Flashcards in Final Account Higher Level Adjustments Deck (21):
Where do adjustments always appear
Underneath the trial balance
Where do they appear
They appear twice
- once in trading p + l balance
- once in balance sheet
What is closing stock
Reduction in value of fixed assets
When you owe an expense at the end of a year
A expense due is...
Expense paid in advance
Expense paid is.....
A current asset
Income due is a...
Income repaid is a...
What is the basic rule
Add due, subtract prepaid
When you owe someone something at the end of the year
To show revenue and expenses directly to the trade e.g. Care dealer buys and sells cars.
Profit and loss account
All other income and expenditure
Profit and loss appropriation
This shows how we divide up the net profit (how much money is left to finance the business)
List of all assets and liability in the business and how they paid for them
Where does carriage outwards go
What are the heading for the balance sheet
What is in current asset
What is in current liabilities