Question

name the steps followed in accounting process

Answer 1

1)Analyse the transaction and classify according to the transaction type..check the source of transaction I.e document supporting the transaction.

2)Record transactions in suitable journal entry . They are called as books of original entry.

3)Post into corresponding ledger. They are called as books of final entry.

4)Prepare trail balance to check debit and credit transaction.

5)Pass appropriate adjusting entries . Certain transactions are based on accrual basis.

6)After passing appropriate adjusting entries create final trail balance

7)Prepare financial statements - 1) Statement of Comprehensive Income(Income Statement and Other Comprehensive Income), (2) Statement of Changes in Equity, (3) Statement of Financial Position or Balance Sheet

8)Pass necessary Closing entries.Post closing trail balance - it is done only with regarding to real accounts only.

Hope its useful ..!!!!