Professional Documents
Culture Documents
ACCOUNTING CYCLE
Final Accounts
Step 6 Position Statement
Date
Particulars
. To. (Being)
CASH
Debit:
BOOK
The cashbook is classified into 4 types viz., 1. Single column cash book 2. Two columnar cash book 3. Three columnar cash book 4. Petty cash book
LEDGER Also called as General Ledger, this is a principal book that contains all the accounts i.e., accounts of Assets liabilities, capital, revenue and expenses. The entries from the books of original entry are transferred to this book. Hence it is also called as a book of final entry. There are a number of accounts in a general ledger. All similar transactions are grouped under one account.
Dr
Date Particulars Folio Amount Rs. -------Date Particulars Folio
Cr
Amount Rs.
--------
The opening and closing balances will appear only in case of assets, liabilities and capital accounts but not in case of incomes and expenditures.
Cr
L.F. Amount Rs. Date Particulars L.F. Amount Rs.
-------
-------
Cr
Cash Date Rs.
------
Particulars
L.F
Discount Rs.
Cash Rs.
------
OR
Cr
Bank Rs.
------
Date
Particulars
L.F
Discount Rs.
Bank Rs.
------
OR
Cr
Cash Rs. Bank Rs.
------
Date
Particulars
L.F
Cash Rs.
Bank Rs.
------
Cr
Bank Rs.
------
------
OR
Cr
Total Rs.
PURCHASES BOOK
This is a subsidiary book in which all the credit purchases made by the organisation is recorded. The monthly total from the purchase book is transferred to the General Ledger to the Purchases Account.
Date Purchase invoice no. Name of the supplier LF Details Rs. Ps. Total Amount Rs. Ps.
LF
Details
Total Amount
Rs. Ps.
Rs.
Ps.
SALES BOOK
The credit sales are recorded in this book. The monthly totals are transferred to the sales account in the General Ledger.
Date Sales invoice no. Name of the purchaser LF Details Rs. Ps. Total Amount Rs. Ps.
SALES RETURNS BOOK A book of account in which all the sales returns (returns outwards) made by the organisation are recorded.
Date Credit Note No. Name of the Purchaser LF Details Rs. Ps. Total Amount Rs. Ps.
JOURNAL PROPER
Those journal entries that cannot be recorded in any of the subsidiary books are recorded in the journal proper. The following are recorded in the journal proper:
a. b. c. d. e.
Opening Entries Closing Entries Transfer Entries Adjustment Entries Rectification Entries
TRIAL BALANCE
It is a statement that shows the balance in all the accounts in a ledger. It contains all the debit and credit balances. A trial balance is a list of debit and credit balances of all the ledger accounts prepared on any particular date to verify whether the entries in the books of accounts are arithmetically correct or not.
Sl. No. Head of Account LF Debit Balance Rs. Ps. Credit Balance Rs. Ps.