Trading Concerns: Trading concerns are those which do not manufacture goods, rather, they buy finished goods from the manufacturer or wholesaler and sell them to retailer or direct to customers. There are four stages in the Final Accounts of a trading concern. Trading Account: This shows gross result of the business. Profit and Loss Account: This shows net results of the business. Profit and Loss appropriation Account: This shows how the net profit or loss of the business has been distributed or disposed off. This is not prepared in the case of sole proprietorship ship business. Balance Sheet: This discloses the final position of the business. Manufacturing Concerns: Manufacturing concerns are those which produce or manufacture goods i.e. Convert raw material into finished goods. They sell the goods to the wholesaler or dealers. There are five stages in the Final Accounts of a manufacturing concern: Manufacturing Account…this shows the cost of goods manufactured. Trading account: Profit and Loss account: Profit and Loss Appropriation Account. Balance Sheet: All the above mentioned stages are collectively known as Final Accounts or financial statement. Profit or Loss of every business is generally determined in two stages. In the first stage Gross result is ascertained and in the second stage net profit or net loss is ascertained.