Accounting Cycle for Service Rendering Business
A Lecture Note
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'Accounting is a language of business,' so to understand and able to deal with business world, learning and reading more about accounting is credible. This material is developed to help students and accountants in understanding and completing accounting cycle more easily. The text on hand is compiled from different relevant books, modules and other reference materials which are acknowledged. The first chapter gives an introduction about accounting and business, the role of accounting in business, types of accounting profession, accounting equation, how to understand the effect of business tran...
'Accounting is a language of business,' so to understand and able to deal with business world, learning and reading more about accounting is credible. This material is developed to help students and accountants in understanding and completing accounting cycle more easily. The text on hand is compiled from different relevant books, modules and other reference materials which are acknowledged. The first chapter gives an introduction about accounting and business, the role of accounting in business, types of accounting profession, accounting equation, how to understand the effect of business transaction, and how to prepare financial statements. The second chapter mainly deals with completion of full accounting cycle for service rendering business starting from understanding about classification of accounts, debit and credit rule, recording transaction on general journal, posting to the general ledger, preparing trail balances, making adjusting entries for accruals, deferrals and other estimated items. It also covers other parts of accounting cycle like preparing worksheet, financial statements, making closing entries and finally ends with preparation of post-closing trail balance.
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