Illustration
You'll learn how to bring together all the adjustments and workings needed to prepare complete financial statements from a trial balance.
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In this lesson
- 0:00 Trial balance overview and adjustments needed
- 3:00 Calculating cost of sales
- 3:40 Depreciation on non-current assets
- 4:43 Allowance for receivables and bad debts
- 6:10 Loan interest and finance costs
- 6:55 Accruals for expenses and prepayments
- 9:13 Preparing admin expenses total
- 10:04 Statement of profit and loss
- 11:02 Statement of financial position
About this lesson
This comprehensive illustration walks you through a realistic scenario with multiple adjustments—including depreciation, allowances for receivables, accruals, and tax provisions—showing exactly how each one flows into the statement of profit and loss and statement of financial position. You'll see the practical order of working: calculating cost of sales, handling non-current assets, adjusting receivables, accounting for finance costs, and capturing all accruals before finalising your statements. By the end, you'll understand how trial balance adjustments systematically build into polished financial documents, giving you the confidence to tackle similar questions in your exams.
Duration: 14m
Transcript
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