Financial statements-4

Adjustment given are recorded once in trading or profit and loss account and again in balance sheet. It is so because of

• Matching principle

• Dual aspect principle

• Accrual concept

• Materiality concept

Indirect expenses are transferred to

• Trading account

• Profit and loss account

• Balance sheet

Wages and salaries account is shown in

• Trading account

• Profit and loss account

• Balance sheet

• Trading account and balance sheet

Closing stock is valued at

• Cost

• Net realizable value

• Cost or net realisable value whichever is more

• Cost or net realisable value whichever is less

Closing stock if given outside the trial balance is shown in

• Trading account and balance sheet

• Profit and loss account

• Profit and loss account and balance sheet

• Balance sheet

Prepaid expenses if given in trial balance is shown in

• Trading account as deduction from respective expenses

• Profit and loss account as deduction from respective expenses

• Balance sheet

Income received in advance is deducted from the income because of

• revenue recognition concept

• Accrual concept

• Matching concept

• Prudence concept