ACCOUNTING EXPERTISE

ALL ABOUT ACCOUNTING : 46th BLOG           💎 ACCOUNTING💎 ★ Accounting exercise and practices :   Lesson : 5 [Part : 1] Hi friends  🙏 Today's discuss Relationship between Financial Statements.                               So let's discuss .... * RELATIONSHIP BETWEEN FINANCIAL STATEMENTS : The financial statements are comprised of the income statement, balance sheet, and statement of cash flows. These three statements are interrelated in several ways, as noted in the following points: THE INCOME STATEMENT : The net income figure in the income statement is added to the retained earnings line item in the balance sheet, which alters the amount of equity listed on the balance sheet. The income statement is a financial report that shows an entity's financial results over a specific period of time. The time period covered is usually for a month, quarter, or year, though it is p...

ALL ABOUT ACCOUNTING : 45th BLOG           💎 ACCOUNTING💎 ★ Accounting exercise and practices :   Lesson : 4 [Part : 6] Hi friends  🙏 Today's discuss remaining part of summarizing changes in financial position                               So let's discuss .... ★  SUMMARIZING CHANGES IN FINANCIAL POSITION :   Once the trial balance is completed (and balanced), adjustments are made to record transactions that have not previously been recorded, such as bank charges, depreciation, loan loss provision, etc. For example, after an adequate loan loss reserve has been determined (discuss in Finance module)  an entry must be made to record a loan loss provision. This is done periodically,  either monthly or annually. The same occurs with a depreciation charge.  When a capital asset is purchased, the entire cost does not immediately go on the income stateme...

ALL ABOUT ACCOUNTING : 44th BLOG           💎 ACCOUNTING💎 ★ Accounting exercise and practices :   Lesson : 4 [Part : 5] Hi friends  🙏 Today's discuss remaining part of summarizing changes in financial position                               So let's discuss .... ★  SUMMARIZING CHANGES IN FINANCIAL POSITION :   ⭐ TRIAL BALANCE : At the end of an accounting period (usually monthly ), once all journal entries have been made and posted, It is necessary to verify that the debits and credits are in balance. This procedure is referred to as preparing the Trial Balance.  The Trial Balance is prepared by taking the account balances from the general ledger and listing the accounts having debit balances in one column and those having credit balances in the other column. Next, The debit balances are totalled and the credit balances are totalled. Finally, The sum of the ...

ALL ABOUT ACCOUNTING : 43rd BLOG           💎 ACCOUNTING💎 ★ Accounting exercise and practices :   Lesson : 4 [Part : 4] Hi friends  🙏 Today's discuss remaining part of summarizing changes in financial position                               So let's discuss .... ★  SUMMARIZING CHANGES IN FINANCIAL POSITION :   ⭐ ACCOUNT BALANCES : Once journal entries have been made and the general journal completed, the account balances for each ledger account must be determined. This is done by listing all of the debits and credits by ledger account into the general ledger. The process of copying journal entry information from the general journal to the general ledger is called posting. In the posting process, journal debits become ledger account debits, and likewise, journal credits become ledger account credits. An account balance can be determined at any point in this proces...