FINAL ACCOUNT

FINAL ACCOUNT

A businessman wants to know profit and loss and also financial condition of his business. For this, he maintains Final Account.

It consist three types of account:-

1)   Trading Account

2)   Profit & Loss Account

3)   Balance Sheet

1)    Trading Account: - Trading Account shows gross profit and gross loss of business.

2)    Profit & Loss Account: - Profit and Loss account shows net profit and net loss of business. In profit and loss account, there are two aspects. First is called Debit side and second is called Credit side. Debit side shows all expenses and losses & Credit side shows all incomes and profits.

3)    Balance Sheet: - Balance Sheet shows assets and liabilities. It shows the financial condition of the business. There are two aspects of balance sheet. First aspect is called liabilities and second is called assets. Liabilities means which we have to pay and assets means which we purchase for self use.

Working steps in Final Account:-

First of all create a company and then create ledger as follow:

Path for ledger creation:- G.O.T. (Gateway of tally)--> account info--> ledger--> create (multiple).

After ledger creation, do voucher entry as follows:

Path for voucher creation:- G.O.T. (Gateway of tally)--> accounting voucher--> press F7 (Journal voucher)

Press F9 (Purchase voucher)

Press F8 (Sales voucher)

Press F7 (Journal voucher)

Press F5 (Payment voucher)

Press F6 (Receipt voucher)

Press F5 (Payment voucher)

To see the report of final account, follow these steps:-

Path for view the report of final account:-

To view profit & loss a/c:- G.O.T. (Gateway of tally)--> profit & loss account.

To view balance sheet:- G.O.T. (Gateway of tally)--> balance sheet.

For more detail, press “Alt + F1”.