12. Preparation of financial statements with adjustments

Question 1

Steps to trial balance 1

Answer 1

Transactions recorded in ledger accounts
DR
CR

Question 2

Steps to trial balance 2

Answer 2

ledger accounts balanced

Question 3

Steps to trial balance 3

Answer 3

trial balance extracted and check it balances

Question 4

Steps to trial balance 4

Answer 4

year end adjustments made and ledger accounts closed off (and moved to SPL, leave balances for SFP)
i.e. correct any errors, accruals & prepayments, closing inventory, depreciation/ amortization, allowance for receivables

Question 5

Steps to trial balance 5

Answer 5

finalized trial balance and ledger accounts used to prepare financial statements