Assistant Statistical Officer Paper II · 4 Financial Accounting · APPSC Paper I
4.4 Final accounts, errors and rectification notes
2 notes, in reading order.
- 4.4.1Final accounts: trading account, profit and loss account and balance sheet with adjustments
Final accounts turn the trial balance into three statements: the trading account gives gross profit, the profit and loss account gives net profit, and the balance sheet shows assets, liabilities and capital on the last day, after every adjustment for items not yet recorded.
Advanced · 10 min · Full course - 4.4.2Errors and their rectification, and the suspense account
Errors are classified as omission, commission, principle and compensating; those that disturb the trial balance are parked in a suspense account and cleared by rectifying entries, each of which may change the profit.
Advanced · 8 min · Full course
Practise Final accounts, errors and rectification. Questions with answers explained, from the same topics.
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