Adjustments to Final Accounts
WHERE ARE THESE TO BE FOUND IN A QUESTION
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GENERAL RULE:
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1.
Prepaid Expenses
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Rule:
2.
P+L___________
B/S____________
Rent Receivable/Interest Receivable/Commission Receivable
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___________________________________________________________
Rule:
3.
P+L__________
B/S__________
Accruals
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___________________________________________________________
Rule:
4.
P+L__________
B/S__________
Depreciation
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___________________________________________________________
Rule:
5.
P+L__________
B/S__________
Non Trading stocks
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___________________________________________________________
Rule:
P+L__________
B/S__________
6.
Bad Debts
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___________________________________________________________
Rule:
P+L__________
B/S__________
Sample Question
Think Ltd has Debtors of €20,000. At the end of the year they have
€2,000 in bad debts. Show how this would be recorded in the Trading,
Profit and Loss Account and Balance Sheet
Trading, Profit and Loss Account of Think Ltd (extract)
Balance Sheet of Think Ltd (extract)
General Rule: