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Presentaion_On_Final_Account[1].

FINAL ACCOUNT <br>its types <br>format

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Presentaion_On_Final_Account[1].

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  1. BUSINESS FINAL ACCOUNT PRESENTATION Submitted to; Sir SYED BAIG SHAH Presented by: SaifurRehman Roll no; 2k22-IT-130.

  2. WHAT IS ACCOUTNING Accounting is process of recording, classification and summarization financial transaction to provide information that is useful in making business decisions.

  3. Meaning of Recording Only those transactions are recorded in the accounting which is of a financial character (Recording in a journal) Meaning of journal A journal is a place of record in which business transactions are recorded in chronological order Meaning of Classification Classification is the process of grouping the transition of one nature of one place in a separate account (posting to a ledger) Meaning of ledger The book a contain classified and permanent record of All transactions of a business is called ledger

  4. FILOW OF THE ACCOUNTING The trial balance is prepared after posting all financial transactions to the journals and summarizing them on the ledger statements. The trial balance is made to ensure that the debits equal the credits in the chart of accounts.

  5. Trading Account • Trading Account is a Nominal Account its • Prepared on the basis of Direct Expensive and • Through trading account we get Gross profit • Gross Profit • Total of credit Side of trading account more than Debit Side its Represents the Gross Profit • Gross Loss • Total of Debit Side of trading account more than Credit Side its Represents the Gross Loss e.g. factory rent, factory insurance, and factory lighting and heating

  6. 2. Profit and loss Account Its nominal Account and Prepared on the basis indirect expenses Through the Profit and Loss Account we get Net Profit Is a credit Side of profit and loss account is higher than Debit Side it Shown the Net profit Net loss Is a debit Side of profit and loss account is higher than credit Side it Shown the net Loss

  7. 3. Balance Sheet Balance Sheet is a Statement not a account its Shown the financial position the business its prepared the Particular date its Summarized Statement of the Ledger Account which has not been the transfer to the trading and Profit and Loss account Balance Sheet is a Statement which is divide into two side. The Left Hand Side of the balance Sheet is known as Liabilities Side and The Right Hand Side of the balance Sheet is known as Assets Side

  8. Trial Account/Balance R P P N N N P R N P N

  9. Balance Sheet

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