Final Accounts LET US SUM UP - Accounts and Finance for Managers

Purposes of preparing the Trial Balance include:

To prepare a statement of disclosure of final accounting balances of various ledger accounts on a particular date.

The classification of the transactions not only on the basis of accounts but also on the basis of payments and receipts. These payments and receipts classification further segmented into categories. The subsidiary journals or books are developed by the firms only based on the occurrence of the transactions. Normally the frequent occurrence of the transactions of the firm are major formation of the subsidiary books of the accounting system.

The Cash transaction is a transaction carried out only out of cash. The cash transactions are recorded in the subsidiary book known as cash book. The cash book can be classified into three categories

  • Single columnar cash book
  • Double columnar cash book
  • Three columnar cash book

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