Adjustments in Preparation of Financial Statements
Commerce ⇒ Accountancy
Adjustments in Preparation of Financial Statements starts at 11 and continues till grade 12.
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A business has accrued interest of ₹1,500 at the end of the year. How will it be treated in the final accounts?
A business has commission receivable of ₹5,000 at year-end. How will it be shown in the final accounts?
A business has paid insurance premium of ₹12,000 for the year ending 31st March 2024, but the accounting year ends on 31st December 2023. Calculate the prepaid insurance to be shown in the Balance Sheet.
A business has rent paid of ₹24,000 for the year, but ₹4,000 is prepaid. What amount will be shown as rent expense in the Profit and Loss Account?
A firm has closing stock of ₹10,000, which is not recorded in the books. What will be the effect on the Trading Account and Balance Sheet after adjustment?
A firm has prepaid insurance of ₹2,000 and outstanding rent of ₹3,000. How will these be shown in the Balance Sheet?
A firm has Sundry Debtors of ₹50,000, Bad Debts of ₹2,000, and wants to create a provision for doubtful debts at 5%. Calculate the provision amount.
Describe the treatment of prepaid rent in the final accounts.
Explain the need for making adjustments for outstanding expenses at the end of the accounting period.
Explain the treatment of accrued income in the final accounts.
Explain the treatment of goods withdrawn by the proprietor for personal use in the final accounts.
Explain the treatment of provision for doubtful debts in the final accounts.
If closing stock is given outside the trial balance, how is it shown in the final accounts?
State the double entry for recording outstanding salaries at the end of the year.
What is meant by 'adjustments' in the preparation of final accounts?
What is the accounting treatment for commission received in advance?
What is the effect of not recording outstanding expenses in the final accounts?
What is the effect of providing depreciation on fixed assets in the final accounts?
What is the purpose of providing for doubtful debts?
