What is Meant by Final Account?
Subject: Accounting | Topics:

What is Meant by Final Account?

Final accounts are the means of conveying to the management, owners and interested outsiders a concise picture of profitability and financial position of the business. It is the end product of accounting process which gives a consolidated accounting information of the accounting period, after the accounting period is over.

These accounts summaries all the accounting information recorded in the subsidiary books and the ledger running into hundreds or thousands of pages. The basis of preparation of final accounts is the trial balance containing debit and credit balances.

Accordingly, accounts are classified into five categories.

  1. Assets Account
  2. Liabilities Account
  3. Capital Account
  4. Account of Expenses and Loss items
  5. Account of Income and Gain items or Revenue Account


Classify the following accounts as per accounting equation approach:

  1. Capital brought in
  2. Land purchased
  3. Purchases
  4. Sales
  5. Cash paid
  6. Cash received
  7. Subscription received
  8. Furniture purchased
  9. Sales returns
  10. Purchase returns
  11. Bank A/c
  12. Wages paid
  13. Bank overdraft
  14. Outstanding salary
  15. Interest accrued


  1. Capital A/c
  2. Assets A/c
  3. Expenses A/c
  4. Revenue A/c
  5. Assets A/c
  6. Assets A/c
  7. Revenue A/c
  8. Assets A/c
  9. Revenue A/c
  10. Expenses A/c
  11. Assets A/c
  12. Expenses A/c
  13. Liabilities A/c
  14. Liabilities A/c
  15. Assets A/c


Related Accounting Paper:

Popular Accounting Paper:

Contemporary Issues of Cost and Management Accounting in Bangladesh

Abstract Cost and Management Accounting practice helps an organization to survive in the competitive, ever-changing world, because it provides an important competitive advantage for an organization that guides managerial action, motivates behaviors, supports and creates the cultural values necess.....

Accounting Principle : The Recording Process

The Recording Process are entering transactions in the general journal and posting them to the correct general ledger accounts is time consuming. In the general journal, a simple transaction requires three lines—two to list the accounts and one to describe the transaction. The transaction must .....

Traditional Approaches to Accounting Formulation Theory

Introduction Various approaches have applied over time to the formulation of an accounting formulation theory. Some of these approaches are known as “traditional” approaches, because they are characterized by the absence of a vigorous process of verification in the attempt to develop an accou.....

Account Receivable Management at Tata Steel

The project deals in “account receivable management at Tata Steel”. Account receivable management is one of the most important aspects of an organization, as it deals with the management of the outstanding. The profit of the company mainly depends on the accounts receivables. This report brie.....

Internship Report on Accounting System of Uttara Bank Ltd Shymoli Branch Dhaka

 1.1    Introduction: The internship program of BBA students of Department of Marketing, Institute of Business Studies, DarulIhsanUniversity, is an imputing part of the BBA program, 3 credit hours are for this internship program, out of 135 credit hours of the program. The program is for 3 m.....