Meaning of adjustment account | Babel Free

Definitions

An account used in double-entry bookkeeping to represent the other side of adjustments that need to be made.

Examples

“lt is also relevant to mention that there would be no effect on the profit of the Corporation even if the liability was written back through 'prior period adjustment account'.”

“[…] your adjustment account should be an expense account for reducing inventory and an income account when increasing inventory.”

“The impact will be disclosed by establishment of an inventory adjustment account and a cost of goods sold adjustment account at the cost basis of the merchandise sold.”

“However, if goods are returned by branch to HO, the loading is cancelled by debit to adjustment account.”

CEFR level