{"id":1724,"date":"2023-09-24T14:36:47","date_gmt":"2023-09-24T14:36:47","guid":{"rendered":"https:\/\/mudabicara.com\/en\/?p=1724"},"modified":"2023-09-24T14:39:49","modified_gmt":"2023-09-24T14:39:49","slug":"an-example-of-trading-company-accounting-cycle-material","status":"publish","type":"post","link":"https:\/\/mudabicara.com\/en\/an-example-of-trading-company-accounting-cycle-material\/","title":{"rendered":"An Example of Trading Company Accounting Cycle Material"},"content":{"rendered":"<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Setting up a trading company is often an option for business people to expand their business to a larger scale. <\/span><span style=\"vertical-align: inherit;\">Of the many things that must be learned before starting a company, accounting is very important to understand. <\/span><span style=\"vertical-align: inherit;\">Interested in studying the accounting cycle of trading companies? <\/span><span style=\"vertical-align: inherit;\">Read the following article until the end.\u00a0<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">In general, a trading company&#8217;s accounting cycle can be carried out by preparing financial reports for a certain period. <\/span><span style=\"vertical-align: inherit;\">This calculation starts from recording transactions, preparing financial reports, to closing the balance in the reversing journal. <\/span><span style=\"vertical-align: inherit;\">That way, it will be much easier for you to know the company&#8217;s profit and loss.<\/span><\/span><\/p>\n<div id=\"grame-1453418323\" class=\"grame-amp-1\"><\/div>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Let&#8217;s look at the more complete discussion below.\u00a0<\/span><\/span><\/p>\n<h2><span id=\"Apa_Itu_Perusahaan_Dagang\" class=\"ez-toc-section\"><\/span><b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">What is a Trading Company?<\/span><\/span><\/b><\/h2>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Trading companies are companies whose main business is buying goods from suppliers and then reselling them to consumers. <\/span><span style=\"vertical-align: inherit;\">This product does not involve any process of changing the form of the item. <\/span><span style=\"vertical-align: inherit;\">For example, supermarkets and grocery stores to meet daily needs.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">In fact, trading company accounting procedures are no different from service companies. <\/span><span style=\"vertical-align: inherit;\">This profit and loss calculation is calculated by reducing costs in order to get the total income from sales during a certain period.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">These costs include the cost of goods sold and also costs during operations in that period. <\/span><span style=\"vertical-align: inherit;\">This overall income includes all business activities which are related to sales and administration activities throughout the company.<\/span><\/span><\/p>\n<h2><span id=\"Siklus_Akuntansi_Perusahaan_Dagang\" class=\"ez-toc-section\"><\/span><b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Trading Company Accounting Cycle<\/span><\/span><\/b><\/h2>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">The accounting cycle for a trading company is the process of creating the company&#8217;s financial reports over a certain period of time. <\/span><span style=\"vertical-align: inherit;\">Generally, calculations will start from collecting transaction data to preparing company financial reports to continue closing balances.<\/span><\/span><\/p>\n<pre><span style=\"color: #ff0000;\"><strong>Read Also :\u00a0<\/strong><\/span><span style=\"color: #ff0000;\"><strong><a style=\"color: #ff0000;\" title=\"Permalink to: What is the Basic Accounting Equation? Definition, Formulas and Examples\" href=\"https:\/\/mudabicara.com\/en\/what-is-the-basic-accounting-equation-definition-formulas-and-examples\/\" rel=\"bookmark\">What is the Basic Accounting Equation? Definition, Formulas and Examples<\/a><\/strong><\/span><\/pre>\n<h3><span id=\"1_Mencatat_Transaksi_di_Jurnal_Umum\" class=\"ez-toc-section\"><\/span><b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">1. Record transactions in the General Journal<\/span><\/span><\/b><\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Recording all transactions in a general journal is the first stage of a trading company&#8217;s accounting cycle. <\/span><span style=\"vertical-align: inherit;\">This is done to organize all business activities and events in the company system. <\/span><span style=\"vertical-align: inherit;\">The goal is that all data can be successfully entered into an equation and made easier to process.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">A discussion regarding the trading company accounting cycle, which is one of the absolute requirements for achieving corporate accounting learning, can also be found in the book by Sigit Hermawan, et al entitled\u00a0 <\/span><\/span><em><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Accounting for Service, Trading and Manufacturing Companies<\/span><\/span><\/em><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\"> .<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Business events that occur during one accounting period, the data entry will be recorded in a general journal. <\/span><span style=\"vertical-align: inherit;\">It is useful to convert it to accounting equation form. <\/span><span style=\"vertical-align: inherit;\">For example, when a company buys a new vehicle it causes the cash account to decrease.