Acca financial Accounting (FA) Study Text ac ca (FA)

Preparing basic financial statements 

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KAPLAN PUBLISHING

 

 

Common accounting adjustments (recap) 

 

Examples of the more common accounting adjustments include:  

(i) 

Closing inventory (Chapter 6) 

Dr Inventory (SFP) 

Cr Cost of sales (P/L) 

(ii)  Depreciation charge for the year (Chapter 7) 

Dr Depreciation expense (P/L) 

Cr Accumulated depreciation (SFP) 

(iii)  Accruals (Chapter 10) 

Dr Expenses (P/L) 

Cr Accrual (Liability) (SFP) 

(iv)  Prepayments (Chapter 10) 

Dr Prepayment (Current Asset) (SFP) 

Cr Expenses (P/L) 

(v)  Irrecoverable debts (Chapter 11) 

Dr Irrecoverable debt expense (P/L) 

Cr Receivables (SFP) 

(vi)  Allowance for receivables (Chapter 11)