Chapter 5: Final Accounts

Final accounts are prepared at the end of the accounting year to know the result and financial position of the business.

Details

Business is an economic activity, and its main purpose is profit. Therefore, a number of economic transactions take place during the year in the business entity. The financial transaction of each business is first recorded in journal or subsidiary books. On the basis of these books posting is done in ledger and balance of each account is found. On the basis of closing balance of each account, trial balance is prepared. If the total of credit balances and debit balances of trial balance are equal, then arithmetically accounts are correct.
After the preparation of trial balance, the next stage is final accounts. Final accounts are prepared at the end of the accounting year to know the result and financial position of the business.

In this course:
+ Introduction
+ Financial Statements
+ Trading Account
+ Profit and Loss Account
+ Difference between Trading Account and Profit and Loss Account
+ Types of Profit
+ Balance Sheet
+ Comparison of Trial Balance and Balance sheet
+ Adjustments
+ Illustration for preparation of Final Accounts


Curriculum

  • Final accounts - Basic Concepts
  • Extra Trading Acct Sum Q7
  • Extra Material
    250 KB
  • Extra Q6 P nd L Account Basic
  • Extra P n l Q9 Pg 9 Fin Acct
  • Extra Q10 PG 11 Fin acc full sum wo adj
  • Final Accounts - Basic Adjustments
  • Final Accounts Sum with Bad Debt Reserve Adjustment
  • Txt Bk Q6 Pg 191 fin acc
  • Txt bk q7 pg 192 fin acc
  • Txt Q8 pg 193 final acc
  • Txt Q10 pg 196 final acc
  • txt Q12 pg 198 fina accts
  • Txt Q13 pg 199 final accts
  • Txt Q14 pg 200 final accts
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