Final accounts

In this particular class, students will learn about-

1)Trading accounts

2)Profit and loss account and,

3)Balance sheet 

certain adjustment required at the class 12th level 

Promising the best experience easily understandable

Final Accounts are prepared at the end of an accounting period to determine the profit or loss of a business and to show its financial position. They consist of three main statements: Trading Account, Profit & Loss Account, and Balance Sheet.

The Trading Account calculates gross profit or gross loss by comparing sales with the cost of goods sold. The Profit & Loss Account then determines net profit or net loss by adjusting indirect incomes and expenses such as rent, salary, depreciation, and interest.

The Balance Sheet presents the financial position of the business on a specific date by listing assets, liabilities, and capital. It is prepared on the basis of the accounting equation: Assets = Capital + Liabilities.

Final Accounts help owners, investors, banks, and tax authorities to analyze business performance, financial stability, and decision-making. They are prepared following accounting principles and are essential for taxation, audit, and compliance purposes.

Comeon guys let's make accounts easy.