Which of the following correctly represents the sequence of steps in the accounting cycle, as followed in both manual and computerised accounting systems?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Analyzing transactions, Journalizing, Posting to ledger, Preparing trial balance, Adjustments, Adjusted trial balance, Financial statements
The accounting cycle is the same whether the books are kept by hand or by computer: a transaction is first analysed, then journalised, posted to the ledger and summarised in a trial balance; adjustments follow, an adjusted trial balance is drawn up, and the financial statements come last.
NCERT (2026-27 edition):
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