An accounting practice set is a real world simulation of a single month in the accounting cycle of a small business. In this context, the word "practice" does not mean "a casual attempt" but rather an opportunity to demonstrate your accounting skills in your own simulated "accounting practice". This particular practice set will give you practical experience in a manual accounting system by taking you through all of the steps involved in the accounting cycle of a small electronics store called Intermaweb Computer.

This practice set adopts a manual approach. This means it requires you to complete the accounting cycle entirely by hand, albeit using the Perdisco website instead of paper. None of the steps will be automated. For example, journal entries will not be automatically posted to accounts, running balances in the accounts will not be automatically maintained, and totals will not be automatically calculated. This is by design. This practice set website is not an accounting software package and is not meant to perform any accounting software functions. Instead this website is a learning tool designed to give you direct experience in all elements of a manual accounting cycle - it does not hide any of those elements behind automated computing processes, no matter how mundane they may seem.

By the conclusion of this practice set you will have:

• applied the periodic inventory system

• recorded transactions

• journalised and posted entries, and

• prepared a number of financial reports,

To begin, you will be provided with information about the company and you will use this information to:

• record the given transactions in the company's journals.

• manually post journal entries to the appropriate ledgers

• perform a bank reconciliation

• prepare an accounting worksheet 

• journalise adjusting entries 

• complete schedules of accounts receivable and payable

• record closing entries

• generate a post-closing trial balance, and

• construct the financial statements