Essay --

1.MEANING OF terminal ACCOUNTSFinal accounts refers to the final teachings of accounts ready in order to ascertain and make known the result of the financial activities of a businessAccounting for management, N.P Srinivasan & M. Sakthivel, page no.85. Trial quietus establishes the accuracy of books of accounts. After preparing the trial balance, preparing final accounts is the next step. It includes Balance sheet, addition and Loss account and Trading account. The Balance sheet would gives the financial bit of the business, the gather and passing play account gives the net make or loss earned and that of Trading account gives the gross profit earned or gross loss incurred. At the end of the accounting year shaping prepare final accounts to find out the financial position of the organization. i.e. Profit or Loss.2.TRADING ACCOUNTTrading accounting is an account prepared to ascertain the trading result of a business i.e. the gross profit earned or gross loss incurred fr om buying and selling of goods during a particular period. The excess of net sales total sales less returns everyplace cost of goods sold is termed as gross profit. When the cost of goods sold is to a greater extent than the net sales, the difference is termed as gross loss. The gross profit or loss is transferred to profit and loss account.Accounting for management, N.P Srinivasan & M. Sakthivel, page no.85. Form of trading a/c-TRADING ACCOUNT OF ____________ For the year endingDr. Cr.ParticularsAmount(Rs.)ParticularsAmount(Rs.)To Opening contrastTo purchases ... ...transfer Net loss Capital a/c Dr. 4.BALANCE tackA balance sheet is defined as a statement drawn upon a given date, generally at the end of each accounting year, to measure the exac t financial position of a business, linguistic context for the various assets and liabilities of the concern at this date.On the left get hold of side of the balance sheet, the liabilities and capital are shown. On the right pop off side, all the assets are shown .Therefore, the two sides of a balance sheet moldiness always be equal. Otherwise, there is an error somewhere in the books of accounts. A properly drawn up balance sheet gives information relating to(a)the nature and value of asset(b)the nature and extent of liabilities(c)whether the degenerate is solvent and(d)whether the firm is over trading in short, it explains the financial condition of the concern.