Question

Paul has just finished entering adjustments to the trial balance he prepared for the current accounting period. What is the most likely explanation for Paul making these adjustments?

Answer 1

He had to account for the accruals and the prepayments during the period

Explanation:

When the adjustments are made and they are posted in the ledger then it is called as the trail adjustments and the second trail balance is prepared and it is given in the accounting cycle

After all the adjustments are made they are entered in the books of the company and the main purpose of them is to check the equities between the debit and the credit