Question on: JAMB Accounting - 2018

Why are adjustments in the profit and loss account necessary?

A
To cover some expenses of the following year
B
To show the provisions made during the year
C
To show the total expenses paid and income received during the year
D
To ascertain the actual expenses incurred and income earned during the year
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Correct Option: D

When preparing profit and loss account, expenses and income relating to only the trading period are taken to the trading profit and loss account.

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