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1the Accounting Process A Review
1the Accounting Process A Review
1the Accounting Process A Review
ACCOUNTING
PROCESS (A
REVIEW)
Adoption of:
Accounting for Partnership and
Corporation by:
Gloria R. Baysa
Ma. Concepcion Lupisan
INTRODUCTION:
- posting of entries.
Information to
be collected will be
based on the
different business
documents that may
arise from the day to
day transactions of
an entity.
DIFFERENT BUSINESS DOCUMENTS
PREPARING THE
Statement of Comprehensive Income
FINANCIAL
STATEMENTS Statement of Cash Flow
Notes
Adjusting data discussed above if
present are to be journalized and
ADJUSTING posted. The balances however of the
nominal accounts which consists of
AND CLOSING
income, expenses and drawing
ENTRIES ARE accounts are to be closed to Income
JOURNALIZED Summary Account. The balance of the
AND POSTED Income Summary account is then
transferred to the owners’ equity
account.
The closing entries are:
To close the balance of Income Summary
To close the balances of income accounts:
accounts
Revenue/income xxx
Income Summary xxx
(debit balance)
Capital xxx
To close the balances of expense accounts:
Income Summary xxx
Income Summary xxx
Expenses xxx
To close the balance of Income Summary accounts To close the balance of the drawing account
(credit balance) Capital xxx
Income Summary xxx
Capital xxx
Drawing xxx
PREPARING A POST-CLOSING TRIAL
BALANCE