Final Accounts: At the end of accounting year. 1.0 know the business result and financial position of the business, accounts and statements are prepared. They are known as Final or Annual Accounts. Another meaning of Final Accounts is to prepare the Trading Account. Profit and Loss Account and Balance Sheet, Generally. these types of accounts are prepared at the end of the accounting year, therefore, they are known as Final (Annual) Accounts. But sometimes at the end of six or nine months also these types of the accounts are prepared. Institutes like Bank. prepares such interim accounts at the end of six months also, which are known as Final Accounts.

Objectives: According to the meaning, Final (Annual) Accounts have two main objectives:
1. To know the business result and
2. To know the financial position of the business.

1. To know the business result: At the end of the accounting year, to know the result of the business. Trading Account and Profit and Loss Account are prepared. By comparing the expenses and incomes of the business, profit or loss can be found out. From the Trading account Gross profit or Gross loss and from the Profit and Loss Account. Net profit or Net loss can be known.

2. To know the financial position of the business: At the end of the accounting year, a statement is prepared which is known as Balance Sheet. In Balance Sheet. total assets and total liabilities are shown to get the Idea of the financial position of the business. Balance Sheet is a statement showing the financial position of the business.

Other objectives: Other objectives of the Final Accounts are explained below:

• To know the amount of Net capital in the business.
• To know the amount of Non-current Assets and Current Assets.
• To know the amount of Non-current liabilities and current liabilities.
• To know the amount of Reserves and Surplus.
• To know the amount receivable from various debtors.
• To know the amount payable to various creditors.
• To know the Trading profit. Operating profit and Abnormal gains and losses.
• To find out or ascertain the amount of various taxes. i.e.. service tax. income tax. VAT. wealth tax, etc. payable to the State and Central Government.
• To calculate the various ratios for the purpose of financial analysis.
• To enable businessmen to take policy decisions in respect to future business activities.

In the Final Accounts. Trading Account, Profit and Loss Account and a Balance Sheet are prepared. Trading Account and Profit and Loss Account are accounts, while Balance Sheet is statement or a list.