Financial and Management Accoutning - Unit 1 - final accounting

1. 19MST15 – FINANCIAL AND
MANAGEMENT ACCOUNTING
M. NANDHAKUMAR
ERODE SENGUNTHAR ENGINEERING COLLEGE (AUTONOMOUS)
PERUNDURAI, ERODE

2. FINAL ACCOUNTING
• Final accounts gives an idea about the profitability and financial positions of
a business to its management , owners and other parties.
• All business transactions are 1st recorded in a journal. They are transferred to
ledger and balanced.
• The final account are prepared for a specific period. The preparation of a
final accounting is the last stage of the accounting cycle.
• Under this final account compulsory to make a trading A/c, Profit and Loss
A/c (P & L A/c) and balance sheet.

3. TRADING A/C
• Its shows the buying and selling of good services.
• This sheet is prepared the D/B selling price and cost price.
• The trading A/c is prepared to show the trading results of the business
• E.g gross profit r gross losses
• Its records the direct expenses of business firm.

4. PROFIT AND LOSS A/C [P & L A/C]
• This a/c is prepared to ascertain the net profit/loss of a business during an
accounting year and expenses of an accounting yr.
• It records the indirect expenses of a business firm like rent, salaries and
advertising expenses.
• It includes the expenses and losses and income and gains

5. THANK YOU