Sekolah Tinggi Akuntansi

Negara

Accounting Cycle
Name
: Taufik Afandy
Hidayat
Class / No : 1-AA / 33
NPM
: 143060020033
Specialization : D-III

Outline

1. Introduction of Accounting Cycle

2. Diagaram Accounting Cycle
3. Transaction
4. Jurnal Entries
5. Posting
6. Trial Balance
7. Worksheet
8. Adjusting Journal Entries
9. Financial Statement
10. Closing The Books
11. Conclusion
12. Resources

Accounting Cycle
Accounting cycle is steps involved in

accounting for all of the business activities

during an accounting period.
Its callled a cycle because the accounting
workflow is circular. These steps are
repeated each reporting period.

Accounting
Cycle

Transaction
Transaction is first event in accounting cycle
In here, we identification financial acivity about

what did transaction use

The transaction was proof with document

Example of transaction

Example Transaction in Task

Journal Entries
The transaction is recorded in the journal

as a debit and a credit.

In here, we also maintaining the journals
chronological order of transaction.
We can record transaction in the journal
every transaction continuous or after all
transaction was done that day.

Journal Entries

Posting
Posting is transferring transaction

information recorded in journal to the

account in ledger.
When posting, we need a lot of ledger
because adapts to the accounts that are
used in journal entries.
Function posting is arrange transaction be
easier.

Ledger 4 coloumn model

Trial Balance
At the end of period, we must calculate a

trial balance to verify that the sum of

debits is equal to the sum of credits.
This also called Unadjusted Trial Balance
because almost all of transaction in here,
some transaction wasnt here is expense
and revenue.

Trial Balance

Worksheet
If you look for errors and make corrections

called adjustment, which are tracked on a

worksheet.
Adjustment are also made for accrued and
deferred items at that period. So, that
make to be more accurately match in
period.

Worksheet

Adjusting Journal Entries

Here, we post any correction needed to the

affected accounts once our trial balance

shows the account will be balanced on the
adjustment needed are made to the
accounts.
At here, we can see new balance and some
new account after adjusting. So, this make
new trial balance called adjusted trial
balance.

Adjusting Journal Entries

Adjusted Trial Balance

Financial Statement
After we adjusting, we prepare some financial

statement, that is income summary,

statement of owners equity, and balance
sheet.
When we made financial statement, we use
accounts in adjusted trial balance.
This financial statement is principal output in
accounting process.

Financial Statement

Closing The Books

After we do all step, the last step is close

the book before enter to new period.

Because, accumulated revenue and
expense only reported in certain period.
So, we made those accounts to be zero
balances.
At here, we also used reversal journal to
made those accounts to be zero if those
account wasnt at usually position. We use
it for consistency of approach used.
After this step finished, we can begin
accounting cycle again for next period.

Correction of Error
After completing accounting cycle and have

some mistakes, there is additional journal

known as correction of error (correcting
entries).
Function of this is add some transaction that
tucked away or fix recording that have any
error.
Why must do it? Because to prevent the
processing of wrong data which results in
unreliable financial statements.

Example Correction of Error

On April 4, 2010, Kelly Consulting received cash from

clients as an advance payment services to be

provided $5,000.00.
The correct entry is:
Apr 4 Cash 370.00
Unearned fees 370.00
Suppose the bookkeeper, The entry made was:
Apr4 Cash 370.00
Acoount Receivable 370.00
The correcting entry would then be:
Apr 30 Account Receivable 370.00
Unearned fees 370.00

Example Correction of Error

On April 6, 2010, Kelly consulting collected

a receivable from a customer, $1,800.00.

The Correct entry is :

Apr6 Cash
1.800.00
Account Receivable 1.800.00
Suppose the bookkeeper, The entry made was:
Apr6 Cash
1.000.00
Account Receivable 1,000.00
The correcting entry would then be:
Apr30 Cash
800.00
Account Receivable 800.00

Conclusion
Accounting cycle is process to make business

financial statement in certain period.

At here, we known our profit or loss at that
period. So, we can choose business strategy
for next period.
Accounting cycle is basic before we do
accounting.

Resources
Bambang Suprihadi, S.S., M.Pd., Worksheet

metting 3
Warren and friends, Principal Accounting 23 edition
http://www.quickmba.com/accounting/fin/cycle ,
visited November 15, 2014
http://jurnal-akuntansi.blogspot.com/2012/06/sik
lus-akuntansi-keuangan.html?m=1
, visited November 15, 2014
http://jurnalakuntansikeuangan.com/2011/09/sikl
us-pembukuan-dan-akuntansi-selangkah-demi-selan
gkah/
, visited November 15, 2014
http://megasenja.wordpress.com/20 12/02/14/
misteri-di-balik-siklus-akuntansi/ , visited

Thank You