2.2 Accounting cycle

Source documents are used to record transactions in the journal and posted to the ledger daily. Accounting information system - Source documents - Ledger - Journal

The ending balances of ledger accounts are listed in a trial balance and adjusted at least once in a financial year. Accounting information system - Trial balance

The adjusted trial balance is used to prepare the financial statements at least once in a financial year Accounting information system - Financial statement ~ performance ~position

After the financial statements are finalised, income, expense, income summary, drawings and dividends accounts are close at the end of the financial year.