1)Prepare a statement of affairs at the beginning of the period (a list of all assets and liabilities) to determine the beginning capital.
2)Open and post the balances and transactions to these 3 relevant accounts (i.e. the cashbook (for both cash in hand and bank), sales ledger control account and purchases ledger control account.
Any other account can be opened where necessary.
3)Make adjustments for any accruals or prepayments.
4)Extract a list of the balances. (Trial balance).
5)Prepare the final accounts.
Titany answered the question on December 14, 2021 at 11:54
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