Final Accounts with Adjustments

Adjustment entries are made to record

Adjustment entries are made to record omitted transactions, complete incomplete accounts, rectify errors, record accrued income and expenses, and prov

Closing stock is the goods remaining

Closing stock is the goods remaining unsold at the end of the accounting period. It is valued at cost price or realisable value, whichever is less. If

Outstanding expenses are expenses due but

Outstanding expenses are expenses due but not paid at year end. They are added to the related expense in Trading Account or Profit and Loss Account an

Prepaid expenses are expenses paid

Prepaid expenses are expenses paid in advance for a future period. They are deducted from the related expense in Profit and Loss Account and shown as

Accrued income is income earned but

Accrued income is income earned but not received by the end of the accounting year. It is added to the related income in Profit and Loss Account and s