Accounting cycle
1- Collecting positive documents and documents:
The meaning of the receipt invoice is the receipt of payment, bank receipts, etc.
2- Analysis of documents and positive documents:
The meaning of analysis is that of an accountant who, for example, if he has a receipt or an invoice in his hand, he thinks about how it is, etc.
3- Accounting document:
After the analysis, the accountant should refer to the accounting document for the relevant registrations, which is done in accounting computer software in most offices today.
4- Newspaper office:
Then it should be registered from the accounting document of the newspaper office, which is part of the legal offices. It is worth mentioning that the newspaper office is exactly the same as the accounting document.
5- General ledger:
After registering the journal book, the balance of each account must be transferred in the ledger, which is included in the form of each account statement.
6- Certain office:
After the general ledger, each of the accounts that have details, like a bank, for example, Mellat Bank, should be entered into the ledger separately.
7- Balance withdrawal from the general ledger accounts:
At the end of the financial year, balances should be taken from all the accounts of the general ledger.
8- Trial balance:
After taking the balance from the general ledger accounts, all the accounts should be included in a special order that will be explained later in a chapter called the trial balance. It is worth mentioning that the trial balance has two columns.
9- Correcting accounts:
At the end of each financial period and after the creation of a trial balance, a series of corrections must be made in the financial books. These corrections mainly include the depreciation of fixed assets, as well as the reserve for doubtful debts, rent and insurance costs, and salaries that were paid due to reasons such as the accountant’s forgetfulness. It has not been seen.
10- Modified trial balance:
After making the corrections, the accountant should design a trial balance that includes all the corrections, which is called the corrected trial balance.
11- Wazian’s profit statement:
The result of the activity of any company, including service, commercial and production, is determined from the profit and loss statement, which is different in each unit from other units.
12- Capital statement:
The capital statement is also in the order of the initial capital and then if there is reinvestment and also the withdrawal is deducted and finally the profit or loss during the financial year is added or deducted to determine the amount of capital at the end of the period. The capital statement in all Commercial and production service units are usually of the same form.
13- Balance sheet:
The balance sheet is designed in two forms, which will be fully explained later, but the most important is the T-shaped balance sheet, which includes assets on one side and total liabilities and capital on the other side, which should be reconciled with each other. be equal and balanced based on the accounting equation.
14- Closing temporary accounts:
Each participant has 2 types of accounts: permanent and temporary accounts.
Temporary accounts, which are different in each unit, are usually closed at the end of the year to the profit and loss summary account. Of course, in all units, the cost is a temporary account.
15- Closing balance:
Before closing the permanent accounts, a list of them should be prepared in an invoice under the title of closing balance.
16- Closing permanent accounts:
After closing the temporary accounts, it is time to close the permanent accounts. The main permanent accounts include assets, liabilities and capital.
17- Opening balance in the new fiscal year:
Before opening permanent accounts in the new financial year, a list of them must be prepared in a statement under the title of opening balance.
18- Opening permanent accounts in the new fiscal year:
All permanent accounts are opened with an opening balance account.
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