Similar to the sole proprietor, the partnership firm also prepares its final accounts from the trial balance.
In the final accounts of a partnership firm, trading account, profit and loss account, profit and loss appropriation account, partners' capital accounts/current accounts and balance sheets are prepared.
The objectives of Final Accounts of Partnership are:
1. To ascertain gross profit or loss
2. To ascertain net profit or loss
3. To ascertain divisible profit or loss
4. To know the financial status of the firm
5. For taxation purpose