My Total Assets Account Balance Doesn't Equal My Total Liabiliteis And Owners Equity.

My Total Assets Account Balance Doesn't Equal My Total Liabiliteis And Owners Equity.
Does your Trial balance pan out?

Someone is the manager of a medium size company. A few years ago, the manager persuaded the owner to base a part of her compensation on the net income the company earns each year. Each December she estimates year-end financial figures in anticipation of the bonus she will receive. If the bonus is not as high as she would like, she offers several recommendations to the accountant for the year-end adjustments. One of her favorite recommendations is for the controller to reduce the estimate of doubtful accounts. What effects does lowering the estimate for doubtful accounts have on the income statement and balance sheet?

Preparing a balance sheet one needs to have the following basics

1. pass the journal entry
2. post the entires into the ledgers
3 . Take the brought forward balances to the trial balnce
4 . Finally prepare the fnal a/cs.
5. items listing in trial balance is either posted to income staement or taken to balance sheet.
6. however if any entry is missed then such adjustments have to be taken into accounts and finally the balnce sheet does go to be equal.

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