Final Accounts
Final accounts are the accounts or statements prepared at the end of accounting period. Different business entities have different final accounts as manufacturer final account consists of manufacturing account, profit & loss account, profit & loss appropriation account etc. Final accounts of advertising company consist of manufacturing costs of an advertisement.
Learning Objectives: Define and explain trading account. (What is trading Account ?) What are the items of a trading account. Prepare the format of trading account. What are advantages of trading accounting? Definition and Explanation: A trading account is an account which contains, ”
Profit and Loss Account in Statement Form/Income Statement: Trading and profit and loss account/income statement may be prepared either in account form (T form) or in report form (statement form). Trading and profit and loss account in both the forms give the same information.
Distinction/Difference Between Trial Balance and Balance Sheet: Learning Objectives: What is the difference between trial balance and balance sheet? The following are the points of distinction/difference between trial balance and balance sheet: Trial Balance Balance Sheet ► It is a list of balance extracted
Difference Between Trading Account and Profit and Loss Account: Learning Objectives: What is the difference between account and profit and loss account? The main difference between trading account and profit and loss account is that the gross profit or loss which is derived from
Final Accounts: Learning Objectives: What is trading and profit and loss account? What is the the difference between trial balance and balance sheet? Prepare trading and profit and loss account and balance sheet. Explain the preparations of final account Having proved the arithmetical accuracy
