Final Accounts of Companies
Acc to the sec 210 of companies act, “It is mandatory for the
companies to prepare their Final accounts every year.”
Basic Financial Statements
• Profit and Loss Account• Balance Sheet
Difference between Profit and loss A/c and Profit and loss app A/c
• Items• Results• Closing• Preparation• Balance
Adjustments for the preparation of final Accounts
• Interest on debentures• Discount on issue of debentures• Doubtful Debts• Proposed Dividend
Special Items related to Trial Balance
• Depreciation• Outstanding Expenses• Pre Paid Expenses• Closing Stock• Advance Payment of tax• Share Transfer fees• Income Tax• Dividend to shareholders
• Interim Dividend• Unclaimed dividend• Dividend received• Calls in arrear• Calls in Advance• Forfeited Share Account• Securities Premium Account