A joint stock company is required to prepare its final accounts at the end of every financial year. The preparation of final accounts of a joint stock company includes the preparation of a set of accounts and statement at the end of a financial year. Every company should prepare final account as per theprovision made in thecompanies act under which they are incorporated.
Adjustment for final account are those transactions which do not appear in a ledger account. It is the process of preparing final accounts helps to determine the actual amount of income and expenses as well as the historical value of assets.