Steps 1

2 3

5 6

b c d

e f D

Accounts Department Accounts Finalization steps : Mercantily system First Complete sales/income revenue bills for the month/qtr Then, Expenditures/invoices accounting then, petti cash expenses Do Accounting of Purchase Import or local purchases Receipts : Do Accounting of Bank or cash receipts as per bank deposite slips accounting of debit /credit notes Inter/Group company transactions and reconciliations thereof. Payments Enter all Bank payments as per bank counterfoils Credit or debit card payments And prepare Bank reconciliations Do accounting of Bank charges commissions, Interest on Bank OD etc. Do accounting of Bank OD or Loans taken or Given : EMI and Interest paid or received EMI of hirepurchased vehicles or rented machineries etc installment and interest. Depriciations of fixed assets Bad debt provisions Send ledgers of Creditors and Debtors for Confirmations Provisions Provisions are required for fixed or semi variable expenditures for which invoices are not received. Prepare the list of Fixed and Semi fixed expenditures and do provision if invoices are not required. Expenses : Do provision of those expenses for which invoices are not received at the end of day which are fixed in nature Such as Electricity bills, fuel bills, telephone internet bills etc/Rent. Bill of exchanges accounting and interest recievable or payble accounting Amortisations of Advance payment/pre paid expenditure such as insurance/Guest house rent / adv to suppliers etc. Goodwill/petents Taxation, whenever required. Provision for payment of TDS/Service Tax/Wealth Tax/FBT etc/Advanced income tax Provision of contigent liabilities. As per Accounting standards Get the Stock value of inventories closing stock value Salary processing That Means all Transacions of Income and Expenditures should be accounted whether paid or unpaid.

After above steps take a look of Balance sheet Liability side Capital : Ledger scrutiny and ensure all accounting transactions are done Reserves and Surplus : Same Loans : Same Current Liabilities : same Provisions : same Assets side Fixed assets : Prepare Fixed assets register and depriciation accounting

Investment : Interest accounting Current assets Prepaid Expeses : Book Expenses of current period Closing stock : Assess the closing stock value : cost or market value which ever is less Miscelleneous expenses : Amortise for the current period if any. Prepare the Trading A/c PL A/c and Balance Sheet

suppliers etc.