<\/span><\/span><\/p>\n<h3><span id=\"2_Mencatat_di_Buku_Besar_Pembantu\" class=\"ez-toc-section\"><\/span><b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">2. Make notes in the Subsidiary Ledger<\/span><\/span><\/b><\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">The data that has been completed is entered into the general journal, then this entry needs to be posted and transferred to the general ledger account. <\/span><span style=\"vertical-align: inherit;\">The aim is to record all changes during the relevant period.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">The general ledger account will categorize these changes, debits and credits to a particular account. <\/span><span style=\"vertical-align: inherit;\">The goal is for management to have information for budgeting purposes.<\/span><\/span><\/p>\n<h3><span id=\"3_Membuat_Neraca_Saldo_Belum_Disesuaikan\" class=\"ez-toc-section\"><\/span><b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">3. Create an Unadjusted Trial Balance<\/span><\/span><\/b><\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">The meaning of an unadjusted trial balance is the entire business account that appears on the financial statements before the adjusting journal is made. <\/span><span style=\"vertical-align: inherit;\">Therefore, it is called an unadjusted trial balance. <\/span><span style=\"vertical-align: inherit;\">This is the third step of the trading company accounting cycle.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">If all journal entries have been recorded in the general ledger, then you can create an unadjusted trial balance. <\/span><span style=\"vertical-align: inherit;\">Posting accounts to the unadjusted trial balance is easy and simple.\u00a0<\/span><\/span><\/p>\n<div id=\"grame-1129603737\" class=\"grame-vdo\"><\/div>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Generally, all accounts that have debit balances are written in the left column and accounts that consist of credit balances in the right column. <\/span><span style=\"vertical-align: inherit;\">Nowadays, almost all companies use computerized accounting systems which make work easier.\u00a0<\/span><\/span><\/p>\n<div id=\"grame-997435379\" class=\"grame-pickofthemonth\"><\/div>\n<h3><span id=\"4_Jurnal_Penyesuaian\" class=\"ez-toc-section\"><\/span><b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">4. Adjusting Journal<\/span><\/span><\/b><\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Meanwhile, an adjusting journal is a journal entry that is designed and prepared at the end of the period. <\/span><span style=\"vertical-align: inherit;\">The aim is to correct the account before making a financial report. <\/span><span style=\"vertical-align: inherit;\">This adjustment entry is the most frequently used step to apply the matching principle to the amount of a company&#8217;s income and expenses during a certain period.\u00a0<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">So, both the company&#8217;s income and expenses can be balanced. <\/span><span style=\"vertical-align: inherit;\">There are three types of expenses in a certain period, so they must be included in the adjusting journal entry. <\/span><span style=\"vertical-align: inherit;\">Starting from initial payments, accruals and non-cash expenses.\u00a0<\/span><\/span><\/p>\n<div id=\"grame-1424067149\" class=\"grame-amp-3\"><\/div>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">All three must adjust income and expenses, so that they are in accordance with previous usage.<\/span><\/span><\/p>\n<h4><span id=\"41_Akun_yang_Memerlukan_Penyesuaian\" class=\"ez-toc-section\"><\/span><b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">4.1 Accounts Requiring Adjustments<\/span><\/span><\/b><\/h4>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">There are some accounts that require adjustments only at the end of the period. <\/span><span style=\"vertical-align: inherit;\">So not everything needs to be adjusted. <\/span><span style=\"vertical-align: inherit;\">The first is the equipment account, requiring this stage due to usage. <\/span><span style=\"vertical-align: inherit;\">Next, the expense account is paid in advance.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Prepaid accounts must go through an adjustment stage because the time is due. <\/span><span style=\"vertical-align: inherit;\">Next there is a fixed assets account because it experiences depreciation. <\/span><span style=\"vertical-align: inherit;\">Meanwhile, the income account also needs to be adjusted because there is income that has not been taken into account.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Expense accounts also require adjustments because there are still expenses that have not been calculated or payments have not been processed. <\/span><span style=\"vertical-align: inherit;\">Furthermore, revenue accounts are received in advance, due to the passage of time or handed over to customers.<\/span><\/span><\/p>\n<h4><span id=\"42_Contoh_Penulisan_Jurnal_Penyesuaian\" class=\"ez-toc-section\"><\/span><b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">4.2 Example of Writing Adjusting Journals<\/span><\/span><\/b><\/h4>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">There are several examples of writing adjusting journals below that can be used as references when writing them. <\/span><span style=\"vertical-align: inherit;\">Writing adjusting journals depends on each account type, here is a complete review:<\/span><\/span><\/p>\n<p><b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">1. Supplies Account<\/span><\/span><br \/>\n<\/b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\"> The supplies account shows that the temporary balance is IDR 500,000. <\/span><span style=\"vertical-align: inherit;\">Meanwhile, data at the end of the period actually shows that there is still IDR 200,000 remaining. <\/span><span style=\"vertical-align: inherit;\">The analysis shows that the amount used up is calculated in the debit expense column, namely IDR 300,000. Next, it is recorded in the equipment expense account in the amount of IDR 300,000 in the debit column. <\/span><span style=\"vertical-align: inherit;\">Then it needs to be reduced by the amount of the account worth IDR 300,000 and so recorded in the credit column in the adjusting journal.