This is just the same with the accounting process but with service business. Enjoy learning!!
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Steps in Accounting Cycle for Service Business
1. Journalizing
2. Posting
3. Trial Balance
4. Adjusting
5. Financial Statements
6. Closing
7. Posting Closing Trial Balance
8. Reversing
*After the analysis of transactions, it will be recorded in the journal.
*The journal entries are posted in the general ledger. A ledger account is represented by T-Account.
*The effects on the ledger, a trial balance is prepared.
*After the trial balance, time to adjust the ledger balances.
*Make the financial statements; income and balance sheet.
*Closing of accounts
*Make the closing trial balance of all assets, liabilities and equity.
*Preparation for new accounting period.
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DID YOU KNOW?
Calendar year - start from Jan 1 and ends on Dec 31
Fiscal year - a period of twelve months and ends on a date other that Dec 31
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Accounting
RandomThis book is filled with accounting lessons specially crafted for accounting students and aspiring accountants. Dive into the world of numbers and financial know-how as I guide you through essential concepts and practical insights. Whether you're ju...
