Name of items
|
Adjustment entry
|
Effect on trading and profit and loss account
|
Effect on balance sheet
|
1. Closing stock
|
Closing stock account dr. xxx
To trading account xxx
|
Closing stock will write in the credit side of trading account
|
It will show as asset in the final account
|
2. outstanding expenses or expenses payable or expenses due but not paid
|
Expenses account dr. xxx
To outstanding exp. xxx
|
Outstanding expenses will add in expenses . if it is direct it will go to trading account’s debit side , if it is indirect nature then it will go to the debit side of profit and loss account
|
It will be the current liability so it will go to the liability side of balance sheet.
|
3. advance expenses
|
Advance expenses a/c dr. xxx
To expenses account xxx
|
It will deduct from respective expenses paid .
|
It will be the current asset so it will go to assets side of balance sheet
|
4. income receivable
|
Outstanding income account dr. xxx
To income account xxx
|
It will add in the income and go to credit side of profit and loss account
|
It will show as asset in the assets side of balance sheet
|
5. income received in advance
|
Income account dr. xxx
To advance income account xxx
|
It will deduct from the income received
|
It will shown as liability in the liabilities side of balance sheet
|
6 Goods use for personal use
|
Drawing account dr. xxx
To purchase account
|
It will deduct from purchase in the debit side of trading account
= purchase –drawing in goods
|
It will deduct from capital in the liabilities side of balance sheet
=capital- drawing in goods
|
7. Destroyed of goods
|
loss by fire or accident account Dr. xxx
To trading
If there is no insurance
It will also go to profit and loss account
Profit and loss account dr. xxx
To loss by fire / accident
|
It will shown in credit side of trading account
And also in profit and loss account’s debit side
|
It will not go to balance sheet
|
8. Depreciation
|
Depreciation account dr. xxx
To respective asset account xxxx
|
It will go to the debit side of profit and loss account
|
It will deduct from fixed asset . Because it decrease the value of asset
=fixed asset - depreciation
|
9. provisional for doubtful debts
|
If you have make any provision for doubt ful debts the its journal entry will passed
Provision for doubtful debt account dr. xxx
To Bad debts account xxx
( New bad debts which is not shown in trial balance will transfer to provision for doubtful debt account )
|
Net value of provision for doubtful debt account transfer to profit and loss account’s debit side
=total bad debt + closing balance or provision of doubtful debt or this year provision - opening balance of provision for doubtful debts
|
Deduct from debtor
= debtor – new bad debts – this year provision or closing balance of provision for bad debts
|
10. Commission to manager
|
Commission account dr. xxx
To outstanding commission
|
It will shown in the debit side of profit and loss account as o/s commission to manager
If it charge on the amount after charging such commission then we will calculate
= profit before commission X Rate/ 100+rate
|
It will shown as liability
|
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There are many adjustment because earlier we have not passed any journal entry , so at the time of making final account we have to adjust them .
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Buy back of shares journal entries
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- access
- account
- accountant
- Accounting
- accounting definitions
- accounting ebook
- Accounting education
- Accounting Education Ads Help
- accounting procedure
- accounting process outsourcing
- Accounting Software
- advance
- advertising
- africa
- Amalgamation
- amendments
- Amortization
- announcements
- Annuity
- assets
- audit
- auditing
- Australia
- B.Com.
- balance sheet
- bank
- Bank reconciliation
- banking
- basic accounting
- BBA
- benefits
- best
- bill
- black money
- blog
- bloggers
- book keeping
- bookkeeping
- Branch Accounting - full tutorial
- budget
- Budget variance
- business
- businessman
- CA
- calculator
- canada
- capital
- capital budgeting
- career
- cash
- cash book
- cash flow statement
- Chiense
- children
- china
- class
- coaching
- coins
- college
- commerce
- commerce students
- company
- computer
- computer accounting
- conference
- Contact vinod kumar
- Control Your Spending
- corporate accounting
- cost
- cost accounting
- cost center
- cost centre
- CPA
- credit
- credit card
- cs
- currency
- data
- Debit and credit
- debit cards
- debt
- debtor
- degree
- depletion
- depreciation
- Diwali Messages
- documents
- dollar
- domain
- Downloads
- Dubai
- e-accounting
- earning
- education
- Education Loans
- employee
- EPF
- ERP
- euromoney
- examination
- excel
- excise duty
- expenses
- factor of loan
- fans
- feature
- fifo
- FII
- fiji
- finacle
- finance
- Finance Journal Entries
- Financial
- financial accounting
- Financial Statements
- fire insurance
- flickr
- flow
- forensic
- forex
- formula
- france
- fraud
- free
- fun
- function
- fund
- GAAP
- GDP
- gdr
- germany
- gold
- goodwill
- goodwill accounting
- google apps
- google apps
- google base
- google buzz
- google calendar
- Google docs
- google finance
- google fusion tables
- google talk
- govt.
