State What is End Product of Financial Accounting? - Bzziii

State what is end product of financial accounting?

The end product of financial accounting are Trading account, Profit and loss account and Balance sheet.

(a) Trading account : Trading account is a statement which is shows the gross profit of business activities during a specific period.

Elements of the Trading Accounts

1. Opening Stock. 
2. Gross Profit.
3. Direct Expenses.
4. Gross Loss.
5. Closing Stock.
6. Sales Revenue, etc.

(b) Profit and loss account : profit and loss account is the financial statements of a company this account shows the company's revenues and expenses during a particular period.

Elements of the Profit and loss account

1. Revenue (`"Sales"/"Turnover"`)
2. Cost of goods sold (COGS)
3. Gross profit (Revenue - COGS)
4. Expenses.
5. Net profit (Gross profit - Expenses)

(c) Balance sheet : Balance sheet is a summary of the financial balances of an individual or organization The Balance sheet displays the company's total assets and how the assets are financed, either through either debt or equity.

Elements of the Balance sheet

1. Assets
2. Liabilities
3. net worth or equity

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Introduction to Accounting
Class 11-Accountancy