Steps in Finalization of Accounts

These are the following steps involved in Finalization. 1. Journalizing 2. Preparation of Ledgers 3. Prepare unadjusted Trial balance and find out missing figures 4. Verify the previous years figures to confirm the opening balances. 5. Prepare Adjusted Trial balance by passing necessary adjustment entries 6. Prepare manufacturing Account or trading & Profit &loss statement 7. Prepare finally Balance sheet

Note: presume that you have the trial balance completed and all transactions reflected. The additional

factors to consider are the following: 1. Adjusting entries like provision for depreciation and accounting for accruals that need to be recorded in the accounts. 2. Classification of the account balances in an acceptable layout of the Income Statement and Balance Sheet. 3. Recording of closing entries to prepare the post closing trial balance.