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Adjusted Trial Balance

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Accounting
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The purpose of adjusted trial balance is to list all the accounts of a company and balances after
adjustments have been made. Sometimes adjustments are made on the last day of the accounting
period which makes the balances up to date and the balances are according to the accrual
principles.
Accrual principles means identifying revenues and expenses, regardless of cash received or paid.
Here is the example
The supplies balance at beginning shows debit balance of 22807 whereas after adjustment it
shows credit balance of 18480, the balancing figure is 4327(22807-18480) will be shown on
debit side (as debit balance is more than credit balance) of adjusted trial balance.
Similarly prepaid rent on debit side shows 24000 and after adjustment it shows credit balance of
12000, so the balancing figure 12000 (24000-12000) is shown at debit side (debit > credit)

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The purpose of adjusted trial balance is to list all the accounts of a company and balances after adjustments have been made. Sometimes adjustments are made on the last day of the accounting period which makes the balances up to date and the balances are according to the accrual principles. Accrual ...
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