Page 226 - F3 -FA Integrated Workbook STUDENT 2018-19

Chapter 17

Adjustments to the initial trial balance

2.1 Introduction

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
adjustments typically include accounting for:

 closing inventory

 depreciation charges 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.

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