It balances the recording from general journal down to profit and loss account.

Application is recorded to match balances in all relevant general journal and general ledge

the journal account

Accounting -> Topics -> Application Application Recording General journal 30 Jun. Depreciation of vehicles $7 125 Accumulated depreciation of vehicles $7 125 Vehicles depreciated at 15% p.a. 30 Jun. Profit and Loss a/c 7 125 Depreciation of vehicles 7 125 Depreciation posted to the Profit and Loss a/c General ledger Depreciation of vehicles 30 Jun. Accumulated depreciation of vehicles 7 125 30 Jun. Profit and Loss a/c 7 125 Accumulated depreciation of vehicles 1 Jan. Balance 10 000 30 Jun. Balance 17 125 30 Jun. Depreciation of vehicles 7 125 17 125 17 125 Profit and Loss a/c 30 Jun. Depreciation of vehicles 7 125

Presenting transactions systematically under generally accepted accounting principles can be helpful to make interpretation about business activities of the organization.

I would think that when you get so many vehicles you would already have in mind that they will or won't all sell.

What is an application of balance day adjustments?

clear

Assimilated.presentation of accounts with generally accepted accounting principles makes it easier for the understanding of the business possition of an organisation.

it provides a demonstration of how to do the recordings into the financial statements inline with the prescriptions of the conceptual framework