Unit 4 Journals, Ledgers& Trial BalanceI .JournalsII . LedgersIII. Trial Balance
Unit 4 Journals, Ledgers & Trial Balance Ⅰ.Journals Ⅱ. Ledgers Ⅲ.Trial Balance
Accounting Cycle The sequence of accounting procedures used torecord, classify, and summarize accountinginformation is termed the accounting cycleThe accounting cycle begins with the initialrecording business transactions and concludes withthe preparation of formal financial statements
2 ◼ The sequence of accounting procedures used to record, classify, and summarize accounting information is termed the accounting cycle. ◼ The accounting cycle begins with the initial recording business transactions and concludes with the preparation of formal financial statements. Accounting Cycle
Accounting Cycle1.Analyzingtransactions2.Making7.FinancialjournalsstatementAccountingCycle3.Preparing6.Adjustedledgerstrial balance4.Trial5.Adjustingbalance&closing3
3 Accounting Cycle 1.Analyzing transactions 2.Making journals 3.Preparing ledgers 4.Trial balance 5.Adjusting &closing 6.Adjusted trial balance 7.Financial statement Accounting Cycle
I JournalsDefinitionof journalForm of the journalProcedures of recordingActivities
4 ⅠJournals Definition of journal Form of the journal Activities Procedures of recording
Definition of journalJournal is the book of original entry of businesstransactions recorded in chronological order.RecordingbusinesstransactionSourceAccountsTransactionTransactiondocumentposted toentered inoccurspreparedledgerjournal足贷饭
5 Transaction occurs ◼ Recording business transaction Definition of journal Source document prepared Transaction entered in journal Accounts posted to ledger Journal is the book of original entry of business transactions recorded in chronological order