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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 (
(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)
sheet Financial statements
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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- Spring '14