Question

So given with a junior accountant has done so far what is the next step for the junior accountant to

complete in the account cycle and why

Answer 1

Accounting cycle consists of serveral stages that an organisation go through during each financial year in accounting . This cycle involves given steps,

• source documents
• journals
• ledger (T-account)
• trail balance
• financial statement
• closing entries

Role of junior accountant in completion of accounting cycle

1. Junior accountant helps the senior accountant and accounts manager through clerical and accounting activities.
2. He is involved in assisting accounts department in summarisation of accounts and preparation of financial statements, budget etc.
3. Jr.accountant regularly  prepares financial activities reports for seniors.
4. He helps the organisation's auditors in conducting internal and external audits. and also perfoms many other tasks.

In the given situation the next step to be taken by the junior accountant would be to summarise the similar transactions to make them understandable and to arrange them under different categories to make their interpretation easier.

Junior accountant should prepare a summarised report of all these transactions i.e trial balance

Lastly financial statement will be prepared by jounior accountant which will be looked over by the stakeholders of the organisation. Such as by investors  to ascertain whether there investment is safe. by banks to provide loans, by management, by shareholders and by the  auditors of the organisation.