What Should You Expect From This Lesson?

Students understand how to incorporate year-end adjustments into the Final Statements. Show the various adjustments as workings. Include these adjustments within the Final Statements

How To Carry Out This Lesson At Home:

Read well the students’ notes to understand how to do the necessary adjustments to financial statements. Make sure that after reading the notes you are able to:
β€’ Adjust expense accounts for accruals and prepayments.
β€’ Adjust revenue accounts for amounts owing and amounts received in advance.
β€’ Incorporate depreciation calculations into the accounting records.
β€’ Make the necessary entries to record an allowance for doubtful debts in the books.
β€’ Ascertain the amounts of expense and revenue items to be shown in the Statement of Profit or Loss after making adjustments for accruals and prepayments, depreciation and allowance for doubtful debts.
β€’ Incorporate closing balances of expenses and revenue accounts, allowance for depreciation account and allowance for doubtful debts account in the Statement of Financial Position.
Work out the activity which is included in the students’ notes and correct your work by referring to the teachers’ notes.