THE CYCLE OF ACCOUNTING IN

TRADING COMPANIES

BY : DEVI PURPITA SARI

XII-ACCOUNTING 2

The CycleOf

Accounting in Trading Companies

Definition Of Trading Company

The kinds of Trading Company

The characteristics of which are owned of Trading Company

The Steps Cycle Of Accounting in Trading Company

1. •The Transaction

2 •The recording

3 •The summary

4 •The Reporting

Definition Of Trading Company

The kinds of Trading Companies

The main characteristics of trading companies

The characteristics of trading companies can be viewed from the activity in companies including the viewed of the activity of buying and selling goods in the same form.

1. Make purchasing of merchandise, either by cash or credit2. The salling of merchandise, either by cash or credit3. Doing effort debt payments that occurs due to a variety of transactions in the company's activities.4. Receive payment / pay of trade receivables which are the result of various transactions in the company's activities5. Perform during the storage of merchandise sold and not delivered to the buyer.

The Steps Cycle Of Accounting in Trading Company

1.• The

Transaction

2 • The recording

3 • The summary

4• The stage

of Financial statement

The Analyzes of Transaction

The Advidance of transaction

Make a journal

Posting to General Ledger

Make the Working Paper in Work Sheet

The Income Statement

The Statements Of Equity Changes

The Statement Of Cash Flow

The transactionts

1. Analyzed of Transactionts every financial transaction that occurs

in the company must be accompanied by proof of the transaction.

The Advidance of transaction

a. Invoices

b. A Receipt

c. Memorandum of Nota debit and credit

d. Evidence of delivery of goods

e. Document / evidence of Cash Out

The Recording

Example Transaction :The following transactions were carried out by PD " Eternal Blue "

during the month of April 2008 .1 . Merchandise sold to CV " Aini " for Rp . 5,000,000.00 in cash .1 . Purchased merchandise from the store " Anis " for Rp .

3,000,000.002 Paid rent the building for 10 months Rp. 1,000,000.003 . Purchased merchandise from CV Pearls for Rp . 10,000,000.00

invoice no 010 with terms 2/10 , n/304 . Merchandise is returned in part because of damage to the CV

Pearls Rp . 2,000,000.005 . Duty paid goods to PT " Rama " is Rp . 600.000,006 . Paid by check no. 511 to CV Pearls for settlement no invoice . 010 7 . Sold merchandise to the store "Lush " with the invoice no . 015 for

Rp 3.500.000,00 with terms 2/15 , net 30 .17 . Debit note received from the store "Lush " for the return of goods

worth 500,000 , 00 .

Every transactiont to record at the journal

Date Discription Ref Debet (Rp) Credit (Rp)

2006,April

1Cash   5.000.000  sales 5.000.000(Cash sales to CV "Aini)  

  1Marchandise inventory   3.000.000  

cash 3.000.000(KPD cash purchase store "Anis")

 

  2Prepiad Rent   2.000.000  cash 2.000.000

(paid rent for 10 months)

 

  3Cost of Good sold   10.000.000

  Account Payable

10.000.000

(credit purchases of CV "Pearl")

 

  4Account Payable   2.000.000    2.000.000 Purchase return  

( returns of merchandise purchased since broken)

 

  5Freight Paid   600.000  Cash 600.000

(payment of duty to the PT "Rama")

 

  6Account Payable   8.000.000  Cash 7.840.000

purchase discount 160.000(Payment of credit purchase with discount)

 

  7Account Receivable   3.500.000  sales 3.500.000

(Sales of credit to shop Lush, invoice no.015, terms 2/15, net 30)

 

  17Sales Retuns   500.000  Account Receivable 500.000

(Returns of sales)  

Posting to general ledger

After all transactoints are recorded into journal, perform desplacement (post) journal data into General Ledger on each post of number account.

In process posting is accuracy in the transfer amount, and the recording of debit side or the credit side of an account.

The summary

1. Make a adjusting entries

Adjusting entries are being made in journal recording the changes in the balance of that account the balance reflect actual number of

The function of the adjusting entry:

1. Setting the balance ledger account record at the end of that period appropriate with the balance of the real (actual)

2. Calculate revenues and expenses during the period.

2. Make the Working Paper in the Form of Work Sheet

After making adjusting entries at the end of the period, then continued making work sheet. Which then enter the amount of the adjustment results.

The stage of Financial Statement

Financial Statement

Report financial position usually reflect the various elements of the income statement and the changes in the various elements of the balance sheet.

Draw up the Profit / Loss

reported about the activity of the company income and operational by taking into account with during a period that can then be determined profit or loss

Draw up the report on the equity changes ( owner' s equity statement )

financial report shows the equity changes for a period. The report consists of the initial balance of equity capital on the scales balance added after adjusted in net profit for a period of reduced by adoption of prive.

The balance sheet ( ballance sheet ) namely report sistimatically describing

financial position of a firm covering assets, liabilities, and Equity.

1.Assets

2. Liabilities

3. Equity

Statement of changes in financial position that can be presented in the form of Statement Of Cash Flow

Indicating sources of and uses of cash during the period that the cash balance on the balance sheet looks like, cash flow statement needs data / information from the previous period and the balance of the period and the profit or loss in the period in question. Cash flow statement shows the company's operating, investing and financing cash flows.

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