Final Account Objectives

1. A statement showing the financial position of the concern/business on a particular day.
2. A group of different accounts. viz. Trading A/c , P/L A/c and Balance Sheet.
3. Account prepared on the basis of direct expenses and direct income to ascertain gross profit or gross loss made in the business.
4. Debit balance of Trading A/c
5. Credit balance of Trading A/c
6. Expenses which have direct relation with the production and they are necessarily incurred in the factory.
7. Account prepared on the basis of indirect expenses and indirect incomes to ascertain net profit or net loss made in the business.
8. Debit balance of Profit and Loss A/c
9. Assets which remain in the business for a long period of time and which are used for production of goods and services.
10. Assets which remain in the business for a long period of time and which are used for production of goods and services.
11. Assets which remain in the business for very short period of time and which are used for maintaining liquidity of the business.
12. Stock of goods at the end of the accounting period.
13. Stock of goods in the beginning of the accounting period
14. Such capital method in which both a Capital A/c and a Current A/c are maintained for each partner.
15. List of Debit and Credit Balance on the ledger accounts.
16. The balance which cannot be receivable from the debtors.
17. The part of sundry debtors which are definitely not recoverable.
18. Expenses due but not paid.
19. Expenses paid in advance for the period which has not expired.
20. Income received in advance before its due date.
21. Income occurred yet not received.
22. The account to which all adjustments are made if capital is fixed.
23. Amount or Goods withdrawn by the partners for personal use.
24. The transport expenses incurred to carry the goods purchased by the firm.
25. A provision which is created on sundry debtors.
26. The accounts which are prepared at the end of each financial year.

Answers.

1. Balance sheet
2. Final accounts
3. Trading Account
4. Gross Loss
5. Gross Profit
6. Direct Expenses
7. Profit and Loss A/c
8. Net loss
9. Net profit
10. Fixed assets
11. Current assets
12. Closing Stock
13. Opening Stock
14. Fixed capital method
15. Trial Balance
16. Bad debts
17. Bad debts
18. Outstanding expenses
19. Prepaid Expenses
20. Pre - received income
21. Outstanding income
22. Current account
23. Drawings of a partner
24. Carriage inward
25. Reserve for doubtful debts
26. Final accounts.