hmmm now i got your point. wo adjust is lie kr rha hai ku k TPL ko true and fair view dene k lie..
lets suppose ap ne 2 years ka rent pay kia hai advance me. agr wo at the year end adjust nh karainge tou usi ek year me 2 years ka rent exp include hojaega jo hamare profit ko kam kr dega.. let supose humara GP hai 50000. 60000 of 2 years respectively.
2 years ka rent hai suppose 24000.. means ek year ka 12000.
ab agr hum without adjusting year one me sara rent dal dain tou senario aisa hoga k
year 1
GP=50000
rent= 24000
NP=26000.
aur
year 2
GP=60000
rent exp=0
NP=60000.
adjustment na krne se hum year 1 k profit underestimate kr rhe hain aur year 2 k profits ovr estimate..
so adjustment k bad humara 2 years ka TPL kuch is tarha show hoga
year 1
GP=50000
rent= 12000
NP=38000.
aur
year 2
GP=60000
rent exp=12000
NP=48000.

hope mene apki problem ko sahi identify kia ho..
agr nh tou let me know.
regards,
Rohail