Final Accounts Adjustments

Question 1

Closing stock
Trans
PL
BS

Answer 1

Closing stock ac Dr
Trading ac
Cr of trading ac
Assest of balance sheet

Question 2

Outstanding expense
Trans
PL
BS

Answer 2

Expense ac Dr
To outstanding expense
Dr of pl add with expense
Liabilities side of bs

Question 3

Prepaid ex

Answer 3

Prepaid expense ac Dr
Expense
Less with Dr of pl
Assest of bs

Question 4

Depreciation

Answer 4

Depreciation ac Dr
To machinery
Dr of pl
Assest bs less

Question 5

Acurued income
Income pre given to us

Answer 5

Accrued income ac Dr income ac
Cr add with income of pl
Asset side of balance sheet

Question 6

Income received in advance

Answer 6

Income ac Dr To income rec in ad
Cr of pl deduct from income of pl
Liability of bs

Question 7

Interests on cap

Answer 7

Interests on capital to capital ac
Dr of p and l ac
Liability of bs

Question 8

Interests on drawings

Answer 8

Drawings ac to interst on drawings
Cr of p and l
Liability side less in capital bs

Question 9

Interests on loan

Answer 9

Interests on loan to loan ac
Dr of p and l ac add with interest on loan ac
Liability side of bs with loan

Question 10

Bad debts further added

Answer 10

Baddebt to sundry debtor
Add with old bad debt
Asset side deduct new bad debt