4 Financial Accounting · 4.4 Final accounts, errors and rectification
4.4.1 Final 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.
- APPSC Paper I
- Advanced level
- 10 min read
- Full course
Key terms
- final accounts
- trading account
- gross profit
- cost of goods sold
- profit and loss account
- net profit
- balance sheet
- closing stock
- outstanding expenses
- prepaid expenses
- accrued income
- depreciation
- bad debts
- provision for doubtful debts
- manager's commission
- interest on capital
- interest on drawings
- marshalling
What this note covers
- Core factsFoundation
- ExplainedStandard
- DeeperAdvanced
- Mains writingMains writing
- Common trapsFoundation
- Quick revisionFoundation
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