Lecture 5 Week 6

Journaliseclosingentries 12journalisereversingentries

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Unformatted text preview: eral ledger (accounts adjusted) 8. Journalise closing entries 12. Journalise reversing entries General journal Continued Next Slide 13. Post reversing entries to general ledger 3 General ledger ( p/ ) (temp a/c’s closed) 10. Prepare post closing trial balance 11. Prepare financial statements Trial balance (adjusted) 7. Prepare adjusted trial balance 2 Trial balance (post closing) Work sheet Financial statements General journal General ledger 4 1 4/04/2013 CLOSING TEMPORARY ACCOUNTS USING THE WORKSHEET TO RECORD ADJUSTING ENTRIES • Income and expense accounts must be reduced to zero at the end of each period to determine the profit or loss for the period • These are called closing entries • Income and expense accounts then begin the next accounting period with a zero balance • The Profit or Loss Summary account is used to calculate profit • • • • Gathers information together in one place Enables preparation of inte...
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