Question

(A) Short Answer Problems :
(i) Rs. 20,000 for wages were outstanding.
(ii) Write off depreciation on machinery Rs. 50,000
(iii) Rs. 15,000 were received in advance as interest.
1. Pass necessary adjusting entries in Mr. X's journal on 31st December 1988:​

Answer 1

Explanation:

i) o/s wages a/c dr. 20000

to x's a/c. 20000

ii) depreciation a/c dr. 50000

to machinery a/c. 50000

iii) advance received a/c dr. 15000

to x's a/c. 15000

Answer 2

Answer:

i ) ₹ 20,000 for wages were understanding.

Outstanding wages were added along with the respective wages that is shown in trial Balance.

The wages are shown in Profit and loss account on debit side and shown on the liabilities side of balance sheet.

Adjusted Entry :

• ) Wages ac Dr

To outstanding wages ac

( Wages were outstanding )

ii ) Write off depreciation on machinery ₹ 50,000

Depreciation is shown in debit side of Profit and loss Account. And the depreciation value deducted from machinery and shown on Assets side of balance sheet.

Adjusted Entry :

• ) Deprecitation ac Dr

To machinery ac

( depreciation on machinery )

iii ) ₹ 15,000 were received in advance as interest

The interest in advance is deducted from respective income and shown in credit side of profit and loss Account. And it is shown on liabilities side of balance sheet.

Adjusted Entry :

• ) Interest ac Dr

To Interest received in advance ac

( Interest received in advance )