Debit and credit columns are shown side by side. Highlighted rows have changed; a dash means zero. The final column shows where each adjusted balance belongs.
| Account | Unadjusted Dr | Unadjusted Cr | Adjusted Dr | Adjusted Cr | Destination |
|---|
A balance on a temporary suspense or disposal clearing account should be cleared before final statements are prepared. “Other ledger balances (illustrative)” is only a balancing figure, so no genuine destination can be assigned to it.
These are adjustments only; already-recorded cash receipts and payments are not posted again.
| Debit account | Dr goes to | Credit account | Cr goes to | Amount |
|---|
Where adjusted balances are reported
This is an educational extract of the adjusted accounts, not a complete set of financial statements. Debits and credits are displayed in their original ledger direction.
Profit & Loss account
| Account | Balance |
|---|
Balance Sheet
| Account | Balance |
|---|
Expenses generally appear as P&L debits and income or gains as P&L credits. Assets generally appear as Balance Sheet debits and liabilities as credits. Accumulated depreciation and doubtful debt allowances are credit balances deducted from assets. The illustrative balancing figure is deliberately excluded. The current-year profit would normally feed into equity when full financial statements are prepared.
Important exam notes
Each category is a separate, illustrative self-balancing trial balance, rather than a single company's complete accounts. The automatically calculated “Other ledger balances (illustrative)” line represents accounts omitted from the example; it is not a journal adjustment or a figure for a real business. In real questions, first establish which entries have already been posted.
For asset disposals, the bank already contains the sale proceeds in the unadjusted trial balance. The receipt was credited to a temporary disposal proceeds account; the adjustments transfer that balance and clear the asset's cost and accumulated depreciation.
For the four timing adjustments, the examples assume the opening balance is fully used, settled, collected or earned during the year. For depreciation, the charge is limited to the remaining depreciable value. The calculations are educational examples, not a substitute for reading the particular accounting policy and question instructions.