Q.What are the steps involved in the process of Accounting ?

The accounting process follows five sequential steps: recording → classifying → summarising → analysing and interpreting → communicating.

In the Tamil Nadu HSC Class-11 Accountancy syllabus, accounting is described as a process with these steps:

1. Identifying and recording — identifying financial transactions and recording them in the books of original entry (journal and subsidiary books).
2. Classifying — grouping transactions of the same nature by posting them to the appropriate accounts in the ledger.
3. Summarising — presenting the classified data in a useful form by preparing the trial balance and the final accounts (Trading, Profit & Loss account and Balance Sheet). …