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Final accounts gives an idea about the profitability and financial position of a business to its management, owners, and other interested parties. 
All business transactions are first recorded in a journal. They are then transferred to a ledger and balanced. 
These final tallies are prepared for a specific period. The preparation of a final accounting is the last stage of the accounting cycle. 
It determines the financial position of the business. Under this, it is compulsory to make a trading account, the profit and loss account, and balance sheet.
The term "final accounts" includes the trading account, the profit and loss account, and the balance sheet.

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