Final Accounts - Financial Accounting - Study Notes

Study Notes - Preparation of Final Accounts

  1. Organisations need for additional information
  2. Making up Final Accounts - To derive the additional information needed
  3. Preparing Trading and Profit & Loss a/c - To derive information relating to profit
  4. Preparing Trading and Profit & Loss a/c - Illustration
  5. Preparing the Balance Sheet - To derive information relating to Position - Illustration
  6. Need for a separate Trading a/c and Profit & Loss a/c
  7. Transfer of Net Profit to Capital a/c or Profit & Loss Appropriation a/c
  8. Using Trial Balance in the Preparation of Final Accounts
  9. What are Adjustments? Dealing with them in preparing Final Accounts
  10. Trading Account - Ascertaining Cost of Goods Sold
  11. Trading Account - Closing Stock, Opening Stock and their Valuation
  12. Trading Account - Recording Closing Stock and Opening Stock
  13. Trading Account - Purchase Returns and Sales Returns
  14. Adjusted Trial Balance for preparing Final Accounts
  15. Bases/Systems of Accounting - Cash, Mercantile, Hybrid
  16. Converting the Basis/System of Accounting - Cash to Mercantile or Mercantile to Cash
  17. Finding Profits of a period under a Basis given profits under the other
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  19. More Topics - Under Construction.
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Study Notes - Adjustments

  1. Expenditure - Outstanding and Prepaid
  2. Incomes - Receivable and Prereceived
  3. Drawings of Goods/Stock - Used up by owners Personally
  4. Goods/Stock used in the building up or construction of an asset
  5. Goods/Stock used for Advertisement Purposes
  6. Valuation of Normal/Abnormal Losses
  7. Abnormal Loss - Accounting Treatment & Adjustment
  8. Normal Loss - Accounting Treatment & Adjustment
  9.  
  10. More Topics - Under Construction.
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Author : The Edifier