Class 11 Accountancy Notes · GSEB

Steps to Prepare Accounts

Steps to Prepare Accounts — Follow the 6-step chronological process from initial voucher to final annual accounts. GSEB Class 11 Commerce Accountancy notes.

Last updated: 1 Aug 2026

Notes

The 6 Steps of Accounting Process

Account is a science developed by human beings. Since it is a science, it has rules. Operations are made on the basis of rules where accounts are prepared as per different, developed steps. These steps are followed in chronological order.

Step 1: Voucher

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First step of business transaction. A valid written document of the transaction made. Every transaction begins with a voucher — it is the foundational evidence.

Real-life example:

When you buy goods worth ₹ 5,000 cash, the cash memo or bill is your voucher. When you sell on credit, the invoice you issue is the voucher.

Key Takeaways

The accounting process follows 6 chronological steps: Voucher → Identification → Recording → Posting → Trial Balance → Annual Accounts.
Step 1 (Voucher) is the foundation — every transaction begins with a valid written document.
Step 3 (Journals) is the book of original entry — transactions recorded in chronological order.
Step 4 (Ledger) classifies transactions by account — all transactions of one item/person at one place.
Step 5 (Trial Balance) checks mathematical accuracy — debits must equal credits.
Step 6 (Annual Accounts) produces the final output: Trading Account, P&L Account, and Balance Sheet.