Adjustments can be defined as the modification of accounts during the end of the accounting period. When there are events that affect the related period of accounts but are not recorded in the books and are left out, then this should be incorporated in the books before the final accounts are prepared. This is done by adjusting entries in the journal proper and is thus called adjustment entries. Some of the examples of the adjustment entries are rent outstanding, prepaid expenses and any commission that is received in advance.