QS Final Accounts for Quantity SurveyorFull description
Full description
Full description
QS Final Accounts for Quantity SurveyorFull description
Full description
Adjustments of Final accounts - full detail in table form >> SEPTEMBER 21, 2008
There are many adjustment because earlier we have not passed any journal entry , so at the time of making final account we have to adjust them .
Name of items
Adjustment entry
1. Closing stock
Closing stock account dr. xxx To trading account xxx Expenses account dr. xxx To outstanding exp. xxx
2. outstanding expenses or expenses payable or expenses due but not paid
3. advance expenses
4. income receivable
5. income received in advance
6 Goods use
Advance expenses a/c dr. xxx To expenses account xxx Outstanding income account dr. xxx To income account xxx Income account dr. xxx To advance income account xxx Drawing
Effect on trading and profit and loss account Closing stock will write in the credit side of trading account Outstanding expenses will add in expenses . if it is direct it will go to trading
Effect on balance sheet It will show as asset in the final account
It will be the current liability so it will go to the liability side of balance sheet.
account’s debit
side , if it is indirect nature then it will go to the debit side of profit and loss account It will deduct from respective expenses paid .
It will be the current asset so it will go to assets side of balance sheet
It will add in the income and go to credit side of profit and loss account
It will show as asset in the assets side of balance sheet
It will deduct from the income received
It will shown as liability in the liabilities side of balance sheet
It will deduct
It will deduct from
for personal use
7. Destroyed of goods
account dr. xxx To purchase account
loss by fire or accident account Dr. xxx To trading If there is no insurance It will also go to profit and loss account Profit and loss account dr. xxx To loss by fire / accident 8. Depreciation Depreciation account dr. xxx To respective asset account xxxx 9. provisional If you have for doubtful make any debts provision for doubt ful debts the its journal entry will passed Provision for doubtful debt account dr. xxx To Bad debts account xxx ( New bad debts which is not shown in trial balance will transfer to provision for
from purchase in the debit side of trading account = purchase – drawing in goods It will shown in credit side of trading account And also in profit
capital in the liabilities side of balance sheet =capital- drawing in goods It will not go to balance sheet
and loss account’s
debit side
It will go to the debit side of profit and loss account
It will deduct from fixed asset . Because it decrease the value of asset =fixed asset depreciation Net value of Deduct from debtor provision for = debtor – new bad doubtful debt debts – this year account transfer to provision or closing profit and loss balance of provision account’s debit for bad debts side =total bad debt + closing balance or provision of doubtful debt or this year provision - opening balance of provision for doubtful debts
10. Commission to manager
doubtful debt account ) Commission It will shown in account dr. the debit side of xxx profit and loss To account as o/s outstanding commission to commission manager If it charge on the amount after charging such commission then we will calculate = profit before commission X Rate/ 100+rate