Accounting cycle
Prepare financial statements
What is Step 6?
Fixtures, Fittings Buildings
What are fixed assets?
Use to record all cash paid and received
What is cash book?
Bought goods on Credit?
What is Debit Purchases account and credit Ceditors account?
Post transactions to the ledger
What is Step 3?
Loan, Mortgages
What are long term liabilities?
Used to record goods sold on credit
What is the Sales Journal?
A name to describe a transaction involving both cash and bank account
What is Contra entry?
Use source documents
What is Step 1?
Carriage outwards, rent, carriage inwards
What are expenses?
Used to record goods sold for cash
What is the cashbook?
When a customer returns goods to the business
What is Return inwards?
Prepare the trial balance
What is Step 4?
Owner's investment in the business
What is capital?
What is returns outwards Journal?
A person to whom the business owes money
What is Accounts payable?
Owner in a corporation.
What is a stockholder?
Make adjustments
What is Step 5
Owner uses funds in the business to rent for private property
What is Drawings?
Used to record depreciation expense
What is General Journal?
Bought fixed assets paid partly by cash and the balance on credit.
What is Debit fixed asset account, credit cash and credit creditor with balance?