JAIIB | AFB | Preparation of Final Accounts

JAIIB | AFB | Preparation of Final Accounts
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The first step in the preparation of final accounts is the preparation of trial balance. So it is absolutely essential that we prepare the trial balance perfectly, so our final accounts do not contain any errors. 
Some of the expenses may have been incurred but not paid
Some of the expenses may have been paid in advance but not incurred
Some income may have accrued but not received
Some incomes may have been received but not accrued
If we have recorded all the transactions, their arithmetical accuracy has been checked by the trial balance and the required adjusting entries have been made, we should be able to find out the results of the operations during the accounting period and also know the financial position of the business at the close the year.

This is done through preparing the Profit and loss account and the Balance sheet (Both these are called the financial statements).