BCom Financial Accounting Study Material Notes Capital Revenue Items
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BCom Financial Accounting Study Material Notes Capital Revenue Items
At the end of every accounting year, financial statements are organized summaries of detailed information about the financial position and performance of a business. Traditionally the term financial statements include only two basic statements which are as under :
1. Balance sheet which shows the financial position of a business on a particular date.
2. Trading and Profit & Loss account which shows net profit earned and net loss incurred during the year.
These accounts are referred to as final accounts. The balance sheet is not an account but when one talks of final accounts, one may be referring to the balance sheet also. Before discussing the preparation of final accounts, it is essential to understand clearly the distinction between the capital and revenue items because while preparing the final accounts, all revenue items would have to be shown in the manufacturing, trading, profit, and loss account whereas capital items will form part of balance sheet. Complete Details in
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BCom Financial Accounting Study Material Notes Capital Revenue Items