Adjustments at the End of an Accounting Period

3997 WordsSep 15, 200916 Pages
ADJUSTMENTS AT THE END OF AN ACCOUNTING PERIOD At the end of an accounting period, it is customary to close all the accounts, extract a trial balance, and then prepare the set of final accounts : the income statement and the balance sheet. However, there are a number of adjustments that may be required prior to the preparation of the final accounts. These include : (a) adjustments for owings and prepayments; ( b) adjustments for bad debts and provision for bad debts; and (c) adjustments for depreciation. (a) ADJUSTMENTS FOR OWINGS AND PREPAYMENTS At the end of the accounting period, the revenue earned must be matched against…show more content…
When making the adjustment, the first column of the income
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