Accounting Cycle knowledge and strucutre

          Accounting cycle

Accounting cycle create a vital role in Accounting. It’s the collective process of recording and processing. It has following steps of process.

·        General journal

·        Ledger

·        Trial balance

·        Income statement

·        balance

Analysis

             First of all we analysis all transaction of business or event

Journal

           Journal is a structure in which these transaction are post them to   make for record of transaction.

                           Journal  general

Date	Description	debit	credit
1	cash	1000
	medicine		1000

 

 Ledger

           A collection of financial account is known as ledger.

In this step we make separate accounts of all accounts

                   

                        Cash

Date	Description	Debit	Date	Description	Credit
1	cash	1000
			Balance cd		1000
	Balance bd	1000

                      

 Trial balance

                    After ledger we make trial balance to find their result.

Date	Description	debit	credit
	cash	1000
	medicine		1000
	total	1000	1000

Financial statement

      It consist of two parts

1.     Income statement

2.     Balance sheet

Incomestatement

           In organization it shows profit and expense of the company

Balance sheet

 It shows the financial position of the company

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