Final accounts are the means of conveying to the management, owners and interested outsiders a concise picture of profitability and financial position of the business. It is the end product of accounting process which gives a consolidated accounting information of the accounting period, after the accounting period is over.
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These accounts summaries all the accounting information recorded in the subsidiary books and the ledger running into hundreds or thousands of pages. The basis of preparation of final accounts is the trial balance containing debit and credit balances.