Final Account Class 12 Complete Guide

This article is a guide for students in Class 12 in Nepal who are studying final accounts. It helps make the Chapter  easy and fun, with simple explanations and a bit of humor to make it more interesting. It covers all the important information needed to do well in the final accounts exam. So, don't be afraid of final accounts anymore, this guide is here to help .

We Will Learn Following Topic in This Chapter (Final Account) :

• Defination 
• Trading Account
• Profit And Loss Account
• Profit And Appropriation Account
• Balance Sheet
•  Adjustment  

         8 marks question will be asked in 12 board Exam

Defination Of Final Account ?

Final accounts are financial statements that summarize a company's financial activity over a specific period of time, usually a fiscal year. They include the balance sheet, income statement, and cash flow statement and provide a complete picture of a company's financial position, performance, and cash flow. They are used to assess the company's profitability, liquidity, and overall financial health.

You Should Follow These Step To Be Able For Solving Numericals Problems OF Final Account  :   

Step 1 :  Read the Format of Trading Account , Profit And Loss Account , P/L Appropriation And BalanceSheet Which Are Given Below :-  

   Trading Account : A trading account is a financial document that shows the income and         expenses of a business at production level or  in the factory. 

Trading Accounts Format

   Profit And Loss Account : A profit and Loss  account is a financial document that shows      the  income and  expenses of a business from production to the selling  and distribution of a      product  . 

  

Profit and Loss Account Format

 Profit and Loss Appropriation Account :  A profit  and loss Appropriation Account  is a financial statement that shows the allocation of net profit (or net loss) of a business to different reserves or dividends.

     

P/L  Appropriation Account Format

Balance Sheet : A balance sheet is a financial statement that shows a company's financial position by listing its assets, liabilities, and equity at a specific point in time

BalanceSheet Format 

Step 2 :  Read  the Adjustment Point  which are Given Below :- 

The Point on the adjustment are posted in two place. 

Example :-       

  Closing Stock -> Trial Balance :

1.   Assets Side of Balance sheet

    Closing Stock -> Adjustment  :  

1.   Assets Side of Balance sheet
2.    Cr Side of Trading Account     

              

 

            

Adjustment Point Img

     

        

 Step 3 : Solving A Class 12 Final Account Problem :-

 Question

                                                             

   Solution

     

           

 I hope  this article is helpful for you , leave a Comment which inspire me to write more article like this 😉😉😉 .