Question

While preparing final account, prepaid expenses,
Depreciation and closing stock are treated how when they
are:
a) Given in trial balance.
b) Given in adjustment.​

Answer 1

Explanation:

Closing Stock --- Current Assets A/c. Dr

to Trading Ac

Depreciation - Depreciation A/c ( in P& L ) Dr

to Fixed Asset ( Balance Sheet)

this will be Journal Entries irrespective of whether its given in trial balance or adjustment

for prepaid expenses Debit current year amount in P& L and next year in current asset