The 6 most common adjustments in Final Accounts Question - For PUC XII Accountancy Students

Dear Students,

Remember that the Debit and Credit items listed in Trial Balance have to be recorded only once (either in Trading -P&L A/c or Balance Sheet). However, the adjustments following the trial balance table have to be recorded twice-

Here are the list of few commonly asked adjustments in a Final Accounts Sum-

1. Closing Stock- Credit Side of Trading A/c, Current Assets in Balance Sheet

2. Outstanding Expenses- Add to respective expense head in Trading- P&L A/c, Current Liabilities in Balance Sheet

3. Prepaid Expenses- Subtract from respective expense head in Trading- P&L A/c, Current Assets in Balance Sheet

4. Depreciation on Fixed Assets- P&L A/c Debit side, Subtract from respective Fixed Asset in Balance Sheet

5. Baddebts- P&L A/c Debit side, Subtract from Debtors in Balance Sheet

6. Provision for Doubtful Debts- P&L A/c Debit side add to Baddebts, Subtract from Debtors in Balance Sheet after subtracting baddebts.

All the best.