Ledgers will take many different forms in practice. They may be manual books or may be computerised.
Before preparation of the profit and loss account and balance sheet, several adjustments will be required.
These include:
These are entered in the books as journal entries.
In this lesson we considered the general recording of adjustments, including the correction of errors. Other special adjustments will be considered in later lessons.
Errors can result in:
A trial balance still balancing
Or a trial balance out of balance:
Capital expenditure
Revenue expenditure