According to final accounts , what is the meaning of Private purchase and what is the adjustment entry for the same?
Answers
Answer:
shshhsshhshdhdhjsgshkzykskysylslgzktzyzylyzylzppyxyxyox
Answer:
Adjustments and their Accounting Treatment
Adjusting entries are made before making the organization’s financial statement and after the preparation of trial balance. Adjusting entries are accounting journal entries in which we adjust the expenses and the company’s revenue and finance. At the end of the accounting period, ledger requires some alterations and adjustments which is done by adjsuting journal entries. Types of Adjusting Entries are Outstanding Expenses, Prepaid Expenses, Accrued Income, Unearned Income, Inventory. In this article, we will learn about adjusting entries, types of adjusting entries, and accounting treatment.
Adjusting Entries and Accounting Treatment
There should be a two-fold impact in case of any adjustment entry. Debit profit and loss account and credit the expense account. Credit profit and loss account and debit the income account.
Rectification of Errors and Transfers
We need to rectify errors such as the wrong amount/account by passing correct adjustment entry. Also, record transfer from profit and loss appropriation accounts such as Partner’s salary or Interest on capital by debiting Profit and Loss account and crediting to the parties concerned.