MAA103 Lecture Notes - Lecture 8: Net Profit, Accrual, Trial Balance
15 Aug 2018
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Document Summary
Trial balance proves the mathematical equality of debits and credits after posting all journal entries. Balance day adjustments are journal entries which must be made at the end of the financial period. Required to ensure: revenues are recorded when earned against; Expenses that have been incurred in accounting period financial statements are correct portrayal of financial performance and position. Expenses that have been paid in advance of. Cash that is received before revenue is earned. Revenue that has been earned but not yet. On 11 feb 2016, softbyte received ,700 cash from its customers for services to be delivered in march. y r t n. Unearned revenue 2,700 (recording the initial receipt of cash) E (revenue has now been earned) g n i t s u d. By the end of jan 2016, softbyte consumed worth of office supplies.
