Final accounts encompass three key components: the Trading
Account, the Profit and Loss Account, and the Balance Sheet.
- The Trading
Account is the first part of the final accounts.
- It shows the
gross profit or gross loss of a business.
- It provides a
summary of all revenues and expenses incurred during a specific accounting
period.
- The result is
either a net profit or net loss.
- It consists of
assets, liabilities, and equity.
How to prepare it?
