8.5 ADJUSTMENTS GIEN IN TRAIL BALANCE
In actual practice all adjustment items with the exception of closing stock are invariably incorporated in the Trial Balance before prephg the final. accounts. The Trial Balance so prepared is called 'Final Trial Balance' or 'Adjusted Trial Balance'.
Iock at Chart 8.1 and note how each item of ADJUSTMENTS is treated in find account.
(i) if it given outside the Trial Balance, and (ii) if it appears in the Traial Balanc iteslf.
Chart 8.1
Treatment of Adjustment Item in Final Account
Illstration 8
From the following Trial Balance of Pitam Stores prepare Trading and Profit and Loss
Account for the year ended December 31,1987 and the Balance Sheet as on that date.
Additional Infromation
The value of stock on December 31,1987 was Rs. 40,000
Tralng and Profit and Lam Account
for the year endd December 31, 1987
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