What do I get?

• Final accounts are the last stage of the financial system of an organization. It shows both the financial position of the company and profitability to the company and its owners and other interested parties. All the financial transactions are first recorded in journals then posted in a ledger and then they are balanced, and final accounts summarises them all. If the debit side is greater than the credit side, the excess amount is called gross profit. It is moved to the credit side of profit and loss accounts. If the credit side is greater than the debit side; the excess credit amount is called gross loss. It is moved to the debit side of profit and loss account. It the second step of final accounts. At this step net profit and the net loss is calculated by the business. It takes net profit and net loss from the trading accounts; transfer all the indirect expense accounts, such as salary and wages, utility expense and advertising expense, etc. to the debit side and transfers all the indirect incomes such as interest earned, dividends shared and profit on sales earned on the credit side. It basically separates our earning and expenses so that we can further process with the final accounts with the least possible errors. The balance sheet is the final step of final accounts; construct to find out the financial position of the business at a particular period fiscal or annual. Balance sheets consist of three building blocks of basic accounting i.e. assets, liability and owner’s equity/owner’s capital.

What do I need?

• There no prerequisites required for entry onto this course