The final accounts preparation

Manufacturing Account,
Trading Account,
Profit And Loss Account,
Profit and Loss Appropriation Account and
Balance Sheet.

The process of finalisation is something like this:

Prepare a Trial Balance
See whether it agrees or not
If it does not agree then investigate the ledgers
That process means that see whether Purchase ledger tallies with cash book purchase entries etc.
After that you are ready to finalise the accounts but
provide for taxes
prepare provision for doubtful debts
prepare gross block of fixed assets and depreciation
prepare net block of fixed assets
prepare gross and net block of inventory and value inventory at cost or market value whichever is less,
for this purpose the market value of the inventory need to be ascertained
prepare bank reconciliation statement and tally all bank balances with bank accounts
prepare gross and net block of furniture and fixtures
provide for wages and salaries etc if they are payable after finalisation period

And now finalise the accounts and publish the results.

Hope this answer satisfies you,

Vasudeo.

                                                      

In accounting paralance, finalisation of accounts means closing the books of entry for the financial year.
This is done as follows:

Prepare as TRIAL BALANCE based on the Ledger accounts.
With the help of T/B, prepare the Final Accounts, namely:
Trading & Profit and Loss Account
Balance Sheet.

Post all the direct expenses and income in TradinG Account.

TOTAL DIRECT INCOME - TOTAL DIRECT EXPENSES = GROSS PROFIT.

Carry forward the Gross Profit to P& L A/c

Post all indirect expenses and income in P&L A/c, along with the Gross Profit brought forward from Trading.

INDIRECT INCOME - INDIRECT EXPENSES = NET PROFIT.

Now post the Net profit to the Balance sheet- add to the capital account.

Tally the Balance sheet, a well tallied B/S shows accounts have been finanalised.

Some minor differences can be shown in Suspense account for rectification later.