Final Accounts is a term that is used in the basic bookkeeping procedures and is referred to the final trail balance of the accounts at the end of a certain accounting period. This is the final trail balance that is used to design and prepare financial statements for that business. This is the same trial balance that is used to close the books including all the journal entries of the accounting system. The final accounts include journal entries such as wages and payroll tax accruals, income tax accruals that are yet to be paid, depreciation and amortization expenses, overhead calculated and allocated and bills issued to the consumers.
Final accounts are strictly based on the final trial balance and final financial statements. The primary financial statements on which the final accounts are based include the income statement, the balance sheet and the cash flow statement. As explained above the final accounts are based on the final trail and balance that means these accounts are based on the ending accounts of the business of that specific accounting period. The final accounts depict the financial status of the business at the end of a specific accounting period. It also depicts the funding sources of the business for that accounting period and the use of that funding during that period.
The final account or final accounting can also be presented as a financial statement when a business transaction has been concluded.
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