4:45 AM
imran ali
The arrangement of assets and liabilities in the balance sheet is known as marshalling of assets and liabilities. The marshalling of assets and liabilities can be done either in order of liquidity or in order of permanency.
In order of liquidity, liquid assets and current liabilities are shown first in the balance sheet. But in order of permanency, those assets and liabilities which are permanent nature are shown first.
In order of liquidity, liquid assets and current liabilities are shown first in the balance sheet. But in order of permanency, those assets and liabilities which are permanent nature are shown first.
List of Important Adjustments
- Outstanding Expenses
- Prepaid Expenses
- Accrued Income
- Advance Income
- Closing Stock
- Depreciation on Fixed Assets
- Interest on Capital
- Interest on Drawing
- Bad Debts
- Provision for Bad Debts
- Provision for Discount on Debtors
- Provision for Discount on Creditors
- Goods Lost by Accident
- Drawing in Goods
- Goods used in Business
- Interest on Loan
- Commission Payable to Managers
- Taxation
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