Final accounts are the combination of trading account, profit and loss account and balance sheet. It is the account that is prepared at the end of the given period in order to find out the financial position of a going concern.
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Profit and loss account is the second step of final accounts. It is prepared to ascertain the net profit or the net loss of the business during the accounting period.
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Trading account is prepared with a view to determine the amount of gross profit or gross loss made by the business during the given period of time.
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The balance sheet is a statement of assets, capital, and liabilities of the business. It is the statement, which depicts the financial position of the business on a particular date.
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