19 November 2011
why is adjustments in final accounts? why are the items given in trial balance required to be recorded only once in the final accounts?
19 November 2011
some of transactions based on accrual concept and closing stock and others are required to be account for at the year end.
After preparation of trail balance all accounts are closed, once again to open these accounts for passing&posting is time consuming process so we can directly make adjustments to respective accounts.
Items appear in trail balance already completed & adjusted in all manner.
suppose outstanding salary given in trail balance means the same already adjusted in salary account. so no need for second adjustment and we can directly show as liability.
CAclubindia
