The adjusted trial balance (as well as the unadjusted trial balance) must have the total amount of the debit balances equal to the total amount of credit balances. An adjusted trial balance is an internal document used by finance teams to record the transactions of each individual account throughout the course of an accounting cycle.
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It is to be noted that the first approach to the computation of the debtors turnover is superior. In case of the second approach the effect is that debtors turnover ratio is inflated. A high inventory ratio indicates efficient inventory management and efficiency of business operations. The term fictitious assets refer to preliminary expenses, debit
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For example, the amount payable to United Traders on the first day of the accounting period is recorded on the credit side of the United Traders Account. Think of retained earnings as savings, since it represents the total profits that have been saved and put aside (or « retained ») for future use. You should also include
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