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What is a past adjustment? For …

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What is a past adjustment? For what purpose it is used?

Posted by Rosmin James 5 years, 9 months ago

CBSE > Class 12 > Accountancy

2 answers

Lovely Dhawan 5 years, 9 months ago

Past adjustment is adjustment in closed accounts

Braj Prasad 5 years, 9 months ago

When profits are distributed without considering any exp or income we need to rectify the profit distribution by passing single journal entry then it is termed as past adjustment. It is needed to correct the distribution of profit without affecting all books of accouunt

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