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Final Accounts
The Completion of Accounting Cycle:

  1. Definition and Explanation of Final Accounts:

    Every businessman goes into a business with the idea of making profit, which is the reward of this effort. He tries his best to get more and more profit at the smallest economic cost. Click here to read more.
     

  2. Trial Balance - A Starting Point for Final Accounts:

    The trial balance is simply a list of ledger accounts balances at the end of an accounting period. Click here to read more.
     

  3. Meanings and Sources of Revenue:

    In common language revenue means tax or income. But in a business concern revenue means sales proceeds of goods or services or it is the price of goods sold or services rendered to the customers. Click here to read more.
     

  4. Direct and Indirect Expenses:

    Expenses means the expired costs incurred for earning revenue of a certain accounting period. They are the cost of the goods and services used up in the process of obtaining revenue. Click here to read more.
     

  5. Matching Revenue and Expenses:

    To determine net profit for any particular accounting period, we use the matching principle. Click here to read more.
     

  6. Trading Account:

    The account which is prepared to determine the gross profit or gross loss of a business concern is called trading account. Click here to read more.
     

  7. Profit and Loss Account:

    The account through which annual net profit or loss of a business is ascertained, is called profit and loss account. Gross profit or loss of a business is ascertained through trading account and net profit is determined by deducting all indirect expenses (business operating expenses) from the gross profit through profit and loss account. Thus profit and loss account starts with the result provided by trading account. Click here to read more.
     

  8. Difference between Trading Account and Profit and Loss Account:

    This page explains the difference between trading account and profit and loss account. Click here to read
     

  9. Difference between Gross Profit and Net Profit:

    Gross profit is ascertained by deducting cost of goods sold (all direct expenses like purchases, carriage, custom duty, sock charges, octroi duty etc.) from sales. Click here to read more.
     

  10. Balance Sheet:

    Balance sheet is a list of the accounts having debit balance or credit balance in the ledger. On one side it shows the accounts that have a debit balance and on the other side the accounts that have a credit balance. Click here to read more.
     

  11. Difference between Trial Balance and Balance Sheet:

    This page explains the difference between trail balance and balance sheet. Click here to read

     

  12. Example of Trading and Profit and Loss Account and Balance Sheet:

 

 

 

A D V E R T I S E M E N T

 

Financial Accounting Topics


  Introduction to Accounting
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  Transactions and Accounting Equation
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  Analysis of Business Transactions
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  Journal, Ledger and Trial Balance
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  Accounting for Bills of Exchange
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  Special Journals
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  Cash Book
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Bank Reconciliation Statement
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  Final Accounts
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  Work Sheet
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  Capital and Revenue Items
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  Valuation of Inventories
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  Accounts of Non-profit Making Organizations
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  Statement of Cash Flows
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  Accounting Ratios Analysis
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  Depreciation, Provisions and Reserves
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  Accounting Dictionary
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  Financial Calculators
 
 
 
Managerial Accounting Topics

  Financial Statements
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  Cost Volume Profit Relationship
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  Variable Costing System
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  Materials and Inventory Cost Control
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  Activity Based Costing System
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  Standard Costing and Variance Analysis
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  Balanced Scorecard
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  Capital Investment Analysis/Capital Budgeting
 

 

 

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