Question

Final accounts are prepared on the basis of ________ and adjustment. (Fill in the blank by choosing correct option)
a) trial balance
b) capital a/c
c) trading A/c
d) profit and loss A/c

Answer 1

Answer:

    Final accounts are prepared on the basis of Trial Balance.

Explanation:

                          The Basis of Final Accounts

1. Final accounts includes the Income statement and Balance sheet of a business.
2. For the basis of preparation of Final Accounts Trial balance is used.
3. Trial Balance includes all the ledger accounts of Assets,Liabilities, Expenses, Revenue,Capital and Drawings.
4. The values from trial balance are used in the preparation of final accounts. Assets,Capital.Drawings and Liabilities are recorded in the Balance sheet ,whereas, Revenue and Expenses are recorded in the Income statement.

Hope you find it helpful   :)

Answer 2

Answer:a) trial balance