mention and explain the points to be considered while preparing final accounts .
Answers
Answer:
Explanation:
If the trial balance is not already provided, it has to be created and if a difference occurs, it has to be shown in the balance sheet.
The heads provided in trial balance are to appear in profit and loss account, trading account and balance sheet. The balancing will have to be shown twice.
A debited item in trial balance appears on credit side of trading/ profit and loss account and asset side of balance sheet.
The opposite applies for credited items in trial balance.
Nominal accounts will never be shown in balance sheet.
In the absence of trial balance, if there’s a confusion between expenses and incomes, all must be treated as expenses.
If expenses are not specified as factory expenses, they appear in profit and loss account, if it’s specified they appear in trading account.
At times there are latent adjustments which need to be considered while posting the heads.