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What will the effect of these adjustments on trading nd p&l a/c and balance sheet
Answers (9)
CA Suraj Lakhotia Admin
2. Machinery not recorded. Record machinery and creditor. Impact on depreciation as well. 4. Motor bike - remove from the books. Amount sold is drawing. 6. Portion pertaining to purchases is direct and that to sales is indirect.
How the 6th adjustment is recorded in balance sheet?
Thread Starter
aishwariya PHow the 6th adjustment is recorded in balance sheet?
2/3 is carriage inwards and 1/3 is carriage outwards IE means deduct 2/3 from purchases (carriage inwards ) entry in trading account 1/3 on sales (carriage outwards) entry in p&l account
CA Suraj Lakhotia Admin
Do not deduct from purchases.
Sorry sir I didn't see that carriage expenses present in trial account if that carriage expenses is avaliable then 2/3 is related to purchase and 1/3 is related to Sales am I right sir