Last Updated On: 09-Jan-2022Posted On: 07-Nov-2021
The final accounts for a sole dealer business are the Income Statement (Trading and Profit and Loss Account) and the Balance Sheet. The final accounts give an image of the money-related situation of the business. It shows whether or not your business has made a benefit or loss during the bookkeeping time frame and whether debts can be paid as they become due.
After the trial balance gets completed, final accounts of the sole proprietorship are prepared. The last account of sole proprietorship business incorporates the Income Statement (Exchanging and Profit and Loss account) and the balance sheet. The trial balance is the synopsis of the parties in the entirety of all accounts of the sole proprietorship. A portion of these parities (those from the nominal accounts) influence the profit and are moved to the Income Statement; the real and personal accounts are moved to the Balance Sheet. The Income Statement and the Balance Sheet are set up toward the finish of each financial period to record how well the business worked during that budgetary period.
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