This document defines trading companies and outlines the accounting cycle process for such companies. It discusses that trading companies engage in buying and selling goods. The accounting cycle includes analyzing transactions, recording transactions in a journal, making adjustments, preparing a working paper/worksheet, and generating financial statements. The financial statements produced are the income statement, balance sheet, statement of equity changes, and statement of cash flows. The document provides an example of transactions recorded in a journal by a trading company and explains steps in the accounting cycle like posting journal entries to general ledgers and making adjusting entries.

2. Definition Of
Trading Company
The kinds of
Trading Company
The Cycle
Of
Accounting
in Trading
Companies
The characteristics
of which are owned
of Trading
Company
1.
2
The Steps Cycle
Of Accounting in
Trading Company
3
4
• The Transaction
• The recording
• The summary
• The Reporting

3. Definition Of Trading
Company
The kinds of Trading
Companies

4. The characteristics of trading
companies can be viewed from the
activity in companies including
the viewed of the activity of
buying and selling goods in the
same form.
1. Make purchasing of merchandise,
either by cash or credit
2. The salling of merchandise, either
by cash or credit
3. Doing effort debt payments that
occurs due to a variety of
transactions in the company's
activities.
4. Receive payment / pay of trade
receivables which are the result of
various
transactions
in
the
company's activities
5. Perform during the storage of
merchandise sold and not delivered
to the buyer.

5. The Steps Cycle Of Accounting in
Trading Company

6. 1.
2
• The
Transaction
The Analyzes of
Transaction
The Advidance of
transaction
• The
recording
Make a journal
Posting to General
Ledger
3
• The
summary
Make the Working
Paper in Work Sheet
The Income
Statement
4
• The stage of
Financial
statement
The Statements Of
Equity Changes
The Statement Of
Cash Flow

7. 1. Analyzed of Transactionts
every financial transaction that occurs
in the company must be accompanied
by proof of the transaction.

8. a. Invoices
b. A Receipt
c. Memorandum of Nota debit and credit
d. Evidence of delivery of goods
e. Document / evidence of Cash Out

9. Example Transaction :
The following transactions were carried out by PD " Eternal Blue "
during the month of April 2008 .
1 . Merchandise sold to CV " Aini " for Rp . 5,000,000.00 in cash .
1 . Purchased merchandise from the store " Anis " for Rp .
3,000,000.00
2 Paid rent the building for 10 months Rp. 1,000,000.00
3 . Purchased merchandise from CV Pearls for Rp . 10,000,000.00
invoice no 010 with terms 2/10 , n/30
4 . Merchandise is returned in part because of damage to the CV
Pearls Rp . 2,000,000.00
5 . Duty paid goods to PT " Rama " is Rp . 600.000,00
6 . Paid by check no. 511 to CV Pearls for settlement no invoice . 010
7 . Sold merchandise to the store "Lush " with the invoice no . 015 for
Rp 3.500.000,00 with terms 2/15 , net 30 .
17 . Debit note received from the store "Lush " for the return of goods
worth 500,000 , 00 .

10. Date
2006,
April
Discription
1Cash
Ref Debet (Rp) Credit (Rp)
5.000.000
sales
(Cash sales to CV "Aini)
1Marchandise inventory
cash
(KPD cash purchase store
"Anis")
2Prepiad Rent
cash
(paid rent for 10 months)
3Cost of Good sold
Account Payable
(credit purchases of CV
"Pearl")
5.000.000
3.000.000
3.000.000
2.000.000
2.000.000
10.000.000
10.000.000

11. 4Account Payable
2.000.000
2.000.000
Purchase return
( returns of merchandise
purchased since broken)
5Freight Paid
Cash
(payment of duty to the PT
"Rama")
6Account Payable
Cash
purchase discount
(Payment of credit
purchase with discount)
7Account Receivable
sales
(Sales of credit to shop
Lush, invoice no.015,
terms 2/15, net 30)
17Sales Retuns
Account Receivable
(Returns of sales)
600.000
600.000
8.000.000
7.840.000
160.000
3.500.000
3.500.000
500.000
500.000

12. After all transactoints are recorded into journal,
perform desplacement (post) journal data into
General Ledger on each post of number account.
In process posting is accuracy in the transfer amount,
and the recording of debit side or the credit side of
an account.

13. 1. Make a adjusting entries
Adjusting entries are being made in journal
recording the changes in the balance of that account
the balance reflect actual number of
The function of the adjusting entry:
1. Setting the balance ledger account record at the end
of that period appropriate with the balance of the real
(actual)
2. Calculate revenues and expenses during the period.

14. 2. Make the Working Paper in the Form of Work Sheet
After making adjusting entries at the end of the
period, then continued making work sheet. Which
then enter the amount of the adjustment results.

15. Financial Statement
Report financial position usually reflect the
various elements of the income statement and the
changes in the various elements of the balance
sheet.

16. reported about the activity of the company
income and operational by taking into account
with during a period that can then be
determined profit or loss

17. financial report shows the equity changes for a period.
The report consists of the initial balance of equity
capital on the scales balance added after adjusted in
net profit for a period of reduced by adoption of
prive.

18. The balance sheet ( ballance sheet ) namely
report sistimatically describing
financial position of a firm covering assets, liabilities,
and Equity.
1.Assets
2. Liabilities
3. Equity

19. Indicating sources of and uses of cash during the
period that the cash balance on the balance sheet
looks like, cash flow statement needs data /
information from the previous period and the balance
of the period and the profit or loss in the period in
question. Cash flow statement shows the company's
operating, investing and financing cash flows.

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