FINAL ACCOUNT
Lecture # 01
Introduction of Final Account
Final Accounts are the accounts, which are prepared at the end of a financial year
(fiscal year or sometimes budget year). The final accounts are primarily prepared for
ascertaining the operational result and the financial position of the business/organization to its
owners, management, or other interested parties. These are prepared with the help of Trial
Balance.
Final Accounts/Financial statements are primarily recorded in a journal; then
transferred to a ledger; and thereafter, the final account is prepared, d. The preparation of a
final accounting is the last stage of the accounting cycle.
Usually, a final account includes the following components -
1. Trading Account
2. Profit and Loss Account
3. Balance Sheet
These accounts or statements are collectively known as Final Accounts or Financial
Statements.
Accounting Elements
1. Assets
2. Liabilities
3. Expenses
4. Income
5. Capital
Þ Elements of Trading and Profit and Loss Account
• Incomes
• Expenses
1
Lecture # 01
Introduction of Final Account
Final Accounts are the accounts, which are prepared at the end of a financial year
(fiscal year or sometimes budget year). The final accounts are primarily prepared for
ascertaining the operational result and the financial position of the business/organization to its
owners, management, or other interested parties. These are prepared with the help of Trial
Balance.
Final Accounts/Financial statements are primarily recorded in a journal; then
transferred to a ledger; and thereafter, the final account is prepared, d. The preparation of a
final accounting is the last stage of the accounting cycle.
Usually, a final account includes the following components -
1. Trading Account
2. Profit and Loss Account
3. Balance Sheet
These accounts or statements are collectively known as Final Accounts or Financial
Statements.
Accounting Elements
1. Assets
2. Liabilities
3. Expenses
4. Income
5. Capital
Þ Elements of Trading and Profit and Loss Account
• Incomes
• Expenses
1
