Accounting Cycle or Accounting process

Meaning of accounting cycle

The accounting cycle is the complete sequence of accounting processes or procedures which begin with the recording of business transactions in the book or books of original entry and end with the preparation of final accounts, and which are repeated in the same order in each accounting period.

Diagram showing accounting process of an accounting cycle:

The sequential steps involved in the accounting cycle are

1.Recording the business transactions in a journal or special journals

Recording the business transactions date wise in the book or books of original entry called the journal or in a number of books of original entry called the special journals or subsidiary books, as and when they occur.

2. Classifying the transactions through posting to ledger periodically

Classifying the transactions (i.e., the entries found in the book or books of original entry) by posting or transferring those entries to the appropriate accounts in the Ledger periodically.

3.Balancing the various Ledger accounts

To know the net effect of similar entries the various Ledger accounts are balanced in the third step of the accounting process.

4. Preparation of a trial balance

Verifying or checking the arithmetical accuracy from the balances of various ledger accounts, the trial balance is prepared in the 4th step of the accounting cycle.

5.Final accounts preparation

In the final process of accounting cycle, the final accounts or financial statements from the trial balance and the adjustments , if any, at the end of the accounting period, to ascertain the profit or loss of the business for the accounting. And to ascertain the financial position of the business at the end of the accounting period

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poem by student Pallavi kumar

ನನ್ನ ದೇಶ ನನ್ನದೆನ್ನುವ ಅಭಿಮಾನವು ನಿಮ್ಮದು ಆ.. ಶೃಂಗ-ಶಿಖರಗಳಾ ಅಂತರಂಗವೆಲ್ಲ ನಿಮ್ಮದು ಸತ್ಯ ತ್ಯಾಗ ನಿಸ್ವಾರ್ಥದ ಸೇವೆ ದೇಶಕೆಂದುನಿಮ್ಮದು ದೇಶಕಾಗಿ ಪ್ರಾಣ ತೆತ್ತ ಅಮರರಾದವೀರರೇ ವಂದೇ ಮಾತರಂ ವಂದೇ ಮಾತರಂ ಆ.. ಹಾ.. ಪ್ರತಿ ಕ್ಷಣದ ಎಚ್ಚರದೊಳು ಯೋಧರೆದೆಯ ಕೆಚ್ಚಿನಲಿ ನನ್ನ ದೇಶ ನನ್ನವರಿಗಾಗಿ ಕಾಯ್ವೆನೆಂಬ ಎಚ್ಚರದಲಿ ವೈರಿಗಳೆದೆ ನಡುಗಿಸಿದ ಬೆಂಕಿ ಜ್ವಾಲೆಯೇ ದೇಶಕ್ಕೆಂದು ಬಲಿದಾನ ಕೊಡಲು ಸಿದ್ಧ ಎನ್ನುವ ವೀರರೇ //ವಂದೇ ಮಾತರಂ// ಮೈ ಕೊರೆವ ಚಳಿಯಲ್ಲಿ ದಿಗಿಲಾಗಿಸುವ ಇರುಳಲ್ಲಿ ನೆತ್ತರದ ಒಕೂಳಿಯ ಮಧ್ಯೆಮಾತೆಯ ನೆನೆಯುತಲಿ ದೇಶಕೆಂದೇ ಸಂಜೀವಿನಿಯಾದ ಯೋಧರೆ ಕಡುಕತ್ತಲಲಿ ದೇಶಕ್ಕೆ ಬೆಳಕಾದ ಸೂರ್ಯರೇ //ವಂದೇ ಮಾತರಂ// ಸಕಲ ಸುಖ-ಸಂತೋಷವ ತೊರೆದು ಸಜ್ಜಾದ ಕಲ್ಕಿಗಳೇ ಮನೆ ಮಡದಿ ಮಕ್ಕಳಿಂದ ದೂರವಿದ್ದು ದೇಶವ ಜಪಿಸಿದ ಯೋಗಿಗಳೇ ಜೀವವ ಲೆಕ್ಕಿಸದೆ ಸಜ್ಜಾಗಿ ಎದೆಯೊಡ್ಡಿ ನಿಂತ ವೀರರೇ ದೇಶಕೆಂದೇ ಸದಾ ಸಿದ್ಧ ಕೊರಳು ಎಂದು ನಿಂತ ಛಲಗಾರರೇ ಇಗೊ ನಿಮಗೆ ನಮ್ಮ ಸಾವಿರ ವಂದನೆ //ವಂದೇ ಮಾತರಂ// ಯುವ ಕವಯಿತ್ರಿ: ಪಲ್ಲವಿ ,ಕುಮಾರ,ಕಾಂಬಳೆ BBA student GFGC collage raibag ತಾ. ರಾಯಬಾಗ ಜಿಲ್ಲಾ: ಬೆಳಗಾವಿ ಸಾಕಿನ್: ಜಲಾಲಪೂರ ಫೋನ್ :೯೩೮೦೬೧೦೩೫೫ ಧನ್ಯವಾದಗಳು. .......

Fun week celebration

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