Elemen-elemen asas dalam proses perakaunan.
Dr. Cr. Inventory (ending) XX,XXX Purchase Discounts X,XXX Purchase Returns and Allowances X,XXX Cost of Goods Sold XXX,XXX Inventory (beginning) XX,XXX Purchases XXX,XXX Transportation-In X,XXX 16. In summary, the steps in the accounting cycle performed every fiscal period are as follows:
Prosidur dan Proses Merekod Catatan Bergu
1. Proses perakaunan boleh diterangkan sebagai satu set prosidur yang digunakan dalam mengenalpasti, merekod, mengkelas, dan mentafsir maklumat yang berkait dengan transaksi dan lain-lain peristiwa bagi sesuatu entiti perniagaan. Untuk memahami proses perakaunan, seseorang itu mesti mengetahui terminologi asas yang digunakan dalam proses perakaunan.
Terminologi asas tersebut adalah: peristiwa (event), transaksi, akaun benar, akaun nominal, lejer, jurnal, posting, imbang duga, pelarasan catatan, penyata kewangan, dan catatan penutup.Terma-terma ini merujuk kepada pelbagai aktiviti yang membentuk kitaran perakaunan.
2.Catatan bergu perakaunan merujuk kepada proses yang digunakan dalam transaksi. Terma debit dan kredit digunakan dalam proses perakaunan untuk menunjukkan kesan transaksi terhadap baki akaun-akaun.
Bahagian debit bagi setiap akaun ialah sebelah kiri; manakala bahagian kanan pula ialah bahagian kredit. Pertambahan aset dan belanja akan dicatat di bahagian debit dan pengurangannya dicatat pada bahagian kredit. Pertambahan liabiliti, ekuiti pemilik, dan hasil akan dicatat di bahagian kredit, penyusutannya akan dicatat di bahagian debit.
The Accounting Cycle
3. In a double-entry system, for every debit there must be a credit and vice-versa. This leads us, then, to the basic equation in accounting: Assets = Liabilities + Stockholders’ Equity.
4. The first step in the accounting cycle is analysis of transactions and selected other events. The purpose of this analysis is to determine which events represent transactions that should be recorded.
5. Events can be classified as external or internal. External events are those between the enterprise and its environment, whereas internal events relate to transactions totally within the enterprise.
6. Transactions are initially recorded in a journal, sometimes referred to as the book of original entry. A general journal is merely a chronological listing of transactions expressed in terms of debits and credits to particular accounts. No distinction is made in
a general journal concerning the type of transaction involved. In addition to a general journal, specialized journals are used to accumulate transactions possessing common characteristics.
7. The next step in the accounting cycle involves transferring amounts entered in the journal to the general ledger. The ledger is a book that usually contains a separate page for each account. Transferring amounts from a journal to the ledger is called posting. Transactions recorded in a general journal must be posted individually, whereas entries made in specialized journals are generally posted by columnar total.
8. The next step in the accounting cycle is the preparation of a trial balance. A trial balance is a list of all open accounts in the general ledger and their balances. An entity may prepare a trial balance at any time in the accounting cycle. A trial balance prepared after posting has been completed serves to check the mechanical accuracy of the posting process and provides a listing of accounts to be used in preparing financial statements.
9. Preparation of adjusting journal entries is the next step in the accounting cycle. Adjusting entries are entries made at the end of accounting period to bring all accounts up to date on an accrual accounting basis so that correct financial statements can be prepared. Adjusting entries are necessary to achieve a proper matching of revenues and expenses in the determination of net income for the current period and to achieve an accurate statement of the assets and equities existing at the end of the period. One common characteristic of adjusting entries is that they affect at least one real account (asset, liability, or equity account) and one nominal account (revenue or expense account). Adjusting entries can be classified as: prepaid expenses, unearned revenues, accrued revenues, and accrued expenses.
10. Prepaid expenses and unearned revenues refer to situations where cash has been paid or received but the corresponding expense or revenue will not be recognized until a future period. Accrued revenues and accrued expenses are revenues and expenses recognized in the current period for which the corresponding payment or receipt of cash is to occur in a future period. Estimated items are expenses such as bad debts and depreciation whose amounts are a function of unknown future events or developments.
Adjusted Trial Balance
11. After adjusting entries are recorded and posted, an adjusted trial balance is prepared.
12. From the adjusted trial balance a company can directly prepare its financial statements.
13. After financial statements have been prepared, nominal (revenues and expenses) accounts should be reduced to zero in preparation for recording the transactions of the next period. This closing process requires recording and posting of closing entries. All nominal accounts are reduced to zero by closing them through the Income Summary account. The net balance in the Income Summary account is equal to net income or net loss for the period. The net income or net loss for the period is transferred to owners’ equity by closing the Income Summary account to Retained Earnings.
Post-Closing Trial Balance
14. A third trial balance may be prepared after the closing entries are recorded and posted. This post-closing trial balance shows that equal debits and credits have been posted properly to the Income Summary account.
Closing Inventory and Related Accounts
15. When inventory records are maintained on other than a perpetual basis, an adjustment is usually needed to reflect the difference between the beginning and ending inventory. This year-end inventory adjustment eliminates all nominal accounts related to the purchase of inventory by transferring them to Cost of Goods Sold. The adjustment also eliminates the beginning inventory amount and establishes the amount of ending inventory to be included on the balance sheet. A typical inventory adjusting entry would include debits and credits to the following accounts:
a. Enter the transactions of the period in appropriate journals.
b. Post from the journals to the ledger (or ledgers).
c. Prepare an unadjusted trial balance.
d. Prepare adjusting journal entries and post them to the ledger(s).
e. Prepare a trial balance after adjusting (adjusted balance).
f. Prepare the financial statements from the adjusted trial balance.
g. Prepare closing journal entries and post them to the ledger(s).
h. Prepare a trial balance after closing (post-closing trial balance).
i. Prepare reversing entries (optional) and post them to the ledger(s).
Cash Versus Accrual Basis Accounting
17. Cash Basis Accounting Versus Accrual Basis Accounting, is presented in the Appendix A of Chapter 3 for the purpose of demonstrating the difference between cash basis and accrual basis accounting. Under the strict cash basis of accounting, revenue is recognized only when cash is received, and expenses are recorded only when cash is paid. The accrual basis of accounting recognizes revenue when it is earned and expenses when incurred without regard to the time of receipt or payment of cash.
18. Reversing entries is the final step in the accounting cycle. A reversing entry is made at the beginning of the next accounting period and is the exact opposite of the adjusting entry made in the previous period. The recording of reversing entries is an optional step in the accounting cycle that may be performed at the beginning of the next accounting period. The entries subject to reversal are the adjusting entries for accrued revenues and accrued expenses recorded at the close of the previous accounting period.
19. Work sheet serves as an aid to the accountant in adjusting the account balances and preparing the financial statements. The work sheet provides an orderly format for the accumulation of information necessary for preparation of financial statements. Use of a work sheet does not replace any financial statements, nor does it alter any of the steps in the accounting cycle.
Purchase Returns and Allowances
Cost of Goods Sold
16. In summary, the steps in the accounting cycle performed every fiscal period are as follows: