–Closing stock adjustment: Will be shown in asset side of balance sheet and will be shown in credit side of trading account.
–Goods lost by fire: Will be shown in credit side of trading account. Will be shown on debit side of profit and loss account.
–Outstanding expenses: Will be shown in debit side of profit and loss account. Will be shown in liabilities side of balance sheet.
–Prepaid expenses: Prepaid expenses shown in Asset side ( Dr Pre paid expenses) and Credit P&L Expenditure as they do not pertain to current year.
–Depreciation: It is fall in value of asset due to use or passage of time. Depreciation Dr. To asset account