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Chapter 15

Adjustments to the initial trial balance

As well as adjusting the trial balance figures for any errors identified there are also a
number of common adjustments made at the end of the accounting period. These
include:

 closing inventory

 depreciation for the year

 accruals and prepayments

 irrecoverable debts and allowances for receivables

 income tax

 provisions and contingent liabilities, and

 events after the reporting period.

These adjustments need to be processed before the financial
statements can be prepared.

Tutor notes guidance – discussion points

Take students through a reminder of the common adjustment debit & credits
from previous chapters.

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