Final Account

• Final accounts refers to the position of a company at the end of its accounting period. A
company can finalize its accounts based on its own timelines, but it is usually a year. At
the end of the accounting period, the company prepares final accounts and looks at its
position and knows whether it has made a profit or a loss.

• For most busineess, the final acounts, which are prodused at the end of each
financial year, comprise,
Trading A/C
Profit and loss A/C
Balance Sheet
 Preparation of Final a/c
• Income statements (trading and profit and loss accounts

• calculate the gross and net profits or losses based on accounting principles, for
a specified period
• recognise that net profit (or loss) is the increase (or decrease) in the net assets
during that period.
• Balance sheets
• recognise that they are statements of balances of assets and liabilities on a
specified date
• recognise and define non- current assets ( fixed assets), intangible assets,
current assets, current liabilities ( creditors: amounts due within 12 months),
long-term liabilities (creditors: amounts due after more than one year),
working capital, capital employed and capital owned
• comment on the inter-relationship of balance sheet items.