Dr.S.S.Jadhav Head, Dept of Commerce mrs.k.s.k . college beed

1. Dr.S.S.JadhavHead, Dept of Commercemrs.k.s.k. college beed

2. COMPANY FINAL ACCOUNT • Accounting is an art, it is an art of recording transaction and reporting results. Final account are for results. • Final accounts are prepared to show business profit over a period of time and business position at a point of time. • Final Account supply a wealth of information incomes, expenses, profits, assets, liabilities, reserves, almost everything about the business. • Final account explain the performance and the position of a company far better than a whole library of books. They are such a wonderful statements. • Preparation of final accounts is compulsory for a company. The final accounts of company consist of – 1. Profit and Loss Account 2. Profit and Loss Appropriation Account 3. Balance Sheet. Profit and Loss Account Profit and Loss account shows the result of business operations during a particular period of time. The profit and Loss account itself is divided in to two parts- the first part for calculating gross profit and second part for calculating net profit. It is prepared at the end of an accounting period and shows profit or loss made during that period. The Specimen account given below

3. ……….…..Co.Ltd. Profit and Loss A/c For the year ended …………. Dr. Cr. …… …… ------------- -------------

4. ……….…..Co.Ltd. Profit and Loss A/c For the year ended …………. Dr. Cr.

5. Profit and Loss Appropriation Account Appropriation means division. Profit and Loss Appropriation Account shows the division of company’s profits. The Profit and Loss Appropriation appears as follows: ……….…..Co.Ltd. Profit and Loss Appropriation A/c For the year ended …………. ----------- ----------- …… …… ------------- -------------

6. Balance Sheet A balance sheet is a statement of assets and liabilities. It shows the financial position of a business on a particular date. The balance sheet of a company must be prepared in the prescribed for, the summarised version of which is given below: The Indian companies Act,1956 Schedule VI Part I (Section 211) ……….…..Co.Ltd. Balance Sheet As at …………. ----------- ----------- …… …… ------------- -------------

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