Documents

Adjustment

Categories
Published
of 39
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Related Documents
Share
Description
sss
Transcript
   Adjustments for Final Accounts  Prepayments and Accruals Expenses and revenues are not always paid or received on time. Cash paid and received in a year should not be entered directly into the profit and loss account of that year.  Adjustment should be made.  Prepaid expenses  those to be used in the following period but have been paid for in advance.  Accrued expenses  those which have been used up in the current year, but have not yet been paid for. Prepaid income  those to be earned in the following period but have been received in advance.  Accrued income  those which have been earned in the current period but have not yet been received.  Example 2 firms who pay rent for buildings in Hong Kong. The rent for each building is $1,200 a year. 1. Firm A paid $1,00 in the year. Own $200 for rent. 2. Firm B paid $1,300 in the year. $100 in advance for the following year.
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks