Class 12 Exam > Class 12 Questions > What are the adjustments while preparing inco...
Start Learning for Free
What are the adjustments while preparing income & expenditure a/c?
Verified Answer
What are the adjustments while preparing income & expenditure a/c?
If the points of difference between receipt and payment account and income and expenditure account have been understood, it should be a simple matter to convert a receipt and payment account into an income and expenditure account. As a general guide, the following steps should be carefully followed to convert the receipt and payment account to an income and expenditure account.
Exclude the opening cash and bank balance and similarly the closing cash and balances.
Eliminate all items of capital receipts and payments.
Exclude income of the previous period and any income received in advance.
Exclude expenditure of the previous or the coming period.
Include all incomes relating to the current period but not received as yet.
Include all expenditure relating to the current period but not paid as yet.
Provision for bad debts and depreciation on fixed assets should be made and charged to income and expenditure account.
This question is part of UPSC exam. View all Class 12 courses
|
|
Explore Courses for Class 12 exam
|
|
What are the adjustments while preparing income & expenditure a/c?
Question Description
What are the adjustments while preparing income & expenditure a/c? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about What are the adjustments while preparing income & expenditure a/c? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What are the adjustments while preparing income & expenditure a/c?.
What are the adjustments while preparing income & expenditure a/c? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about What are the adjustments while preparing income & expenditure a/c? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What are the adjustments while preparing income & expenditure a/c?.
Solutions for What are the adjustments while preparing income & expenditure a/c? in English & in Hindi are available as part of our courses for Class 12.
Download more important topics, notes, lectures and mock test series for Class 12 Exam by signing up for free.
Here you can find the meaning of What are the adjustments while preparing income & expenditure a/c? defined & explained in the simplest way possible. Besides giving the explanation of
What are the adjustments while preparing income & expenditure a/c?, a detailed solution for What are the adjustments while preparing income & expenditure a/c? has been provided alongside types of What are the adjustments while preparing income & expenditure a/c? theory, EduRev gives you an
ample number of questions to practice What are the adjustments while preparing income & expenditure a/c? tests, examples and also practice Class 12 tests.
|
|
Explore Courses for Class 12 exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup