Adjustment Entry :
To satisfy the principal of matching cost and revenue, amount of every expenses and revenue should pertain to the period for which accounts are being prepared.there can be two situations :
A. Amount has been received or paid which belongs to more than one accounting year.
B. Amount of expense or revenue for the current year stands due but are not paid or received.
To be continue......
To satisfy the principal of matching cost and revenue, amount of every expenses and revenue should pertain to the period for which accounts are being prepared.there can be two situations :
A. Amount has been received or paid which belongs to more than one accounting year.
B. Amount of expense or revenue for the current year stands due but are not paid or received.
To be continue......
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