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