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Unformatted text preview: ) that are
involved in the transaction.
Apply the rules to determine which accounts are
‘debited’ and which are ‘credited’.
At least one account must be ‘debited’ and one
The totals of debited accounts must equal the
total of credited accounts.
total How the accounting cycle works –the
bookkeeper’s The bookkeeper records these journal entries
using the ‘double-entry’ system during the
accounting period - known as ‘posting’.
accounting At the end of the accounting period, the
bookkeeper summarizes the balances of each
account and presents these to the accountant
in a statement - known as ‘taking out a ‘Trial
Balance’. How the accounting cycle works- the
accountant’s The accountant
The accountant takes the data in the Trial
Balance as the basis for producing the
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