Adjustments :

Some important and common items, which need to be adjusted at the time of preparing the final accounts are discussed below.
1. Closing stock
2. Outstanding expenses
3. Prepaid Expenses
4. Accrued incomes
5. Incomes received in advance
6. Interest on capital

7. Interest on drawings

8. Interest on loan

9. Interest on investment

10. Depreciation

11. Bad Debts

12. Provision for bad and doubtful debts

13. Provision for discount on debtors

14. Provision for discount on creditors.

Note : All adjustments are given outside the trial balance.