Adjustment Entries
10. Pass Journal entries for the following adjustment on 31st March, 2021:
(i) Interest due but not received 10,000.
(ii) Salaries due to staff * 50,000.
(iii) Out of the rent paid this year, * 5,000 is for the next year.
(iv) Provide 10% depreciation on Furniture costing? 1,00,000.
(u) Goods used in making Furniture (Sales Price 5,000; Cost 4,000).
(vi) Received commission of 320,000 by cheque, half of which is in advance
(vii) Allow interest on capital 8,000.
(vii) Charge interest on drawings 1,500.
Answers
Answer:
1. accured interest a/c dr. 10,000
to interest a/c 10,000
2. salaries a/c dr 50,000
to outsanding salary a/c 50,000
3.prepaid a/c dr .5,000
to rent a/c 5,000
4. depreciation a/c dr 10,000
to furniture a/c 10,000
5. furniture a/c dr 4,000
to purchase a/c 4,000
6 bank a/c dr.20,000
to commission a/c 20,000
commission receive a/c dr.10,000
to commission receive in advancea/c 10,000
7. interest on capital a/c dr. 8,000
to capital a/c 8,000
8. capital a/c dr. 1,500
to interest on Drawings a/c 1,500