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How to Prepare Final Accounts (Step by step procedure) for BBA/ Bcom/ BBM students

Madhura Sagar G.
09/04/2020 0 1

Dear Students,

Final Accounts question is a very scoring question in the accountancy Paper and is also a compulsory question for most of the boards.

So here is the list of simple steps  to be follwed while solving a final Accounts sum:

1. Read the list of Trial Balance items and adjustments carefully

2. Record all the debit items given in the Trial Balance on either expenses side of Trading-P&L Account or Asset Side of Balancesheet

3. Record all the credit items given in the Trial Balance on either Income side of Trading-P&L Account or Liabilities Side of Balancesheet

4. Remember to post all the trial balance items only once, but all the adjustments items twice (one debit effect and one credit effect)

5. Balance your trading-P&L a/c first and determine profit/loss

6. Add this profit obtained with the Capital, on the liabilities side of the balance sheet

7. Take the total of the balance sheet.

Remember every debit has a corresponding credit.

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Noki Fortunate | 23/06/2021

c) Explain the steps involved in the preparation of final accounts in single entry

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