Explain final accounts of a proprietary concern.
Understand the Problem
The image shows a table of contents for the topic of final accounts of a proprietary concern. The contents include the meaning, objectives, and importance of final accounts, preparation of trading account, profit and loss account, balance sheet, and effects of following adjustments like closing stock, outstanding expenses, prepaid expenses, depreciation on assets, bad debts and R.D.D.
Answer
Final accounts include the trading account, profit and loss account, and balance sheet, showing the financial position and profitability of the business.
Final accounts of a proprietary concern consist of the trading account, profit and loss account, and balance sheet. These accounts show the financial position of the business, the profit or loss incurred, and the assets, liabilities, and equity at a specific point in time.
Answer for screen readers
Final accounts of a proprietary concern consist of the trading account, profit and loss account, and balance sheet. These accounts show the financial position of the business, the profit or loss incurred, and the assets, liabilities, and equity at a specific point in time.
More Information
Final accounts are usually prepared at the end of an accounting year.
Tips
A common mistake is not understanding how adjustments affect the final accounts. Always remember to adjust for items like closing stock, outstanding expenses, and depreciation to get an accurate financial picture.
Sources
- FINAL ACCOUNTS OF PROPRIETARY CONCERN - studocu.com
- Final Accounts of Sole Proprietors: Preparation Guide - Vedantu - vedantu.com
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