From Transactions to Reports

Now that you have seen a variety of components of the accounting processes it is time to undertake a complete tour of that process. We will work through an exercise that includes :-

Creation of a business,
Processing a series of transactions to T accounts
Balancing the accounts and preparation of a Trial Balance
Closing down the Accounts and the preparation of the final Reports

Lance Boyle commenced business on
June 1 Depositing $5000 cash in a business bank account.
June 2 Paid for office expenses $200
June 3 Bought $2500 of stock from F Fish.
June 4 Paid $500 rent.
June 7 Sold $150 of stock for cash.
June 9 Sold $250 of stock to B Brown.
June 15 Paid F Fish $1000.
June 20 Received $100 from B Brown.

Posting the Transactions to the Accounts

The posting to the accounts has been colour coded to highlight the double entry.

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