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what is finalisation of accounts ? what are finalisation of
accounts entries ?
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Answer Posted / mohandas
Preparation of the statement of account comprising Balance sheet, Profit and Loss Accounts and Notes forming part of the Accounts is the finalisation of accounts after making adequate provision for expenses depreciation etc. After that:-
1) Transfer all revenue accounts to Profit and Loss Account
2) Tally the Profit and Loss Account With Profit and Loss account attached with the Balance Sheet.
3) Balance of all Assets and Liabilites are carried forward to the next year which must match with the Balance sheet figures.
| Is This Answer Correct ? | 53 Yes | 8 No |
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