Specifically known as Annual Accounts, these are accounts that depict progress of a business institution, profit and loss associated with a firm and its current financial position at a certain time period. This is generally summarised over a period of one year.
Its primary function is to provide adequate information to management and concerned parties at the end of a specific time period. Being the final step in accounting process, it is divided into:
- Balance sheet
- Profit and Loss account
- Trading account
It is only after Trial Balance that this account is prepared.