4 basic steps for Bookkeeping to match trail balance

4 basic step for Bookkeeping

Bookkeeping has its 4 basic steps:

1) If any transaction entering In the accounting cycle must observe its supporting Documents
a) Check relation of entry
b) Check description
c) Check billing/ documents date and match with the Accounting period
d) Check amount in words and digit
e) Check inspection report
f) Check inventory receipts from Company QC department
g) Check quotation as per company law
h) Check concern department requirements and made
i) Check billing calculations
j) Check company name on bill or documents

2) Allocation of debit and credit entry

a) Check allocation as per the chart of account
b) Check costing station
c) Sub allocation
d) Check allocation as per profit and loss account , balance sheet , manufacturing account, trading account

3) Posting to concern Ledger Accounts

a) Check the accounts as per index
b) Check the folio no.
c) Insert in proper place in ledger to follow date
d) Write figures in amount colnm start from right hand side
e) Ensure you have written folio no on both side Cash book vs ledger
f) Make sure about amount written in ledger should be same with cash book

4) Posting from other sources as bellow

a) Check posting from Purchase Book
b) Check posting from Sales book
c) Check posting from general Journal
d) Check posting from others direct or indirect books of accounts
e) Check all above source entries have been posted with equal debit and credit effects

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