In this article we will study about Final Accounts: Trading and Profit & Loss Accounts, Balance sheet. we will discuss trading and Profit & Loss Accounts and also discuss about Company Balance and also discuss that why trading and Profit & Loss account and Balance sheet is important in company and different formats of Final Accounts. An income statement or profit and loss account (also referred to as a profit and loss statement (P&L), statement of profit or loss, revenue statement, statement of financial performance, earnings statement, operating statement, or statement of operations) is one of the financial statements of a company
Final Accounts : Trading and Profit & Loss Accounts, Balance sheet
Trading Account :-
Trading account refers to that account which is prepared by the company to shows the transactions results which includes buying and selling during an accounting period. This account is prepared to ascertain gross profit and gross loss by company within an accounting period.
Profit and Loss Account :-
Profit and Loss account is the one of the financial accounts prepared by company during an account period to ascertain whether company is ascertaining profit or loss. Also helps to calculate Net profit or Net loss of the company.
Format of Trading and Profit and Loss Account :-
(1). Trading and Profit and Loss accounts [ Horizontal Format ]
(2). Trading and Profit and Loss accounts [ Vertical format ]
Balance Sheet :-
It is an Financial statement prepared by company at a particular period of time to ascertain position of company. It also shows the nature and amount of assets, liabilities and Capital of a Company .
Format of balance Sheet :
(3). Balance sheet [ Horizontal format ]
(4). Balance Sheet [ Vertical format ]
So we have studied about Final Accounts : Trading and Profit & Loss Accounts, Balance sheet. we also discussed trading and Profit & Loss Accounts and also discuss about Company Balance. If you have any query please let us know in the comments scetion.