Finalisation Accounts preparation


First of all we journalise the entries and post into the ledgers and again prepare the



trial balance after that trading and profit & loss a/c balance sheet. Again we will have





to analyse the all aspects for decision makin




The final accounts are:

Manufacturing Account

Trading Account

Profit And Loss Account

Profit and Loss Appropriation Account and

Balance Sheet.

The process of finalisation is something like this:

Prepare a Trial Balance

See whether it agrees or not

If it does not agree then investigate the ledgers

That process means that see whether Purchase ledger tallies with cash book purchase

 entries etc.

 After that you are ready to finalise the accounts but

provide for taxes

prepare provision for doubtful debts


prepare gross block of fixed assets and depreciation


prepare net block of fixed assets


prepare gross and net block of inventory and value inventory at cost or market value



whichever is less


for this purpose the market value of the inventory need to be ascertained

prepare bank reconciliation statement and tally all bank balances with bank accounts

prepare gross and net block of furniture and fixtures

provide for wages and salaries etc if they are payable after finalization period

Total thanks : 1 times

PCC Student (Nov.

how to bookmark this??



thanx sumit.........

service/ student


Question : what is service tax ? due date for pymt ? return forms ? how input credit taken ?



what is finalisation of accounts ? what are finalisation of accounts entries ?



what are the basic accounting entreis ?


 what is vat ? due date for pymt ? return forms ? how input credit taken ?


what is excise ? due date of payment ? due date of return ? return form no. ? what are the entries related ? how cenvat credit is taken


what is depreciation ?  what are the types of depreciation ? what are rate depreciation in companies and income tax 

Accounts Professional

Dear All,



I am followed different procedure for finalization of accounts:


After the booking all entries:

  1. Prepare Trail Balance;
  2. Investigation of ledgers;

(a)    Reconciliation

(i)           Bank,

(ii)         Debtors

(iii)       Creditors


(b)    Registers

(i)     Salary

(ii)   Purchase

(iii) Sales

(iv) Fixed Assets


  1. Inventory Valuation
  2. Taxation (Checking the entries i.e. Credit, TDS etc.)

(a)    Service Tax,

(b)   Sales Tax,

(c)    Income Tax.

  1. Provisions

(a)    Tax,

(b)   RDD,

(c)    Outstanding expenses.



What is the  STEPS FOR FINALISATION OF ACCOUNTS  please please  Reply


very helpful,y cant u explain vth an illustration


bcom(h),ca final

thanks for sharing

Assistant Manager

These are the following steps involoved in Finalisation. 1. Journalising 2. Preparation of Ledgers 3. Prepare unadjusted Trial balance and find out missing figures 4. prepare Adjusted Trial balance by passing necessary adjustment entyries 5. Prepare manufacturing Account or trading & Progfit &loss statement 6. Prepare finally Balance sheet

Total thanks : 1 times

Future CA

Thanks for sharing....




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