We have already discussed the development and importance of accounting as a source of disseminating the financial information and the basic accounting concepts that help in the recording of business transactions. The accounting involves a process of identifying and analysing the business transactions, recording them, classifying and summarising their effects and finally communicating it to the learners of accounting information.
βIn this chapter, we will discuss the Steps involved in the accounting process:
The first step involves identifying the transactions to be recorded and preparing the source documents.
Which are in turn recorded in the basic book of original entry called journal and are then posted to individual accounts in the principal book called ledger.
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