how to do finalisation of accounts
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Answer / srinivas annavarapu
First prepare TB based on your GL, and take cash and bank
balances from Cash book & bank book.
Prepare BRS, stock, Debtors & Creditors reconciliations and
pass the necessary adjustment entries to arrive at the
correct numbers.
Calculate the closing stock.
Identify the amounts payable (Outstanding expenses like
Electricity, Rent, tax etc.) and prepaid expenses if any.
considering all these above prepare Trading, P&L a/c and
balancesheet.
| Is This Answer Correct ? | 272 Yes | 30 No |
Answer / shankarvel
In accounting paralance, finalisation of accounts means
closing the books of entry for the financial year.
This is done as follows:
Prepare as TRIAL BALANCE based on the Ledger accounts.
With the help of T/B, prepare the Final Accounts, namely:
Trading & Profit and Loss Account
Balance Sheet.
Post all the direct expenses and income in Trading Account.
TOTAL DIRECT INCOME - TOTAL DIRECT EXPENSES = GROSS PROFIT.
Carry forward the Gross Profit to P& L A/c
Post all indirect expenses and income in P&L A/c, along
with the Gross Profit brought forward from Trading.
INDIRECT INCOME - INDIRECT EXPENSES = NET PROFIT.
Now post the Net profit to the Balance sheet- add to the
capital account.
Tally the Balance sheet, a well tallied B/S shows accounts
have been finanalised.
Some minor differences can be shown in Suspense account for
rectification later
| Is This Answer Correct ? | 86 Yes | 14 No |
First step.Check all the opening balances of all ledger and P&L A/C and Balance sheet .
Step Two. Check opening balance of Cash and Bank balance is is Tally with bank statement and cash book maintained by the company
Step Three.Post all current year exp and income based on available documents
Than start checking with debtor and creditors reconciliation that means payment to creditors and payment advice received from debtors and arrive the correct closing balance
Check TDS deducted by the debtors while payment made to us is reflected in AS 26 other wise we will not get credit
Check TDS deducted by the companies properly accounted and weather they file returs correctly if not make necessary working and adjustment entries
Than account month end entries like EB ,Rent ,Salary etc.For which benefits consumed in Year end but payment made in next year
Do BRS Reconciliation
If you do this above mentioned correctly Tally or whatever the software used by the company will prepare Financial statement
Than Export to excel and make necessary reporting working and schedule and give to your Auditors they will check and signed the Financial statement
If any thing if you find mistake please inform
| Is This Answer Correct ? | 30 Yes | 1 No |
Answer / sachin
1st u close the books of account like bank , cash , pur,
sale book, than u made Trading & Profit loss account pass
all the entries in ur book than take ur opening bal & than
calculated ur closing bal this closing bal will be take in
trading & Pl account in cr. side (Get close all ur exp.
overdue ) than u can made Balance sheet
| Is This Answer Correct ? | 55 Yes | 30 No |
Answer / shebeen
First you post all entries in the book of original entry
ie, Journal book and then make required ledger accounts
based on journal. After that prepare trial balance based on
the closing balance of ledger a/c's.. and then make Trading
and Profit & loss a/c and balance sheet..... it reflects
your business position.....:)
| Is This Answer Correct ? | 35 Yes | 13 No |
Answer / khan
first we are made the month of all ledger account.
then,
making the trial balance account,
example,
bank account
cash account
purchase
sales
bill payable
bill receivable
accured exps
prepaid exps
after that, we are doing the
trading account - gross pf or gross loss, then
profit & loss account - gross pf or gross loss, then
clearly checking, we are finish that net profit or net loss,
then, taking the opening balance of the balance sheet.
| Is This Answer Correct ? | 19 Yes | 3 No |
Answer / jayasen panigrahy
In finalization of accounts means closing books of entry for the financial year.
First we prepare Trial Balance,With the help of trial balance prepare final account means,
Trading A/c
P & L A/c
Balance Sheet.
| Is This Answer Correct ? | 19 Yes | 6 No |
Answer / kapil tyagi
first you make all nes. entry as
expen.payable ,reciableoffice exp direct and indirect expe
after that make trading account on base of balanse fo
respacted accounts.then make p&l base of Trading A/c.
and last you can Prepaer balance sheet at base of P&L
NOW YOU CAN KM=NOW THE POSITION OF COMPANY
| Is This Answer Correct ? | 16 Yes | 6 No |
Answer / sarath nandan
Prepare trail balance for the particular period
From that prepare schedules then trading
| Is This Answer Correct ? | 7 Yes | 0 No |
Answer / somnath shinde
Prepare Bank Account Tally and ledger general entry pass and fixed assets, depreciation entry pass,prepaid means electrical bill,telephone bill,tax, journal entry pass and make computation make after finalization
| Is This Answer Correct ? | 5 Yes | 0 No |
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