NEED FOR ADJUSTMENTS IN PREPARING THE FINAL ACCOUNTS
v NEED FOR ADJUSTMENTS IN PREPARING THE FINAL ACCOUNTS
Final Accounts are prepared every year on the basis of
Accounting Period Assumption, Revenue Recognition Assumption, Accrual
Assumption and Matching Principle, among others. The purpose is to know correct
financial performance and financial position at the end of each financial year.
Therefore, all expenses, whether paid or not, and incomes, whether received or
not, for the year for, which accounts are prepared are accounted. Therefore, it is necessary that:
(i)
Expenditure
incurred whether paid or not, are accounted.
(ii)
Income
earned whether received or not, are accounted.
(iii)
Expenditure
relating to the succeeding (following) years are excluded.
(iv)
Income
relating to the succeeding (following) years is excluded.
v MEANING OF ADJUSTMENTS ENTRY:-
Such items which need to be accounted in books of
account at the time of preparing the Final Accounts are called Adjustments. For
example, outstanding expenses, accrued income, advance income, depreciation, closing
stock etc. Journal entries passed to give effect to the required Adjustments
are known as Adjustment Entries.
Join
COC Education, We provided best video classes for CA/CMA/CS/Class 11th &
12th/ B.com/M.com
Contact
us on- 9999631597,
8448322142, 7303445575
Visit
YouTube Channel CA/CMA Santosh Kumar
Click
Now for Demo Video www.coceducation.com/free-lectures
Join
WhatsApp group for your domain course www.coceducation.com
ENROLLED
WITH US TODAY AND ENLIGHTEN YOUR CAREER!!!
.jpg)
.png)
.png)
.png)
.png)
.png)
Top Reviews
Introduction to Statistics for CA Foundation
Introduction to Statistics for CA Foundation Business Mathematics, Logical Reasoning and Statistics is designed as per latest CA Foundation syllabus for Paper 3 to provide a firm grounding in the principles, techniques and practice. The book adopts self-study approach and has been written in student-friendly manner. With a blend of conceptual learning and problem-solving approach, it offers in-depth understanding of the basic mathematical and statistical tools. #introductiontostatistics
.jpg)
Chapter X of Companies Act 2013
Chapter X of Companies Act 2013 The company shall place the matter relating to such appointment for ratification by members at every annual general meeting. ... Under the Act, the provisions for rotation of auditors in the listed Company & certain other class of Companies, have been provided for. #chapterxofcompaniesact2013
.jpg)
Relevant sections under the Companies Act, 2013 dealing with fraud and false statements
Relevant sections under the Companies Act, 2013 dealing with fraud and false statements The new parent corporate law “The Companies Act 2013” is mostly ... I am limiting my write-up to the provisions to the Act, and I request the readers to refer relevant rules, if any, before ... in the 2013 Act is the Section 447 dealing with “Punishment for fraud”. ... Section 448
.jpg)
What is Corporate Image
What is Corporate Image A corporate identity or corporate image is the manner in which a corporation, firm or business enterprise presents itself to the public. The corporate identity is typically visualized by branding and with the use of trademarks, but it can also include things like product design, advertising, public relations etc #WhatisCorporateImage
.jpg)
What is Energy Audit
What is Energy Audit An energy audit is an inspection survey and an analysis of energy flows for energy conservation in a building. It may include a process or system to reduce the amount of energy input into the system without negatively affecting the output. #whatisenergyaudit
