Answer to Question #208532 in Management for Roshaan

Question

How should I record transactions?

Answer 1

Recording transactions follows the following procedure:-

·        Organizing the transactions.

·        Journal entries recording.

·        Posting the journal entries recorded to the general ledger.

·        Viewing unadjusted trial balance.

·        Making adjusting entries to the unadjusted trial balance.

·        Preparing a trial balance that is adjusted (Warren et al, 2020).

·        Producing statements of accounts or financial statements.

·        Closing the accounting books for the current month.

·        Starting the coming or the next cycle.

References

Warren, C.S., Jonick, C. and Schneider, J., 2020. Financial accounting. Cengage Learning.