<\/span><\/span><\/p>\n<p><b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">2. Insurance Account<\/span><\/span><br \/>\n<\/b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\"> The prepaid insurance account shows that the temporary balance is IDR 360,000. <\/span><span style=\"vertical-align: inherit;\">Meanwhile, data at the end of the period shows that the amount of insurance that has matured is IDR 120,000 in a period of 4 months. The analysis carried out shows that the insurance paid in advance will be written down as an asset. <\/span><span style=\"vertical-align: inherit;\">Meanwhile, for the adjusting journal, the total amount of expenses is IDR 120,0000 in the debit column. <\/span><span style=\"vertical-align: inherit;\">Next, the insurance account is IDR 120,000 in the credit section.<\/span><\/span><\/p>\n<p><b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">3. Equipment Account<\/span><\/span><br \/>\n<\/b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\"> The equipment account shows a balance of IDR 3,000,000. <\/span><span style=\"vertical-align: inherit;\">Meanwhile, at the end of this period, it experienced depreciation of 10%, so it needs to be calculated again so that it becomes real data after depreciation. The analysis carried out shows that the 10% depreciation needs to be multiplied by Rp. 3,000,000 to become Rp. 300,000. <\/span><span style=\"vertical-align: inherit;\">The writing will be included in the equipment depreciation expense in the debit column. <\/span><span style=\"vertical-align: inherit;\">Meanwhile IDR 300,000 is written in the accumulation account at the end of the column.<\/span><\/span><\/p>\n<p><b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">4. Revenue Account<\/span><\/span><br \/>\n<\/b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\"> The service revenue account shows that the amount is IDR 1,800,000. <\/span><span style=\"vertical-align: inherit;\">The final data for this period shows a total of IDR 200,000 of services to customers that have not been completed. <\/span><span style=\"vertical-align: inherit;\">Analysis shows that the service income account has not yet become income of IDR 200,000. This is because the work for customers has not been done. <\/span><span style=\"vertical-align: inherit;\">So there needs to be a reduction in the service income account of IDR 200,000 and then recorded in the debit column. <\/span><span style=\"vertical-align: inherit;\">Next, record in the account column the unearned income in the amount of IDR 200,000 in the credit section.<\/span><\/span><\/p>\n<h3><span id=\"5_Neraca_Saldo_Telah_Disesuaikan\" class=\"ez-toc-section\"><\/span><b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">5. Trial Balance Has Been Adjusted<\/span><\/span><\/b><\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Previously, the trial balance itself was a list of closing account balances from the General Ledger on a certain date and was the first step before entering into the preparation of financial reports. <\/span><span style=\"vertical-align: inherit;\">Meanwhile, NSSD or adjusted trial balance has several differences.<\/span><\/span><\/p>\n<ol start=\"2\">\n<li><b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">What is meant by an Adjusted Trial Balance<\/span><\/span><br \/>\n<\/b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\"> ? An Adjusted Trial Balance is a list of all accounts and balances in the General Ledger after adjusting entries have been made in the previous accounting period or have been posted. <\/span><span style=\"vertical-align: inherit;\">Generally, its preparation also has several purposes, as is the case in the review in the next point. The difference between an adjusted trial balance and a trial balance in general is in the amount of the balance. <\/span><span style=\"vertical-align: inherit;\">Especially when accounting adjustments are completed.<\/span><\/span><\/li>\n<li><b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">What is the Purpose of an Adjusted Trial Balance?<\/span><\/span><br \/>\n<\/b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\"> Preparing a trial balance has several important purposes. <\/span><span style=\"vertical-align: inherit;\">First, it is the first step in preparing financial reports. <\/span><span style=\"vertical-align: inherit;\">This tool is an internal document or working paper which will later be used by accountants when preparing various things, especially reporting. An adjusted trial balance ensures that all debit entries and credit entries have similar or balanced values. <\/span><span style=\"vertical-align: inherit;\">This step was taken to comply with the\u00a0 <\/span><\/span><i><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">double entry<\/span><\/span><\/i><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\"> accounting concept . <\/span><span style=\"vertical-align: inherit;\">That is, any differences or imbalances must be explored before the financial statements are completed.