Tips to keep in mind while making financial statements, Accounting Basics

Tips to be keep in mind while preparing the Financial Statements:

1. Objects given in the trial balance must be revealed only once as it is assumed that they are already adjusted once

2. Objects known in the adjustments have to be accounted for twice.

3. Some dissimilarity in the trial balance have to be transferred to suspense account. If the balance is small on the debit side, the difference must be shown on the asset side of the balance sheet and if the balance is small on the credit side, it have to be shown on the liabilities side of the balance sheet.

4. Where required, working notes have to be maintained for accuracy and clarity.

5. Several of the adjustments are exclusive, such as distribution of free example.

Posted Date: 10/15/2012 5:43:18 AM | Location : United States







Related Discussions:- Tips to keep in mind while making financial statements, Assignment Help, Ask Question on Tips to keep in mind while making financial statements, Get Answer, Expert's Help, Tips to keep in mind while making financial statements Discussions

Write discussion on Tips to keep in mind while making financial statements
Your posts are moderated
Related Questions
hi I was wondering you use provide the solution of the back of the book for advance accounting theory by Craig Deegan 4 edition ISBN - 13: 978-007101314 - 7 ISBN - 10: 007101314

From the following details, prepare a balance sheet acid test ratio = 2.5 current ratio = 1.5 net working capital = 10,00,000 fixed assets =? Share capital =? Proprietary ratio =

Q. Show Tax benefits of LIFO? Tax benefits of LIFO The LIFO method outcomes in the lowest taxable income and thus the lowest income taxes when prices are rising. The Internal R

Liquidity refers to a company's cash position, availability of resources to meet short-term cash requirements, and overall ability to obtain cash in the normal course of business.

Question: Artarmon Ltd uses a job-order costing system and a predetermined overhead rate based on direct labour cost. Estimated manufacturing overheads for the coming year were

Q. What do you mean by Net sales? We demonstrate a condensed income statement to emphasize its major divisions. Next, we explain the more complete income statement actually pre

1. My accountant has told me that my business made a profit of £100,000 last year. However over the same time period my bank balance has decreased and not increased as I expected.

A company’s sales volume averages 4,000 units per year.  Recently, its main competitor reduced the price of its product to $48.  The company expects sales to drop dramatically

Dunmore Coal and Iron purchased $1,000,000 in corporate bonds and 500,000 shares of common stock in its competitor, Olyphant Iron. Dunmore plans to hold onto the bonds until the ma

the guinegog is a trader in portable cd-man. His budgeted output is 5000 units per quarter. The following data was available for the year 1998: Direct labour @ $6 Direct material @