User Guide

Accounting Manual 14–1
Amc14.doc, printed on 12/05/97, at 12:00 PM. Last saved on 06/05/97 3:57 PM.
Confidential ACCPAC International
Chapter 14
Summary of Financial Statement
Preparation
Chapter 13 concludes the instructions on how to prepare
financial statements. The rest of this manual deals with specific
situations for companies of different legal forms than a
proprietorship, or in different industries. The process of
preparing financial statements is summarized below, going
from the beginning of an accounting period to the end of an
accounting period.
Old Balance
Ledger Accounts
Transactions
Trial Balance
Adjusting Entries
New Financial
Statements
Ensure it accurately reflects the financial position of the
company and that:
left side = right side
Account balances from the balance sheet are entered in
the new journal (the opening entry) and posted to the
ledger, and for the opening entry:
left side = right side
debits = credits
All transactions are entered in the journal and
immediately posted to the ledger and, for each
transaction:
left side = right side
debits = credits
Ledger accounts are reviewed at the end of an
accounting period to form a basis for adjusting entries
and to ensure that:
debits = credits
Financial statements are adjusted to more accurately
reflect true income for the accounting period, and for all
adjusting entries:
debits = credits
The financial statements for the accounting period now
represent fairly the financial position of the company and:
debits = credits