ABSTRACT
After all the financial facts have been recorded in the ledger over the whole accounting period, the balance sheet needs to be created. This can be done using the eight-column financial statements. The eight-column financial statements consist of four parts, each with a debit and a credit column: trial balance, balances, income statement, and final balance sheet. The eight-column financial statements will be prepared using the ledger accounts. This chapter familiarises students with the eight-column financial statements, beginning by listing out the components of the eight-column financial statements along with their definitions. It provides remarks and includes multiple exercises that help students try themselves and prepare the eight-column financial statements for a set of financial scenarios.
