Profit and loss ac

Yes, that's correct. If an outstanding or advance payment has already been adjusted in the relevant accounts, it should not appear as an adjustment in the trial balance. Instead, it should be reflected in the balance sheet as either a current liability (outstanding) or a non-current liability (advance payment) depending on the terms of the payment .

Sandeep Kumar

CA Inter

★ 2K+

12-Feb-23 11:57

In that problem they treated that are previous years balances.. So it's not represent in balance sheet

Thread Starter

Someswar Reddy

CMA Inter

★ 240

12-Feb-23 13:09

In another problem they taken that outstanding expenses are already adjusted against respective accounts and shown in balance sheet

Thread Starter

Someswar Reddy

CMA Inter

★ 240

12-Feb-23 13:11

I don't know and confused.. What is the procedure to follow if outstanding and prepaid expenses are given in trail balance itself.. In one problem they taken that are previous year balance(opening of this year) ..in another problem they treated that are this year payables or prepaid which already adjusted against respective accounts and shown in balance sheet

Thread Starter

Someswar Reddy

CMA Inter

★ 240

12-Feb-23 13:15

If an amount is given in balance sheet, it means the amount is already adjusted. Please note that the trial balance items appear only once. You also need to look at additional information.

CA Suraj Lakhotia

Admin

12-Feb-23 15:40