- GST
- guide
- health
- Hindi
- Hindi Language
- history
- holding company
- How to treat FBT in Tally 9
- HRA
- ICAI
- ICAWI
- ICICI Bank
- IFRS
- income
- income statement
- Income Tax
- India
- indian railway
- Indonesia
- inflation
- inflation accounting
- infographics
- information
- inspiration
- insurance
- insurance accounting
- Intangible
- interest
- international
- Internet
- Introduction of Tally 9
- inventory
- investment
- investment in Shares
- invoice
- IT
- Japan
- Job costing
- journal entries
- Journal Entries eBook Help
- Kalculate
- keyboard
- kuwait
- laptop
- law
- LBT
- learning
- lease
- lecture
- ledger
- leducation
- Leverage Analysis
- liabilities
- lifo
- loan
- logical point
- loss
- loss of profit
- M.Com.
- m.phil
- malaysia
- management accounting
- manual accounting
- manufacturing account
- market
- marketing
- mastercard
- material
- MBA
- MCA
- media
- migration
- mobile
- money
- ms word
- ms. excel
- multi currency in tally 9
- Multicurrency Accounting
- mutual fund
- national security
- new and sacrifice ratio
- new york times
- new zealand
- news
- NGO
- nonprofit-accounting
- North Georgia Mountains
- Notification
- NPV
- NSE
- odbc
- office
- oman
- online application
- online accounting
- Online Accounting Course
- otcei
- pakistan
- parents
- Partnership
- pay pal
- Personal Finance
- pie chart
- pie chart of income
- pnb
- podcast
- ppf
- presentation
- price
- privacy policy
- prof. vinod kumar
- profit
- profit and loss account
- project management
- provision
- purchase
- puzzles
- quickbooks
- Quote
- quotes
- quotes of svtuition
- rating agency
- ratio analysis
- RBI
- readers
- real estate
- rectification of errors
- remote control
- reports
- reserves
- responsibility accounting
- retirement
- revenue
- Revenue reserves
- review
- risk
- rupees
- salary
- sale
- SAP
- saudi arabia
- saving
- sbi
- scholarship
- school
- SEBI
- security
- service tax
- share
- share trading
- Shares
- shri lanka
- singapore
- sms
- social accounting
- society
- solution
- South Africa
- stock
- stock exchange
- structure
- student
- students
- study
- subsidiary company
- svtuition
- swiss bank
- tally
- tally 9
- Tally 7.2
- Tally 9
- Tally.ERP 9
- TallyPrime
- tanzania
- tax
- Tax Accounting
- TDS
- teacher
- teaching
- technology
- test
- testimonial
- testimonials
- thailand
- tips
- trading
- trading on equity
- transaction
- trend
- trial balance
- truthfulness
- tuition
- UAE
- UGC - NET Commerce
- UK
- United Arab Emirates
- university
- usa
- valuation
- VAT
- Video
- Voucher and vouching
- Wealth
- wikipedia
- working capital
- youtube
thaunk u
ReplyDeletethank : )
ReplyDeletei'm very thankful to you.
ReplyDeleteI didn't attend my period of adjustments so i had no concept about these strange things.
These looked like an evil face before.
Now i've an evil face for adjustments.
thanks Bro.
ReplyDeleteits is really simple way to understand and for remember also
thanks Sir ....
ReplyDeletefor ur kind info
thnks
ReplyDeletethanks for providing us these information
ReplyDeletethnks sir
ReplyDeleteThanks Sir
ReplyDeletethnx sir.
ReplyDeletethank u very much sir.
ReplyDeletethanks a lot
ReplyDeletethanks sir
ReplyDeletethank you..
ReplyDeletein adjustment entries there is a point -
ReplyDeletegoods of Rs.25000/- is included in stock but its bill is not received till the date and has not made any entry in any book.
please suggest its entries in the books.
vryy helpfull :) ty
ReplyDeleteBundle of thanx Respectable Sir
ReplyDeleteit is very useful if it is power point it very very useful
ReplyDeleteAs we write provision for bad nd doubtful debts on credit side of profit and loss account.....now tell me the treatment of provision for depreciation.....where i will go...plz fast..reply...
ReplyDelete