Process of Book-Keeping

STEP 1: Identifying and Analyzing Business Transactions
The first step involves the identification and analysis of the source documents, events and transactions of the business such as vouchers, invoices etc.
STEP 2: Journalising the Business Transactions
After analyzing the source documents, transactions and events, these transactions are recorded in the journal. A journal entry refers to the complete record of each transaction that means for every debit there will be a corresponding credit and vice versa. The transactions are recorded in the journal following the double entry BookKeeping.
STEP 3: Posting Into Ledger Accounts
A ledger is a principal book in which amounts from the journal are posted in different accounts. On debit of any account, there should be a corresponding credit so that the total matches later. Every account has a debit and a credit side. Every entry entered in the journal moves to one or more ledgers.
STEP 4: Preparation of a Trial Balance
A trial balance is the statement of all the ledger accounts and their corresponding balances. A trial balance is prepared to ensure that the sum of debits equals the sum of credits to verify that all the transactions have been entered correctly.

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