<\/span><\/span><\/li>\n<\/ol>\n<pre><span style=\"color: #ff0000;\"><strong>Read Also :\u00a0<\/strong><\/span><span style=\"color: #ff0000;\"><strong><a style=\"color: #ff0000;\" title=\"Permalink to: What is Cost Accounting? Definition According to Experts, Functions and Types\" href=\"https:\/\/mudabicara.com\/en\/what-is-cost-accounting-definition-according-to-experts-functions-and-types\/\" rel=\"bookmark\">What is Cost Accounting? Definition According to Experts, Functions and Types<\/a><\/strong><\/span><\/pre>\n<h3><span id=\"6_Membuat_Laporan_Keuangan\" class=\"ez-toc-section\"><\/span><b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">6. Make Financial Reports<\/span><\/span><\/b><\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Financial reports are important, especially for players in the large business sector, especially companies. <\/span><span style=\"vertical-align: inherit;\">However, the preparation of financial reports also needs to be prepared as much as possible by small-scale business entities. <\/span><span style=\"vertical-align: inherit;\">The reason is, this device must be created in every accounting period.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Financial reports can be thought of as the heart of a company. <\/span><span style=\"vertical-align: inherit;\">So every entrepreneur needs it in the hope of being able to find out their true financial condition. <\/span><span style=\"vertical-align: inherit;\">Another goal is to assess performance in the current year so that it can help make the best possible decisions.\u00a0<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Several accounting applications can now be used to prepare financial reports more easily and practically. <\/span><span style=\"vertical-align: inherit;\">More clearly, financial reports are considered as a summary of the recording of all financial transactions during a financial year or certain period.<\/span><\/span><\/p>\n<h4><span id=\"61_Cara_Membuat_Laporan_Keuangan_dengan_Mudah\" class=\"ez-toc-section\"><\/span><b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">6.1 How to Make Financial Reports Easily<\/span><\/span><\/b><\/h4>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Preparing this general financial report starts by preparing several pieces of information at once. <\/span><span style=\"vertical-align: inherit;\">Starting from the balance sheet, profit and loss report, cash flow report, retained earnings report. <\/span><span style=\"vertical-align: inherit;\">All of these are important components in the accounting cycle, because they serve as the purpose of financial reports.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">In other words, the existence of financial reports and the accounting cycle process will focus on providing useful and useful information. <\/span><span style=\"vertical-align: inherit;\">Especially for external users in the form of reports. <\/span><span style=\"vertical-align: inherit;\">This statement is the final product of the accounting system in any company.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Generally, how to prepare financial reports must pay attention to several important things and should not be done haphazardly. <\/span><span style=\"vertical-align: inherit;\">Especially if all the data has been arranged neatly and accurately.<\/span><\/span><\/p>\n<h4><span id=\"62_Membuat_Lembar_Kerja_Akuntansi\" class=\"ez-toc-section\"><\/span><b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">6.2 Create an Accounting Worksheet<\/span><\/span><\/b><\/h4>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Accounting worksheets are a tool that will later be used to make it easier for accountants to complete the accounting cycle and prepare year-end reports. <\/span><span style=\"vertical-align: inherit;\">Some examples are unadjusted trial balances, adjusting journals, financial reports and others.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">This accounting worksheet is a sheet that will track each step of the cycle. <\/span><span style=\"vertical-align: inherit;\">Generally this document has five columns, starting from the unadjusted trial balance account and ending with the financial statements section.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">In general, an accounting worksheet shows each step in the cycle side by side. <\/span><span style=\"vertical-align: inherit;\">Each stage will include debit and credit data. <\/span><span style=\"vertical-align: inherit;\">The title consists of the company name, report title and time period of the document.<\/span><\/span><\/p>\n<h3><span id=\"7_Membuat_Jurnal_Penutup\" class=\"ez-toc-section\"><\/span><b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">7. Make a Closing Journal<\/span><\/span><\/b><\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Closing journals are entries prepared at the end of an accounting period to delete all temporary accounts and transfer the balance to permanent accounts. <\/span><span style=\"vertical-align: inherit;\">It&#8217;s like, a temporary account needs to be closed and reset at the end of the year or what can be called closing the books.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">This temporary account is an income statement account which functions to track accounting activities during a certain period. <\/span><span style=\"vertical-align: inherit;\">For example, an income account will record the amount of income earned in one cycle so it is not based on the period of use by the company.