Adjustments On Balance Date

1. The balance date is the last of a period of accounting where all ledger accounts are balanced and closed and therefore the Trial Balance is provided.
2. The information in the Trial Balance only is not sufficient to prepare the Closing Account and Balance Sheet. This is because there are adjustments that need to be made to match the cost of an accounting period with the outcome for a more accurate calculation of profits.
3. The adjustments to be made include :
(a) depreciation and depreciation provisions
(b) bad debts and allowance for doubtful debts
(c) previous expenditure and accrued past and accrued results