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.