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Question
What are the six steps for recording a business transaction?
What are the six steps for recording a business transaction?
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Solution
The six steps for recording a business transaction are:
- Analysing the transactions.
- Recording the transaction in journal
- Posting of debit and credit from the journal entries to the respective ledgers
- Adjusting the trial balance.
- Preparing financial statements
- Removing any temporary account created.
Also read:
- Difference Between Cash Basis and Accrual Basis of Accounting
- Accrual Basis of Accounting
- GAAP Generally Accepted Accounting Principles
- Applicability of IND AS
- Difference Between IFRS and IND AS
- Difference Between GAAP and IFRS
Learn about more commerce questions and answers from different topics in business studies, economics and accountancy from our website.
The six steps for recording a business transaction are:
- Analysing the transactions.
- Recording the transaction in journal
- Posting of debit and credit from the journal entries to the respective ledgers
- Adjusting the trial balance.
- Preparing financial statements
- Removing any temporary account created.
Also read:
- Difference Between Cash Basis and Accrual Basis of Accounting
- Accrual Basis of Accounting
- GAAP Generally Accepted Accounting Principles
- Applicability of IND AS
- Difference Between IFRS and IND AS
- Difference Between GAAP and IFRS
Learn about more commerce questions and answers from different topics in business studies, economics and accountancy from our website.
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