Adjusting the trial balance!
basically I'm going to cut it down to the necessary accounts
we are given tehe unadjusted trial balance and we are required to create the adjusted trial balance. However, I am confused with the adjustments:
Other information: inventory, March 31/ 2009----30,000 (is this closing stock?)
given that the unadjusted trial balance figures at march 31/09 were:
inventory 01/04/08: 42,000
How do I adjust these?
first of all, the 'contra?' accounts that I used, like the additional entries included I nthe trial balance from this adjustment were: Closing stock (is this right or is it COGS?)
What I did: (my adjusted trial balance)
1/4/08 invntory = 30,000 Dr ( 42000 - 12,000)--since 30,000 was the final figure found at the end, I credited the difference (12000) from the 42000Dr
THEN:
closing stock or COGS?? : I Dr 12000? ( or do I Debit 30,000)
Is COGS included in the trial balance? Like is there a heading called COGS?