Accounting cycle

Accounting cycle cosist on the following steps.

1.collecting data
2.making journal
3.posting entries in ledgers
4.unadjusted trial balance
5.making adjustig entres
6.Adjusted trial balance
7.Finicial statements
8.Closing books


1.Collection of data:
                                First of all we collect the data from the transactions we make in our daily business
2.Making journal:
                                          after collecting data we make the journal entries and write that what is debit and what is credit.
3.Making ledger
                                      when we make the journal entries than we post these entries into the ledger accounts
4.Unadjusted trial balance:
                                                               after prepration of ledger accounts we make the unadjusted trialbalance.
5.Adjusted entries:
                                Than we make the adjusted entries that are make in the preceeding time
6.Adjusted trial balance:
                                        After making the adjusted entries we make the adjusted trial balaance.
7.Finicial statements:
                                   After making the adjusting entries we make the finicial statements in which income statement,statement of retain earning and balance sheet are included.
8.Closing books:
                                        after preparing the finicial statements we make the closing entries and than close the books.