Theme: balance sheet

Theme: Registers and accounting forms

Lecturer: G.D.Tashmanov

TASHKENT INSTITUTE OF FINANCE

Depertment of ACCOUNTING

Decepline of Financial and Management accounting

TASHKENT 2020

LEARNING OUTCOMES

Students should be able to:

• The recording process
• Types of journals
• Ledger
• Posting to the Ledger

THE RECORDING PROCESS

Step 1: Analyzing transactions

Step 2: Journalizing

Step 3: Posting to the Ledger

TYPES OF JOURNALS

• Journals is also known as the book of first entry or book of original entry.
• There are eight types of journals maintained by organizations which are as follows:

1. The cash book

2. The purchase book

3. The sales book

TYPES OF JOURNALS (CONT.)

4. The purchase return book;

5. The sales return book;

6. The accounts receivable book;

7. The account payable book, and

8. The journal proper.

• Only the cash book acts as both journal and ledger.

Posting to the Ledger

• The transferring process from the journal to the ledger is known as posting.
• Posting involves the following steps:
• Step 1: In the ledger, enter the date, journal page and the debit amount shown in the journal in the appropriate columns of account(s) debited.
• Step 2: In the reference column of the journal, write the account number to which the debit amount was posted.

POSTING TO THE LEDGER (CONT.)

• Step 3: In the ledger, enter the date, journal page and the credit amount shown in the journal in the appropriate columns of account(s) credited.
• Step 4: In the reference column of the journal, write the account number to which the credit amount was posted.

TRIAL BALANCE

• Trial balance is a list of accounts and their balances in the ledger accounts at the end of a given accounting period.
• Trial balance is considered as an easiest or basic procedure to check whether each transaction is recorded in the journal and transferred to the ledger correctly.

TRIAL BALANCE (CONT.)

• The accounts in the trial balance are normally listed in certain groups or sequence. First, the accounts in the income statement will be listed, followed by those accounts in statement of changes in equity and finally, the accounts in the balance sheet.

BASIC FINANCIAL STATEMENTS

• Income Statement.
• Statement of Changes in Equity.
• Balance Sheet.

Thank you for attention !!!