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Adjustments in Preparation of Financial Statements                             19.3



                           Adjustment in Balance Sheet  (5)  Show on the assets side as a Current   Asset.  Show on the liabilities side as a  Current Liability.  Show on the assets side as a   Current Asset.  Show on the assets side as a   Current Asset.  Show on the liabilities side as a  Current Liability.  Deduct from the concerned asset   on the assets side.  Deduct from debtors on the assets   side.  Deduct from debtors on the assets   side.














                           Adjustment in P & L A/c   (4)  ×         Add to respective expense on the   debit side.  Deduct from respective expense   on the debit side.  Add to respective income on the   credit side.  Deduct from respective income on   the credit side.  Show on the debit side.  Write on the debit side of the Profit  &  Loss  Account or    Provi  sion  for   Doubtful Debts Account.   Show on the debit side.


                       Table of Adjustments (Appearing Outside the Trial Balance)









                           Adjustment in Trading A/c  (3)  Show on the credit side.  Add to the respective expense on   the debit side.  concerned   the   from   expense on the debit side.  ×  ×  ×  ×  ×












                                 ...Dr.  ...Dr.  Deduct   ...Dr.  ...Dr.  ...Dr.     ...Dr.  ...Dr.  ...Dr.

                           Adjusting Entry  (2)  Closing Stock A/c   Trading A/c   Respective Expense A/c   Outstanding Expense A/c  Prepaid or Unexpired  Respective Expense A/c  Accrued Income A/c   Respective Income A/c  Respective Income A/c   Unearned  Income A/c  Depreciation A/c   Assets A/c  Bad Debts A/c   Debtors A/c  Profit & Loss A/c   Provision for  Doubtful Debts A/c



                                                 Expense A/c

                                          To
                                                    To
                                   To



                                                          To       To            To      To      Doubtful     To
                           Adjustments  (1)  Closing Stock  Outstanding Expenses  Prepaid or Unexpired  Expenses  Accrued or Outstanding    Income Received in  Advance  Or  Unearned Income  Depreciation  Bad Debts  for   Provision





                                 1.    2.     3.       4.   Income     5.              6.   7.   8.   Debts
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