CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

All adjustments are reflected in the final accounts at ______ place to complete the double entry.

A
three
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
two
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
C
one
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
five
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is B two
Adjustments become necessary in respect of certain incomes received in advance and those which have accrued but are still to be received. Apart from these, there are certain items which are not recorded on day-to-day basis such as depreciation on fixed assets, interest on capital, etc. These are adjusted at the time of preparing financial statements.
The purpose of making various adjustments is to ensure that the final accounts reveal the true profit and loss and the true financial position of the business.
It may be noted that when we prepare the financial statements, we are provided with the trial balance and some other additional information in respect of the adjustments to be made. Like all other entries, even the adjustments are to be made with a dual effect and hence, they are reflected in final accounts at 2 places.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Fixed Capital and Working Capital
BUSINESS STUDIES
Watch in App
Join BYJU'S Learning Program
CrossIcon