7/17/2019 1d

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1. d)

I. Source documents – as an evidence for business transaction and it describes

transactions and events entering the journalizing.

II. Journalizing – The book of original / rime entr!. It sho"s an e#lanations of 

each transactions$ the account affected$ "hether those accounts are increased

or decreased and b! "hat amount.

III. %osting to ledger – The act of transferring the information in journal to

aroriate accounts. &edger is a summar!$ b! account of all transactions

affecting the account.

I'. (alancing closing off accounts – (alancing is adding the increases to and

subtracting the decreases from the revious balance in an account so that both

sides come u to the same amount. *losing an account means to bring the

balance to zero. It transfers balances from revenue and e#enses account into

the Income Statement.

'. %reare trial balance – + trial balance is a list of the balances in the ledger at the

end of an accounting eriod$ divided bet"een those accounts "ith debit balances

and those "ith credit balances.

VI. %reare financial statement – ,hen trial balance is comleted$ financial

statement is reall! just a matter of utting trial balance into roerl! formatted

statements.