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If the prepaid and outstanding items are given in trial balance and not in adjustments Should we take it to the P/L A/C or not for ex the following sum
Answers (8)
Thread Starter
Divinne FionaPlease answer !
This is not trial balance. It's just information from book of accounts so . We need show both p and l as well as balance sheet.
Thread Starter
Divinne FionaBut in the solution of the sum they haven't recognised it in the profit and loss account
Correct. They already passed the entry. So don't show in p and l . Shud be shown oly in balance sheet . Though they didn't give trial balance amount is from books so solve accordingly.
Thread Starter
Divinne FionaPlease answer !
If any item given in trial balance the adjustment is already made so it it be transferred to respective accounts for example Closing stock if it is given in trial balance dr that means the closing stock which is not given in trail balance cr side it is already adjusted in purchases If closing stock is given in trial balance dr but not in cr Adjusted purchases = actual purchases - closing stock Actual purchases = adjusted purchases + closing stock [illustration 1 in icai material problem] If closing stock is given in cr but not in dr Adjusted purchases = actual purchases+ closing stock Actual purchases = adjusted purchases- closing stock
