as LEDGER or as book of final entry.
There are three types of accounts in ledger;
1-Standard Form
2-Skeleton Form “T” Shape.
3-Self Balancing Form
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
GENERAL LEDGER
COMPANY NAME LEDGER
Account of
DEBIT CREDIT Dr. BALANCE
DATE PARTICULARS FOLIO Rs. Rs. or Rs.
Cr.
Standard Form of Ledger Account
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
GENERAL LEDGER
COMPANY NAME LEDGER
Account of
DATE PARTICULARS FOLIO DEBIT DATE PARTICUALRS FOLIO CREDIT
Standard Form of Ledger Account
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
Cash Acc: No.
Specimen of Skeleton Form or "T" Shape Form
<THE SYSTEM OF ACCOUNTING < VOLUME 1< SYED AQEEL RAZA<aqeelraza@live.com>
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ACCOUNTING CYCLE
GENERAL LEDGER
COMPANY NAME LEDGER
Account of
DATE PARTICULARS FOLIO DEBIT PARTICUALRS FOLIO CREDIT
Specimen of self balancing form
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ACCOUNTING CYCLE
4-TRIAL BALANCE (UNADJUSTED)
All the ledger accounts are summarized into a statement
at the end of a period such as month, quarter or year
known as TRIAL Balance. An unadjusted trial balance is
the one which is summarized before any adjustments
made in ledger accounts.
The debit and credit result of account balance is taken or
kept in its proper place account related to;
Debit Balance Credit Balance
Assets Contra Assets
Expenses Liabilities
Prepaid expenses Capital
Drawing Revenue
The Trial balance is formed in two as to Standard Form
and Skeleton Form specified below;
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TRIAL BALNACE
AT THE END OF THE YEAR JUNE,30 2014
TITLE OF ACCOUNT
Account DEBIT CREDIT
No. Rs. Rs.
Specimen of trial Balance standard form
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COMPANY NAME
TRIAL BALNACE
AT THE END OF THE YEAR JUNE,30 2014
ASSETSCONTRAASSETLIABILITIESPROPRIETORSHIPINCOMEEXPENSES
Specimen of trial Balance Skeleton form
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5-ADJUSTMENT
In order to present a true and fair view of the financial
position, an entry is made in accounts which does not
record a transaction but made to rectify errors, missed
recording, not recorded properly or wrong amounts were
recorded previously or some transactions are recorded
only at the end of the year. These transactions or entries
are related with the adjustment, reversing, correction of
errors.
Below is the most common adjustment;
ACCRUED EXPENSES/UNRECRODED EXPENSES
PREPAID EXPENSES
DEPRESCIATION EXPENSES
BAD DEBITS/UNCOLLECTIBLE
UNUSED SUUPLIES OR MERCHANDISE
ACCRUED INCOME/UNRECORD EXPNESES.
UNEARNED REVENUE
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6-TRIAL BALANCE (ADJUSTED)
After adjusting and positing the entries into ledger
accounts, re-trial balance is prepared called adjusted trial
balance.
Like the unadjusted trial balance, the adjusted trial
balance accounts are listed usually in or order as “assets,
liabilities, and equity, income and expenses accounts.”
An adjusted trial balance is formatted exactly like an
unadjusted trial balance.
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7- CLOSING ENTRIES
Revenue, expense and capital withdrawal (dividend) accounts are temporary
accounts need to rest at the end of the accounting period through Income
Summary or Expense and revenue summary. Closing entries are the journal
entries usedtotransfer the balances of these temporary accounts topermanent
accounts. The closing journal entries may be in the form of a compound journal
entry if there are several accounts to close.
The sequence of closing process is as under:
1. Close the revenue accounts to Income Summary
2. Close the expense account to Income Summary
3. Close Income Summary to Retained Earnings
4. Close Dividends to Retained Earnings
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EXAMPLES
1. Close the revenue accounts to Income Summary
DATE ACCOUNTS DEBIT CREDIT
mm/dd Revenue XXXX.XX
Income Summary XXXX.XX
2. Close the expense account to Income Summary
DATE ACCOUNTS DEBIT
mm/dd Income Summary XXXX.XX
Expenses
3. Close Income Summary to Retained Earnings
DATE ACCOUNTS DEBIT CREDIT
mm/dd Income Summary XXXX.XX
Retained Earnings XXXX.XX
4. Close Dividends to Retained Earnings
DATE ACCOUNTS DEBIT CREDIT
mm/dd Retained Earnings XXXX.XX
Dividends XXXX.XX
4. Unrecorded expenses or accrued expenses
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DATE ACCOUNTS DEBIT CREDIT
mm/dd Expense Account XXXX.XX
Accrued Expense XXXX.XX
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8- WORKSHEET
The worksheet means working paper containing different types of information
or accounting data prepared to minimize errors in the permanent record of
accounting, simplify work and for testing of ledger accounts, adjusting entries
and financial accounts.
The worksheet or working paper specimen below is very useful providing
information for;
Financial statement
Owner’s equity
Posting of adjusting entries in the accounting records
Recording of closing entries
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9-FINANCIAL STATEMENTS
At the end of the accounting period, financial statements
as income statement and Balance sheets are prepared to
close up all the financial activities during the year.
