| | Adjustment | 1st Effect | 2nd Effect | 3rd Effect |
| 1 | Closing Stock | Trading A/c – Cr Side | Asset | |
| 2 | Outstanding Expenses | Add to Expense | Liability | |
| 3 | Prepaid Expenses | Less from Expense | Asset | |
| 4 | Income received in advance (Pre-received Income) | Less from Income | Liability | |
| 5 | Income receivable | Add to Income | Asset | |
| 6 | Bad debts (Additional or New Bad debts) | Add to Old R.D.D or P&L A/c Dr Side. | Less from Debtor | |
| 7 | Provision for Doubtful Debts (Reserve for Doubtful debts, new R.D.D.) | Add to Old R.D.D or P&L A/c Dr Side. | Less from Debtor | |
| 8 | Reserve for discount on Debtors | P&L A/c Dr Side | Less from Debtor | |
| 9 | Depreciation | P&L A/c Dr Side | Less from Asset | |
| 10 | i) Interest on capital | P&L A/c Dr Side | Capital A/c Cr Side | |
| | ii) Interest on Drawings | P&L A/c Cr Side | Capital A/c Dr Side | |
| | iii) Interest on loan taken | P&L A/c Dr Side | Add to Loan | |
| 11 | Interest on investment and on loan given | P&L A/c Cr Side | Add to Investment/Loan Given | |
| 12 | i) Insured goods destroyed by fire/accident (Full claim ) | Trading A/c – Cr Side | Asset | |
| | ii) Insured goods destroyed by fire/accident (Partial Claim) | Trading A/c – Cr Side (Value of goods Destroyed) | P&L A/c Dr Side (Loss Amout) | Asset Side (Claim Admited) |
| | iii) Uninsured goods destroyed by fire/ accident | Trading A/c – Cr Side | P&L A/c Dr Side | |
| 13 | Goods stolen | Trading A/c – Cr Side | P&L A/c Dr Side | |
| 14 | Goods distributed as free samples | Trading A/c – Cr Side | P&L A/c Dr Side (Advertisement) | |
| 15 | Goods withdrawn by Partners for personal use | Trading A/c – Cr Side | Capital A/c – Dr Side | |
| 16 | i) Unrecorded Purchases | Add to Purchase | Add to Creditor | |
| | ii) Unrecorded Sales | Add to Sales | Add to Debtors | |
| 17 | i) Capital Expenditure included in Revenue Expenditure | Less from Revenue Expenditure | Add to Capital Expenditure (Asset) | |
| | ii) Revenue Expenditure included in Capital Expenditure | Less from Capital Expenditure (Asset) | Add to Revenue Expenditure | |
| 18 | Bills Receivable dishonored | Less from Bill Receivable | Add to Debtors | |
| 19 | Bills Payable Dishonored | Less from Bills Payable | Add to Creditor | |
| 20 | Deferred Expenses of Advertisement paid for 5 years | Less from Advertisement | Asset side as Prepaid Advertisement | |
| 21 | Revenue Receipts included in Capital Receipts e.g. sale of goods included in sale of Furniture | Add to sales | Less from Asset | |
| 22 | Commission to partners as percentage of Gross Profit/sales. | P&L A/c Dr Side | Capital A/c Cr Side | |
