ABSTRACT
This chapter discusses special issues of the accounting cycle. It provides what accounting students should do if certain financial transactions are incorrectly processed and / or some financial transactions have been forgotten. The chapter shows that accounting students will learn how to record Value Added Tax. It explains the concept that the final consumer pays all and so how value added tax is settled in stages as goods pass their way down the supply chain. The balance carried down is a balance at the end of the bookkeeping cycle which will be entered on the balance sheet representing the closing balance. It’s also brought down at the beginning of the following accounting period, representing the opening balance for the next accounting period. At the end of an accounting period, the balances of temporary accounts are transferred to the income statement.
