explain the adjustment of final account
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Each and every business organization wants to know the amount of profit or loss made by it during the particular period of time. In order to determine the amount of profit or loss made by the business, it prepares trading and profit and loss accounts. Trading and profit and loss accounts help to know the amount of net profit or the net loss of the business during the particular period of time.
The final account is the final process of accounting. It is an accounting process, which is prepared at the end of the given period of time. It is prepared to know the amount of profit or loss and financial position of the business. The amount of profit or loss of the business during the year is determined by preparing trading and profit and loss accounts. The financial position of the business on a particular date is determined by preparing the balance sheet. Thus, final accounts are the combination of trading account, profit and loss account and balance sheet.
The final account is the final process of accounting. It is an accounting process, which is prepared at the end of the given period of time. It is prepared to know the amount of profit or loss and financial position of the business. The amount of profit or loss of the business during the year is determined by preparing trading and profit and loss accounts. The financial position of the business on a particular date is determined by preparing the balance sheet. Thus, final accounts are the combination of trading account, profit and loss account and balance sheet.
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