What
are books of accounts?
The books of accounts
primarily consist of journal and Ledger. Journal is used for recording the
transactions in first place and ledger is used to classify those recorded
transaction.
Why
trial balance is not books of accounts?
Trial balance is not
maintained in the books of account, rather can be calculated any time,
therefore it does not make part of books of accounts.
Why
profit & loss account does not part of books of account?
Like trial balance, profit
and loss account can also be calculated from the books of account, and
therefore it is not kept in the form of books, rather is prepared to report the
income. Therefore profit & loss account is report generated from the book
of account.
Why
balance sheet is not part of books of account?
Like trial balance and
profit & loss account, balance sheet can also be calculated at any time
from books of account, and thus not maintained in the book form. Balance sheet
is a report generated from books of account, which shows the financial position.
