Page 228 - F3 -FA Integrated Workbook STUDENT 2018-19
P. 228
Chapter 17
Key issues
(1)
Ref = total of the debit and credit columns of the initial trial balance should be
equal
(2)
Ref = total of the debit and credit columns for adjustments made (e.g. accruals,
prepayments, depreciation charges etc) should be equal.
(3)
Ref = the initial totals of the debit and credit columns of the SP&L will not balance
– the difference will be the profit (or loss) for the accounting period. When this has
been determined and included, the final totals of the SP&L columns should agree.
(4)
Ref = if there is a higher value in the credit column (income), this will indicate a
profit for the accounting period, which will then be added to retained earnings in the
SOFP. If there is a loss for the accounting period, this will be indicated by a higher
value of debits (expenses) over credits (income) which will then be deducted from
retained earnings in the SOFP.
(5)
Ref = the initial totals of the debit and credit columns of the SOFP will not balance
– the difference will be the profit (or loss) for the accounting period. When this has
been determined and included, the final totals of the SOFP columns should agree.
222
