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Final accounts adjustments
The document discusses various accounting adjustments that may be needed when preparing financial statements, such as adjusting closing stock, outstanding expenses, outstanding incomes, prepaid expenses, depreciation, bad debts, interest on capital, interest on drawings, interest on investments, and managerial commission. The adjustments are made either to asset, liability, or profit and loss accounts depending on whether they are given inside or outside the trial balance.
Final accounts adjustments
- 1. AMIT KUMAR CS(P),M.COM. JAY MATA DI Mob-9717841557 Adjustments CLOSING STOCK Given outside TB Given inside TB trading a/c---Cr. side B/S--asset side B/S---asset side OUTSTANDING EXPANCES Given outside TB Given inside TB Add in related items B/S--Liability side B/S---Liability side OUTSTANDING INCOMES Given outside TB Given inside TB P & L a/c---Cr. side B/S--asset side B/S---asset side PREPAID EXPANCES Given outside TB Given inside TB Less from related items B/S--asset side B/S---asset side
- 2. AMIT KUMAR CS(P),M.COM. JAY MATA DI Mob-9717841557 RECIEVED IN ADVANCE Given outside TB Given inside TB Less from related items B/S--Liability side B/S---Liability side DEPRECIATION Given outside TB Given inside TB P & L a/c---Dr. side B/S--Less from asset P & L a/c---Dr. side BAD DEBTS Given outside TB Given inside TB P & L a/c---Dr. side B/S--Less from debtor P & L a/c-- Dr.side INTEREST ON CAPITAL Given outside TB Given inside TB P & L a/c---Dr. side B/S--Add with CapitaL P&L a/c---Dr. side
- 3. AMIT KUMAR CS(P),M.COM. JAY MATA DI Mob-9717841557 INTEREST ON DRAWINGS Given outside TB Given inside TB P &L a/c---Cr. side B/S--Less from capital P&L --Cr. Side INTEREST ON INVESTMNTS Given outside TB Given inside TB P & L a/c---Cr. side B/S--Add in investments P & L a/c-- Cr.side manegerial commission when before charging when after charging MC=profit *rate/100 MC=profit* rate/100+rate