JUNIOR CYCLE BUSINESS STUDIES PREPARING THE FINAL ACCOUNTS
Now that we know how to prepare an income statement (from income statement 1 and income statement 2) and a statement of financial position, we will look at preparing both accounts for a business.
When preparing the final accounts, you should begin by examining the trial balance and recording where each entry will be entered in the final accounts (i.e. its position). The following abbreviations can be used:
IS1 Income statement 1 IS2 Income statement 2 SFP Statement of financial position FA Fixed assets CA Current assets CL Current Liabilities FB Financed by
