Year-end adjustments checklist
1 min read
Updated 03 Oct 2026
3 views
AI summary
Everything to post and check before finalising the year's accounts.
3 sections 8 steps
Adjustment entries
- Closing stock: count and value at cost or NRV.
- Depreciation on all fixed assets.
- Outstanding expenses: salary, rent, electricity, audit fees, interest.
- Prepaid expenses: insurance, AMC, subscriptions.
- Accrued income: interest on FDs, commission earned.
- Provisions: income tax, bonus, gratuity, doubtful debts.
- Bad debts to write off.
- Interest on capital / drawings / partner remuneration (firms).
Reconciliations
- Bank reconciliation for every account (Bank Reco, Alt+B).
- Cash physically counted and matched.
- Customer and supplier balance confirmations.
- GST: books vs GSTR-1, GSTR-2B and GSTR-3B for the year; TDS: books vs Form 26AS / AIS.
- Loan statements vs loan ledgers.
Final checks
- Suspense account is zero.
- No negative cash or unexplained debit balances in creditors.
- Trial Balance tallies; P&L and Balance Sheet reviewed.
- Lock the year with Books Freeze / Lock Date (F12).
PreviousProvisions and contingent liabilities Next in Financial Statements Trial Balance: what it proves and what it doesn't
Was this guide helpful?