Question

Mr. Shil Wants to record the financial transactions of his newly started business.
Discuss what accounting steps/stages he need to adhere so that the transactions can be duly
recorded and processed in order to prepare the financial statements.

Answer 1

1. Examine transactions by analysing the source document.
2. Recordstransactions in the journal.
3. Post record entries to the ledger account.
4. Complete the worksheet by preparing the account balance
5. Prepare the financial statement
6. Record and post the adjusting entry
7. Record and post the closing entry
8. Prepare the final balance sheet