Skip to Main Content
Principles of Islamic Accounting
book

Principles of Islamic Accounting

by Nabil Baydoun, Maliah Sulaiman, Roger J. Willett, Shahul Ibrahim
September 2018
Beginner content levelBeginner
600 pages
7h 27m
English
Wiley
Content preview from Principles of Islamic Accounting

CHAPTER 4Islamic Financial Statements

THE ACCOUNTING CYCLE

The value chain from recording transactions in the journal, posting these records to the ledger, preparing the trial balance, and finally producing the financial statements is referred to as the accounting cycle. Once Dar Al Fatina was established in the City of Al Ain in the UAE, the accounting cycle starts with opening the books and recording the transactions taking place at the company, including the first transaction of the initial investment of AED1,000 as the capital of the owner Fatina Jabir. The accounting cycle ends with the preparation of the end-of-period financial statements. The accounting cycles for the following periods start with the balances of the accounts of the preceding period; new transactions are recorded, posted, a trial balance is prepared; and end-of-period financial statements are also prepared. This is done during every accounting period until the business is liquidated or sold.

At the end of the accounting period, the fair values of some assets and liabilities are estimated based on market conditions existing at the balance sheet date. In this chapter we show how ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Islamic Finance For Dummies

Islamic Finance For Dummies

Dr. Faleel Jamaldeen
Islamic Capital Markets and Products

Islamic Capital Markets and Products

Simon Archer, Rifaat Ahmed Abdel Karim

Publisher Resources

ISBN: 9781119023296Purchase book