Question

please explain about accounting cycle with simple answer and send if there is good lectures on the internet.

and plz adjustment entry

Answer 1

Answer :-

Accounting process is a detailed process of recording .classifying and summarizing the transactions of business i.e. to record the day to day expenses and income occurred in business and to classify the transaction into useful financial information in form of financial statements including income statement, balance sheet, cash flow statements and change in the Equity.

The accounting is the step to step process, which starts from the recording of individual transactions and ends with the preparation of financial statements.

Simple steps involved in accounting cycle are as follows:-

1. Identifying and recording transaction in journal entries
2. Transfer or post the journal entry into respective account ledger
3. Abstracting trial balance from respective account ledger
4. Adjustment entries in trial balance at the end of the period
5. Preparing Final Statements with the information of trial balance
6. Recording the closing entries of temporary accounts
7. Preparing post-closing trial balance