Adjustments

In this lesson

1. 0:00 Trial balance adjustments overview
2. 0:28 Depreciation and PPE disposal
3. 1:38 Property revaluation accounting
4. 2:19 Receivables and irrecoverable debts
5. 3:17 Tax provisions and adjustments
6. 4:08 Accruals and prepayments explained

About this lesson

You'll work through depreciation and disposals of property, plant and equipment, revaluations, adjustments to receivables including irrecoverable debts and allowances, tax provisions, and accruals and prepayments. Each adjustment is broken down into clear journal entries so you understand exactly what to debit and credit, and when to use each one. This revision covers the adjustments that appear most frequently in FAA questions. Whether you're dealing with straight-line or reducing-balance depreciation, recording a PPE disposal, adjusting an allowance for receivables, or correcting an over or under provision for tax, you'll see the step-by-step process for each. The lesson also covers accrued expenses, accrued income, prepaid expenses, and prepaid income—all adjustments that commonly feature in financial statement preparation tasks. By mastering these adjustments, you'll be confident tackling any financial statements question that requires you to move from trial balance to final accounts. These are high-probability topics in your exam, so understanding the mechanics of each journal entry will save you time and help you avoid costly errors.

Duration: 6m