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Preparation of Final Accounts

While preparing final accounts, the following basic principles must be adopted:

  • Distinction should be made between capital and revenue of both, incomes and expenditures
  • Only items of the current year should appear in the final accounts and not items of preceding or succeeding years as it is prepared an accrual system
  • Personal incomes and expenditures should be separated from business incomes and expenditures
  • All material items that will impact the financial statement should be disclosed separately

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