Final Accounts
Final Accounts: Overview
This topic covers concepts such as, Final Accounts etc.
Important Questions on Final Accounts
What is the first step in preparing the final accounts of a partnership firm?
Where are partners' drawings recorded in the final accounts of a partnership firm?
In which account are partners' salaries recorded in the final accounts of a partnership firm?
What is the main purpose of preparing the Profit and Loss Appropriation Account in partnership accounts?
Which of the following is prepared to determine the financial position of a partnership firm at the end of the accounting period?
The steps in the process of preparing Profit and Loss Appropriation account are:
(A) Transfer the net profit to the credit side of P & L Appropriation A/c
(B) Divide the Profit among partners in the Profit Sharing ratio
(C) Ascertain net profit after providing for all charges
(D) Debit the P & L Appropriation A/c with all appropriations like partners salary etc.
(E) Credit the P & L Appropriation A/c with interest on drawing and deficiency on account of partner’s guarantee of earnings to the firm.
Choose the correct answer from the options given below:
Identify the correct sequence to be followed while preparing the final account of a partnership firm:
(A) Profit and Loss Appropriation Account
(B) Profit and Loss Account
(C) Trading Account
(D) Balance Sheet
Choose the correct answer from the options given below:
