The following steps are involved in the accounting process:
Next comes journalising the
transactions i.e. Recording the transactions in the journal.
The journal entries are posted
into respective accounts in the ledger and the ledger accounts are balanced.
At the end of the accounting period,
a trial balance is prepared to ensure quality of debits and credits.
Adjustment and closing entries
are made to enable the preparation of financial statements.
6. As a last step financial statements are prepared.
These six steps taken sequentially complete the accounting process
accounting period and are repeated in each subsequent period.