Answer Posted / 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 |
Post New Answer View All Answers
what are the type of cash flows?
How i pass the share holders capital entry in Tally? How to set this option in Tally?
Took goods from the shop for use at home. state whether the the following transcation is business transcation or non business transcation? with reson or explaination?
What Settlement details are required on the delivery instruction slip?
what is the scenario of multi-org setup?
What type of questions are asked for Interview of Manager Finance in Airport Authority of India ?
hi gurus , plz can anybody forward ur cv of accounts/finance related , exp of 4+ years to afreenjuveriya@yahoo.com
what is investment banking
after payment of interest of a loan account by using credit note voucher in tally 9........don't anyone thinks that we have to adjust the cash account by passing cr entry on journal for interest payment...
what salary you expect???
What is the base for issuing of C-form date of sale or date of purchase since goods sent by one quarter ended may reach in next quarter.
1.provide a brief write up on why you consider yourself suitable for the post voting your major achievements? 2. Mention your position in the hierarchy and the levels above and below you ?
closing stock at the end is comprised of %a purchase price of $60000,10% discount and 15% import duty.The stock can be sold for $70000 after incurring costs of $1950.Included in the purchase price is abnormal wastage of $2000.Transportation costs are $1000 and storage costs are $500,what is the value of the closing stock?
if you fix salary to some body for Rs.10000/- what are the segregations to be done and what are the deductions to be done (segregations like basic, da,ta,conveyance etc., how ? what percentage what speaks law) and deductions what are those like, pf,esi,pt, etc., what ever
what are the purpose for the preparation of cost centre ?
