Final accounts

Final accounts give a concise idea about the profitability and financial position of a business to its management, owners, and other interested parties. All business transactions are first recorded in a journal. They are then transferred to a ledger and balanced. These final tallies are prepared for a specific period. The preparation of a final accounting is the last stage of the accounting cycle.IT determine the financial position of the business. under this it's compulsory to make trading account, profit and loss account and balance sheet.