1. Periodical Matching Of Income With Expenses:

2. Adjustment For Determining Current Profits:

2.1 Closing Stocks:

2.2 Depreciation:

2.3 Outstanding Expenses:

2.4 Prepaid Expenses:

2.5 Income Received In Advance:

2.6 Accrued Income:

2.7 Bad Debts:

2.8 Reserve For Doubtful Debts (RDD):

2.9 Provision For Discount To Debtors (PDD):

2.10 Reserve For Discount From Creditors (RDC):

2.11 Goods Lost By Fire/Accident/Theft:

2.12 Goods Distributed As A Free Samples:

2.13 Goods Withdrawn By Owner:

2.14 Goods Sent On Sale Or Return:

3. Adjustment Entries For Rectification Of Errors:

3.1 Introduction:

3.2 Types:

3.3 Rectification Of Errors:

3.4 Examples:

4. Illustrations:

5. Exercises: