3. END-OF PERIOD ADJUSTMENTS End-of-period-adjustments in accounting are journal entries made to the accounts of a business prior to the preparation and distribution of the financial statements for a given accounting period. End-of-period adjustments ensure that these financial statements reflect the true financial position and performance of a business by allocating to the appropriate period the income earned and expenses incurred. End-of-period adjustments are also known as year-end-adjustments, adjusting-journal-entries and balance-day-adjustments. End-of-period-adjustments apply the matching principle of accounting which include accruals, deferrals and asset value adjustments. 1. Counting and Controlling the Assets(Inventory Control) 2. Accruals VAT and other accounts 3. Stock and Cost of Good Sold Valuation 4. Depreciation 1. Counting and Controlling the Assets Ex1. At the end of month, there are 305.380TL in the case of firm. there is no responsible person for this loss. Ex2. At the end of month, an office furniture was lost. Cost of furniture is 1.000TL. the asset will be paid within 2 months by the personnel who were misappropriated. 2. VAT Accruals - 191. Ded. VAT , 391. VAT Calc 190 DEFFERED VAT - 391. VAT Calc, 191. Ded. VAT 360 TAX AND FUNDS PAYABLE - 191. Ded. VAT =391. VAT Calc Ex1. VAT accounts of SD Co. Are below. Make VAT adjustments D 30.000191. C D 391.25.000 3. Stock and Cost of Good Sold Valuation 2 methods stock valuation 1. Periodic Inventory Method 2. Perpetual Inventory Method Ex1. At the end of this month, there are 380.000TL commercial goods in stocks. Calculate the cost of good sold based on periodic inventory method. 4. Depreciation Depreciation is the process of deducting the total cost of something expensive you bought for your. business. But instead of doing it all in one tax year, you write off parts of it over time. When you depreciate assets, you can plan how much monex is written off each year, gixing you more control over your finances. Ex1. Calculate depreciation expense monthly. Useful life of Buildings 50 years; motor vehicles, machineries and Furniture\&Fixtures 10 years. END-OF-PERIOD ADJUSTMENTS