Riaz Academy
Preparation of final account is the last stage of the Accounting Cycle. The basic objectiveof every concern maintaining the book of accounts is to find out the profit or loss in their businessat the end of the year. Every businessman wishes to ascertainthe financial position of his business firm as a whole during the particular period. In order to achievethe objectives for thefirm, it is essential to prepare final accounts which include Trading,Profit and Loss Account and Balance Sheet.
The determination of profit or loss is done by preparinga Trading, Profit and Loss Account.
The purpose of preparing the Balance Sheet is to know the financial soundnessof a concern as a whole during the particular period.