Question

Conclusion of adjustment of final accounts

Answer 1

Final accounts gives an idea about the profitability and financial position of a business to its management, owners, and other interested parties. All business transactions are first recorded in a journal. They are then transferred to a ledger and balanced. These final tallies are prepared for a specific period. 

every adjustment must have minimum two effects i.e. every debit must correspondence credit and every credit must have correspondence debit.


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