Welcome to Shri Krishna Education Centre Shri Krishna

Adjustments in Final Accounts 1. Closing Stock Trading A/c Credit side. Trading A/c Balance

2. Outstanding Expenses (+) in respective expense account Trading & P/L A/c To Expense

3. Prepaid Expenses (-) from respective expense account Trading & P/L A/c Balance sheet

4. Accrued Income (+) in respective Income account Profit & Loss A/c Balance sheet

5. Unearned/Prereceived Income Balance sheet Liability side (-) from respective Income account Profit &

6. Interest on capital Profit & Loss a/c Dr. side Profit & Loss A/c

7. Interest on Loan Balance sheet Liability side Profit & Loss a/c Dr. side

8. Depreciation on Fixed Assets Profit & Loss A/c Dr. Side Profit & Loss

9. Bad Debts Profit & Loss A/c Dr. Side Profit & Loss A/c To

10. Provisions for Bad Debts Profit & Loss A/c Dr. Side Profit & Loss

11. Provision for discount on debtors Profit & Loss A/c Dr. Side Profit &

12. Discount on Creditors Profit & Loss A/c Cr. Side Profit & Loss A/c

13. Commission on profits Profit & Loss A/c Dr. Side Profit & Loss A/c

14. Interest on Drawings Profit & Loss A/c Cr. Side Profit & Loss A/c

15. Goods sent on approval basis (-) from sales (S. P) & (+) in

16. Accidental Loss (-) from purchases Trading A/c To Purchases (-) accidental loss Profit

17. Drawings of goods by proprietor (-) form purchases Trading A/c To Purchases (-)

18. Goods in transit Trading a/c Cr. Side Asset side Trading A/c Balance Sheet

Prepared by Ashwani Sharma, For Shri Krishna Education visit us at www. accountsshikshak. com

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Welcome to. Shri Krishna Education Centre Shri Krishna Education visit us at www. accountsshikshak. com 1

Adjustments in Final Accounts 1. Closing Stock Trading A/c Credit side. Trading A/c Balance sheet Assets side Balance Sheet By Closing Stock Shri Krishna Education visit us at www. accountsshikshak. com Stock 2

2. Outstanding Expenses (+) in respective expense account Trading & P/L A/c To Expense (+) o/s Balance sheet Liability side Balance Sheet Outstanding expense Shri Krishna Education visit us at www. accountsshikshak. com 3

3. Prepaid Expenses (-) from respective expense account Trading & P/L A/c Balance sheet Assets side Balance Sheet To Expense (-) Prepaid Expense Shri Krishna Education visit us at www. accountsshikshak. com 4

4. Accrued Income (+) in respective Income account Profit & Loss A/c Balance sheet Assets side Balance Sheet By Income (+) accrued Shri Krishna Education visit us at www. accountsshikshak. com Accrued income 5

5. Unearned/Prereceived Income Balance sheet Liability side (-) from respective Income account Profit & Loss A/c By Income (-) perceived Balance Sheet Perceived income Shri Krishna Education visit us at www. accountsshikshak. com 6

6. Interest on capital Profit & Loss a/c Dr. side Profit & Loss A/c To Interest on capital (+) in Capital Balance Sheet Capital (+) Interest Shri Krishna Education visit us at www. accountsshikshak. com 7

7. Interest on Loan Balance sheet Liability side Profit & Loss a/c Dr. side Profit & Loss A/c To Interest on Loan Balance Sheet Outstanding interest on loan Shri Krishna Education visit us at www. accountsshikshak. com 8

8. Depreciation on Fixed Assets Profit & Loss A/c Dr. Side Profit & Loss A/c (-) from Asset a/c Balance Sheet Machinery (-) Depreciation To depreciation on fixed asset Shri Krishna Education visit us at www. accountsshikshak. com 9

9. Bad Debts Profit & Loss A/c Dr. Side Profit & Loss A/c To Bad debts (-) from Debtors a/c Balance Sheet Debtors (-) Bad debts Shri Krishna Education visit us at www. accountsshikshak. com 10

10. Provisions for Bad Debts Profit & Loss A/c Dr. Side Profit & Loss A/c To provision for Bad debts (-) from Debtors a/c Balance Sheet Debtors (-) prov. For Bad debts Note : If old provision for bad debts are also given in trial balance (have credit balance) then always adjust the old provision with new provision for bad debts (has debit balance) Shri Krishna Education visit us at www. accountsshikshak. com 11

11. Provision for discount on debtors Profit & Loss A/c Dr. Side Profit & Loss A/c (-) from Debtors a/c Balance Sheet Debtors (-) prov. For discount To provision for discount on debtors Shri Krishna Education 9810123857 12

12. Discount on Creditors Profit & Loss A/c Cr. Side Profit & Loss A/c By discount on creditor (-) from Creditors a/c Balance Sheet Creditors (-) discount Shri Krishna Education visit us at www. accountsshikshak. com 13

13. Commission on profits Profit & Loss A/c Dr. Side Profit & Loss A/c To commission Liability side Balance Sheet Outstanding commission Shri Krishna Education visit us at www. accountsshikshak. com 14

14. Interest on Drawings Profit & Loss A/c Cr. Side Profit & Loss A/c By interest on drawings (+) in Drawings a/c or (-) from capital Balance Sheet Capital (-) drawings (-) interest on drawings Shri Krishna Education visit us at www. accountsshikshak. com 15

15. Goods sent on approval basis (-) from sales (S. P) & (+) in closing stock (C. P) Trading A/c (-) from Debtors a/c (S. P) & (+) in Closing Stock Balance Sheet By sales (-) returns (SP) By stock (+) returns (CP) Shri Krishna Education visit us at www. accountsshikshak. com Debtors (-) returns (SP) Stock (+) returns (CP) 16

16. Accidental Loss (-) from purchases Trading A/c To Purchases (-) accidental loss Profit & Loss A/c Dr. Side Profit & loss a/c To Loss by accident Shri Krishna Education visit us at www. accountsshikshak. com 17

17. Drawings of goods by proprietor (-) form purchases Trading A/c To Purchases (-) drawings (+) in drawings a/c Balance Sheet Capital (-) drawings of goods Shri Krishna Education visit us at www. accountsshikshak. com 18

18. Goods in transit Trading a/c Cr. Side Asset side Trading A/c Balance Sheet By goods in transit Goods in transit Shri Krishna Education visit us at www. accountsshikshak. com 19

Prepared by Ashwani Sharma, For Shri Krishna Education visit us at www. accountsshikshak. com