Multiple choice

Adjustments in the final acount are made either in trading A/c, profit and loss A/c and balance sheet because

  1. the principle of single entry has to be followed

  2. the principle of double entry has to be followed

  3. the principle of revenue and capital has to be followed

  4. none of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 This principle must be followed because the amount has to be debited at one place and credited at the another, otherwise the balance sheet would not tally.

Keep practicing — related questions