Solution:-
The end product of accounting is Income Statement and Balance Sheet. These two statements are prepared at the end of a financial year. We defines both one by one .
1• Income Statement:– An Income Statement that includes Trading and Profit & Loss Account, ascertains the financial result of a business in terms of gross profit or loss.
2• Balance Sheet:– It depicts the true financial positions of a business that provides required information like assets and liabilities of a business firm, to the users of accounting information like owners , investors, government, customers, shareholders etc.