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  • List of Adjustments in Final Accounts

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    Monica Rs Sharmaji
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    The document lists 14 items that may require adjustments in final accounts: 1) Closing stock, 2) Outstanding expenses, 3) Prepaid or unexpired expenses, 4) Accrued or outstanding income, 5) Income received in advance or unearned income, 6) Depreciation, 7) Bad debts, 8) Provision for doubtful debts, 9) Provision for discount on debtors, 10) Manager's commission, 11) Interest on capital, 12) Goods distributed among staff members for staff welfare, 13) Drawing of goods for personal use, 14) Abnormal or accidental losses.

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    The document lists 14 items that may require adjustments in final accounts: 1) Closing stock, 2) Outstanding expenses, 3) Prepaid or unexpired expenses, 4) Accrued or outstanding income, 5) Income received in advance or unearned income, 6) Depreciation, 7) Bad debts, 8) Provision for doubtful debts, 9) Provision for discount on debtors, 10) Manager's commission, 11) Interest on capital, 12) Goods distributed among staff members for staff welfare, 13) Drawing of goods for personal use, 14) Abnormal or accidental losses.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    77 views2 pages

    List of Adjustments in Final Accounts

    Uploaded by

    Monica Rs Sharmaji
    The document lists 14 items that may require adjustments in final accounts: 1) Closing stock, 2) Outstanding expenses, 3) Prepaid or unexpired expenses, 4) Accrued or outstanding income, 5) Income received in advance or unearned income, 6) Depreciation, 7) Bad debts, 8) Provision for doubtful debts, 9) Provision for discount on debtors, 10) Manager's commission, 11) Interest on capital, 12) Goods distributed among staff members for staff welfare, 13) Drawing of goods for personal use, 14) Abnormal or accidental losses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    List of Adjustments in Final Accounts

    1. Closing Stock
    2. Outstanding Expenses
    3. Prepaid or Unexpired Expenses
    4. Accrued or Outstanding Income
    5. Income Received In Advance or Unearned Income
    6. Depreciation
    7. Bad Debts
    8. Provision for Doubtful Debts
    9. Provision for Discount on Debtors
    10. Manager’s Commission
    11. Interest on Capital
    12. Goods Distributed among Staff Members for Staff Welfare
    13. Drawing of Goods for Personal Use
    14. Abnormal or Accidental Losses
     

    1. Adjustment of Closing Stock


    Whatever stock of goods is remaining at the end of an accounting year is known as ‘closing stock’. This
    becomes the opening stock of the very next period. Oftentimes closing stock is not shown in the trial
    balance.

    Closing stock is valued at cost or market value (aka net realizable value), whichever is less.

     Treatment of Closing Stock A/C Debit


    Closing Stock
    Adjustment in
    Financial
     To Trading A/C Credit
    Statements

     Trading Account:  Show on the credit side


     Profit & Loss Account: No effect
     Balance Sheet: Show on the assets side (usually under the head current assets)

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