Accountancy Part COverview of Computerised Accounting System

Arrange the following phases of the accounting cycle in CAS in the co…

Arrange the following phases of the accounting cycle in CAS in the correct sequence.

(A) The transactions are recorded in Journal
(B) Business transactions are identified
(C) Trial Balance is prepared
(D) Journal entries are posted to the Ledger Accounts
(E) Balance Sheet and Profit and Loss Account are prepared

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → (B), (A), (D), (C), (E)

The accounting cycle runs from identifying a transaction to preparing the financial statements:

(B) Business transactions are identified – first, the transaction is identified and analysed.

(A) The transactions are recorded in Journal – then it is recorded in the journal.

(D) Journal entries are posted to the Ledger Accounts – journal entries are posted to ledger accounts.

(C) Trial Balance is prepared – balances of the ledger accounts form the trial balance.

(E) Balance Sheet and Profit and Loss Account are prepared – the financial statements come last.

NCERT (2026-27 edition):
Components of CAS – “… The accounting cycle means the processes involved in identifying, measuring and communicating the information.”

NCERT (2026-27 edition):
Components of CAS – “… • Business transactions are analysed. • The transactions are recorded in the journal. • Journal entries are posted to the ledger accounts. • A trial balance is prepared from balances of accounts. • Accounts are reviewed and the necessary adjustments made. • Adjustments are posted in the ledger to prepare adjusted trial balance. • Adjusted trial balance is used to prepare the balance sheet and profit and loss account. • Financial Statements are prepared from the finally adjusted ledger and balancing the accounts.”