All the expenses and revenue accounts are closed by
Income Statement or Expense and Revenue Summary
showing Net Income or Net Loss for the period.
All the Assets, Liabilities and Proprietorship accounts are
presented in Balance Sheet.
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COST OF MERCHANDISE
The rule of cost of merchandise in profit and loss
summary is important to find out the net income or loss.
The amount of cost of merchandise sold is obtained by
the process of the following;
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COST OF MERCHANDISE SOLD STATEMENT
AT THE END OF THE YEAR 201..
COST OF MERCHANDISE SOLD
Merchandise Inventory (Opening) xxxx.xx
Purchases xxxx.xx
Less: Purchase Returns & Allows. xxx.xx
Less: Purchase Discount (+)xxx.xx (-)xxxx.xx
NET PURCHASES xxxx.xx
Add: Transportation in;
Cartage xxx.xx
Import Duties xxx.xx
Custom Duties xxx.xx
Clearing & forwarding Exp. xxx.xx
Freight Charges xxx.xx (+)xxx.xx
COST OF MERCHANDISE AVAILABLE FOR SALE xxxx.xx
LESS: MERCHANDISE INVENTORY (ENDING) (-)xxxx.xx
COST OF MERCHANDISE SOLD xxxx.xx
(Transferred to Profit & Loss Account)
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INCOME STATEMNET
PROFIT AND LOSS STATEMENT
AT THE END OF THE YEAR 201
SALES REVNUE:
Sales
Less: Sales Return & Allowances xxxx.xx
Less: Sales discounts xxxx.xx
(-)xxxx.xx
NET SALE xxxx.xx
LESS : COST OF MERCHANDISE SOLD (-)xxxx.xx
GROSS PROFIT OR LOSS (+/-)xxxx.xx
LESS EXPENSES
Operating Expenses xxxx.xx
General Expenses xxxx.xx
Financial Expenses xxxx.xx (-)xxxx.xx
NET PROFIT OR LOSS (+/-)xxxx.xx
(Transferred to Capital Account)
If net sales exceed the cost of merchandise sold, it means
that there is gross income and if it is less to cost of
merchandise sold, there is gross loss. And for this,
expenses increase or decrease the gain or loss.
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BALANCE SHEETS
COMPANY NAME
BALANCE SHEET AS AT 30.06.2015
ASSETS Amount EQUITIES Amount
CURRENT ASSETS CURRENT LIABILITIES
Cash in hand xxxx.xx Accounts Payable xxxx.xx
Cash at Bank xxxx.xx Bank Over draft xxxx.xx
Accounts Receivable xxxx.xx Salaries Payable xxxx.xx
Stock xxxx.xx Wages Payable xxxx.xx
Unexpired Insurance xxxx.xx Utilities Payable xxxx.xx
Unexpired Rent xxxx.xx
XXXX.XX XXXX.XX
NON-CURRENT ASSETS LONG TERM LIABILITIES
Land xxxx.xx Mark-up xxxx.xx
Building xxxx.xx Loan xxxx.xx
Furniture & Fixtures xxxx.xx XXXX.XX
Office Equipment xxxx.xx OWNER'S EQUITY
Less: Accumulated Depreciation (F&F) (-)xxxx.xx Capital xxxx.xx
Less: Accumulated Depreciation (OE) (-)xxxx.xx Less: Drawing (-)xxxx.xx
TOTAL XXXX.XX TOTAL XXXX.XX
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10-POST CLOSING TRIAL BALANCE
A post closing trial balance contains only the balance
sheet accounts and their amounts i.e. assets, liabilities,
owner equities. It is prepared after closing the expenses
and revenue accounts.
The preparation of post-closing trial balance is the last
step of the accounting cycle and gives the assurance that
sum of debits equal the sum of credits before the start of
new accounting period. It provides the opening balances
for the next ledger accounts of the new accounting
period.
This is the end of the accounting cycle and in the next
accounting period; the accounting cycle will be repeated
again as before.
The following is the example of closing trial balance;
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COMPANY NAME
POST CLOSING TRIAL BALANCE
AT THE END OF THE YEAR JUNE, 30 201…
TITLE OF ACCOUNT
DEBIT CREDIT
Rs. Rs.
Cash xxxx.xx
Accounts receivable xxxx.xx
Stock xxxx.xx
Prepaid Insurance xxxx.xx
Prepaid Rent xxxx.xx
Land xxxx.xx
Building xxxx.xx
Furniture & Fixtures xxxx.xx
Office Equipments xxxx.xx
Accounts Payable xxxx.xx
Bank overdraft xxxx.xx
Salaries Payable xxxx.xx
Wages payable xxxx.xx
Utilities Payable xxxx.xx
Mark up xxxx.xx
Loan xxxx.xx
Capital xxxx.xx
TOTAL XXXX.XX XXXX.XX
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ENDING WORDS
ON
ACCOUNTING CYCLE
Accounting covers all the department of life, the life
cannot move or survive without food and food comes
from money, money comes from doing business,
business needs accountancy and accountancy has
process like cycle revolves all finances resulting in
financial statements showing the true and fair financial
position enables businessman to take further decisions
on business movement.
The Accounting cycle which starts once has no break
either to carry on or wind up the business activities.
I tried a little to describe the subject concisely to follow
the concept within no time.
Your comments and support is assurance of writing
further.
Author