Summary Class 11 Accountancy Notes

Class XI




ACCOUNTANCY
FINANCIAL
STATEMENT With Adjustment.



PRASHANT KIRAD

, PRASHANT KIRAD

Ch: 18 FINANCIAL STATEMENT

FINANCIAL STATEMENT (FINAL A/C)
To accurately depict an enterprise's financial position, it is crucial to account for
all current year expenses and income, regardless of whether they have been paid
or received. This is achieved using the accrual basis of accounting, where
transactions are recorded when they occur, not when cash is exchanged.
In the double-entry accounting system, each transaction impacts at least two
accounts, maintaining the balance between debits and credits. Adjustments are
necessary to ensure that transactions that have not been fully recorded or need
to be matched with their related revenues or expenses are accounted for.
These adjustments ensure that financial statements reflect the enterprise's true
financial position and performance, providing stakeholders with reliable
information for decision-making.


2th
& 1
1th
d 1
ira
t K
han
s
Pra
# Adjustment → with treatment (in final A/C)
Exam mai aayega!
(EMA)
1. Closing Stock:




Asset Side in B/S