What is the process of accounting?



Asked by Dhyeya | 3rd Jul, 2018, 10:17: PM

Expert Answer:

The steps involved in accounting process includes
(i) Identifying Financial Transactions or Events
(ii) Recording these Transactions- in the books including journal, cash book, prchase book, sales book, etc.
(iii) Classifying  i.e. Posting into Ledger Accounts
(iv) Summarising- by presenting the accounting information in form of Trial Balance, Trading and P&L Account and the Balance Sheet
(v) Analysis and Interpretation and
(vi) Communicating to the users.

Answered by  | 4th Jul, 2018, 10:20: AM

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