Vaasiyogam | Madurai Sinthamani | Sivaguru Sivasiddhan | Shree Vilvam Yoga Centre

When a person starts a business he wishes to know the financial
performance of his business. A convinient and universally accepted
method of knowing this is to ascertain the profit or loss at yearly intervals
(1st April to 31st March) and the financial position of the business on a
given date. He can ascertain these by preparing the Final Accounts,
which is prepared on the basis of the Trial Balance. The preparation of
Final Accounts is the last step in the accounting cycle and that is why
they are called Final Accounts.

Adjustments
Some important and common items, which need to be adjusted
at the time of preparing the final accounts are discussed below.
1. Closing stock
2. Outstanding expenses
3. Prepaid Expenses
4. Accrued incomes
5. Incomes received in advance
6. Interest on capital
7. Interest on drawings
8. Interest on loan
9. Interest on investment
10. Depreciation
11. Bad Debts
12. Provision for bad and doubtful debts
13. Provision for discount on debtors
14. Provision for discount on creditors.