<\/span><\/span><\/p>\n<div id=\"grame-1409927553\" class=\"grame-adss2\"><\/div>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Meanwhile, a permanent account is a balance sheet account that will track activities that can last longer than the accounting period. <\/span><span style=\"vertical-align: inherit;\">For example, a vehicle account is recorded at the balance. <\/span><span style=\"vertical-align: inherit;\">This is done because it provides benefits to the company even in the coming year.<\/span><\/span><\/p>\n<h4><span id=\"71_Membuat_Ringkasan_Penghasilan\" class=\"ez-toc-section\"><\/span><b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">7.1 Creating an Income Summary<\/span><\/span><\/b><\/h4>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">A summary account is a temporary account that will later be used to store the balance of the income statement account as well as income and expense accounts during the closing entry stage. <\/span><span style=\"vertical-align: inherit;\">This step is carried out in one accounting cycle.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">In other words, the income summary account is only considered a substitute for the account balance. <\/span><span style=\"vertical-align: inherit;\">This is also done at the end of the accounting period, especially while the closing entry stage is being implemented.<\/span><\/span><\/p>\n<h3><span id=\"8_Neraca_Saldo_Setelah_Tutup_Buku\" class=\"ez-toc-section\"><\/span><b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">8. Trial Balance After Book Closing<\/span><\/span><\/b><\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">The trial balance after closing the book contains a list of all accounts and also the company&#8217;s balance after the closing entry stage and then posted in the ledger. <\/span><span style=\"vertical-align: inherit;\">In simple terms, this data will record all permanent accounts that still have a balance.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">This existing balance is proven to still exist even after the closing entry. <\/span><span style=\"vertical-align: inherit;\">This list of accounts is identical to the accounts presented in the balance sheet. <\/span><span style=\"vertical-align: inherit;\">This certainly makes sense, because all report accounts, especially profit and loss, have been closed and no longer have any remaining value.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">The purpose of preparing a post-closing trial balance is to verify that all temporary accounts have been closed correctly. <\/span><span style=\"vertical-align: inherit;\">Meanwhile, the total credits and debits in the accounting system already have a balanced value after making the closing entry.\u00a0<\/span><\/span><\/p>\n<pre><span style=\"color: #ff0000;\"><strong>Read Also :\u00a0<\/strong><\/span><span style=\"color: #ff0000;\"><strong><a style=\"color: #ff0000;\" title=\"Permalink to: What is an Accounting Information System? Definition, Goals and Functions\" href=\"https:\/\/mudabicara.com\/en\/what-is-an-accounting-information-system-definition-goals-and-functions\/\" rel=\"bookmark\">What is an Accounting Information System? Definition, Goals and Functions<\/a><\/strong><\/span><\/pre>\n<h3><span id=\"9_Membuat_Jurnal_Pembalik\" class=\"ez-toc-section\"><\/span><b><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">9. Make a Reversal Journal<\/span><\/span><\/b><\/h3>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">Reversing journals are journal entries prepared at the beginning of an accounting period to cancel and reverse adjusting journal entries. <\/span><span style=\"vertical-align: inherit;\">Previously it had been done at the end of the annual cycle so this step was the final stage.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">This reversing entry is carried out at the beginning of the previous year and the payment at the end will immediately be completed or used during the new year. <\/span><span style=\"vertical-align: inherit;\">Then it is no longer recorded as an asset or liability.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">A turning journal is also optional so you only need to organize it when you really need it. <\/span><span style=\"vertical-align: inherit;\">The need for financial reports certainly does not always require reversal of journal entries so they must be adjusted.<\/span><\/span><\/p>\n<p><span style=\"vertical-align: inherit;\"><span style=\"vertical-align: inherit;\">The entire trading company accounting cycle above is a process that can be applied to this business entity. <\/span><span style=\"vertical-align: inherit;\">Each stage certainly requires repetition in order to produce financial reports based on various considerations and decisions in running the business in the future.<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Setting up a trading company is often an option for business people <a class=\"read-more\" href=\"https:\/\/mudabicara.com\/en\/an-example-of-trading-company-accounting-cycle-material\/\" title=\"An Example of Trading Company Accounting Cycle Material\" itemprop=\"url\"><\/a><\/p>\n","protected":false},"author":2,"featured_media":1727,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[454,449,343,144,121,128,28,38],"class_list":{"0":"post-1724","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economic","8":"tag-academic","9":"tag-accountancy","10":"tag-accountant","11":"tag-accounting","12":"tag-business","13":"tag-economic","14":"tag-education","15":"tag-university"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - 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