FINAL

ACCOUNTS
FINANCIAL STATEMENT
WITH YEAR END
ADJUSTMENTS

FINAL ACCOUNTS/
FINANCIAL STATEMENT
Final accounts are being prepared in
order to determine the financial
position of an organization
Consist of:
Income Statement (Trading, Profit and Loss
Account, Statement of Profit or Loss) and
Balance Sheet (Statement of Financial
Position)
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INCOME STATEMENT
TRADING ACCOUNTS
All revenue and expenses pertaining to
buying and selling of goods are recorded
in the trading account
Gross profit or gross loss will be derived
from the trading account
GP/GL = Sales Cost of goods sold
Gross Profit = Sales > COGS
Gross Loss = Sales < COGS

INCOME STATEMENT
PROFIT AND LOSS (P&L) ACCOUNT
Other revenue earned and expenses incurred will be
shown in P&L account
P&L account is prepared to determine net profit or net
loss of the business
Net profit/net loss = Gross profit + Other Revenue and
gain Expenses
Net Profit = Revenues > Expenses
Net Loss = Revenues < Expenses
Net profit and Net Loss will be transfer to B/Sheet
Net profit will be added to the opening capital
Net loss will be deducted from opening capital
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BALANCE SHEET
To show the financial position of the
business in term of its assets,
liabilities and capital as at a certain
date