THE ACCOUNTING PROCESS

  Steps in the accounting process:

        1. Analyzing business documents.

        2. Recording business transactions in the journal to have chronological records of economic      activities.

       3. Posting to the general ledger to create a record of classified accounts.

       4. Preparation of trial balance to prove the equality of debits and credits in the general ledger.

       5. Making ends of period adjustments.

       6. Prepare a work sheet to facilitate the preparation of financial statements.

       7. preparation of financial statemernts.

       8. Journalizing and posting closing entries.  the objective of closing entry is to transfer the revenue, expense and drawing accounts to the capital account.

      9. Preparation of post-closing trail balance to ensure that the ledger remains in balance after posting the closing entries.

 Reference:

Fundamentals of Accounting P-1 (Accounting for service, Merchandising and Manufacturing)

By: Gloria Ardaniel Rante