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Finalisation Accounts preparation

How to prepare finalisation accounts?
Asked by: Interview Candidate | Asked on: May 30th, 2007
Showing Answers 1 - 3 of 3 Answers

first of all post all the journals in the ledger and then post in the trial balance and from that prepare trading account and manufacturing account (if necessary) and profit and loss account and then prepare profit and loss adjustment account and with the help of the trial balance prepare balance sheet and also show the profit under reserves after deducting the previous year losses and show contigencies (if any) in the notes to accounts

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jabade rajesh

Answered On : Nov 21st, 2007

First of allwe journalise the entries, and post into the ledgers and again prepare the trial balance after that trading and profit & loss a/c, balance sheet. Again we will have to analyse the all aspects for decision making

  
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vasudeo007

Answered On : Aug 31st, 2008

View all answers by vasudeo007

The final accounts are:

Manufacturing Account,
Trading Account,
Profit And Loss Account,
Profit and Loss Appropriation Account and
Balance Sheet.

The process of finalisation is something like this:

Prepare a Trial Balance
See whether it agrees or not
If it does not agree then investigate the ledgers
That process means that see whether Purchase ledger tallies with cash book purchase entries etc.
After that you are ready to finalise the accounts but
provide for taxes
prepare provision for doubtful debts
prepare gross block of fixed assets and depreciation
prepare net block of fixed assets
prepare gross and net block of inventory and value inventory at cost or market value whichever is less,
for this purpose the market value of the inventory need to be ascertained
prepare bank reconciliation statement and tally all bank balances with bank accounts
prepare gross and net block of furniture and fixtures
provide for wages and salaries etc if they are payable after finalisation period

And now finalise the accounts and publish the results.

Hope this answer satisfies you,

Vasudeo.

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