Accounting Cycle

ACCOUNTING CYCLE

Accounting cycle is accounting procedure that generally used by company for record transaction and make financial statement.

Accounting cycle is transaction analysis and others events. Transaction as external event , can shape exchange where  both another accept and transfer something who has value , example purchase and sale goods and service.

General Journal

 Variety transactions who influence elements base bussines ( aktiva, passive, and ekuitas) is category and collected in accounts. General ledger is collection from almost accounts. In practice , transaction and certain events at the beginning doesn’t record in general ledger because one transaction will influence two accounts or more, where each other  accounts is found in different page  in general ledger. To handle this problem and record every transaction and event as complete in one place, used Journal. The simple shape of journal is transaction list or chronology that expression in debetand credit in certain accounts. That’s names general journal.

Trial Balance

            Trial balance is accounts list with balance in certain times. Usually , trial balance is made in last periode accounting . The purpose of trial balance for  proving similiarity mathematics of debet and credit after posting is did. Trial balance is used for detecting  errors  in make a general journal and posting  , and it’s used for arranging financial statement.