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Former Member
Aug 24, 2008 at 03:20 AM

f.05 adjustment account

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hi all,

i would like to know this.

when run F.05, if the unrealised is gain then the entry is

dr receivable adjustment account

cr unrealised forex gain

when it is a loss then

dr unrealised forex loss

cr payable adjustment account

1) may i know why use adjustment account and why it is called adjustment account?

2) p&l unrealised gain or loss account are adjustment account also?

3) people say adjustment account for better presentation of the fin statement. what does it mean?

thanks