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
First of all we 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
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.
