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Journal Entries

Date

Particulars

L.F.

Debit ( )

Credit( )

2011

Profit and Loss A/c                                  Dr.

 

5,00,000

 

Dec.31      To Salaries A/c
(being closing entry for salaries paid)
 

5,00,000

 

  • Adjusting entries: At the end of the year the amount of expenses or income may have to be adjusted for amounts received in advance or for amounts not yet settled in cash. Such an adjustment is made through journal entries. Like outstanding expenses, prepared expenses, interest on capital, etc

Example: Provide depreciation on furniture of ₹ 1,00,000 @ 10% per annum. Give adjustment entry as on Dec. 31, 2011.

 

Date

Particulars

L.F.

Debit ( )

Credit( )

2011

Dec.31

 

Depreciation A/c                 Dr.

 

10,000

 

   To Furniture A/c
(being depreciation written off )
   

10,000

 

  • Transfer entries: Transfer entries are passed in the journal proper for transferring an item entered in one account to another account.

Example: The proprietor takes goods worth ₹ 5,000 for personal use. Give transfer entry as on Dec. 31, 2011.

 

Date

Particulars

L.F.

Debit ( )

Credit( )

2011

Dec.31

Drawings A/c                                          Dr.

5,000

 

    To Purchases A/c
(being goods withdrawn for personal use)
   

5,000

 

  • Rectifying entries: Rectifying entries are passed for rectifying the errors which might have been committed in the books of accounts.

Example: Purchase of furniture for ₹ 10,000 was debited to Purchase Account. Pass rectifying entry as on Dec. 31, 2011.

 

Date

Particulars

L.F.

Debit ( )

Credit( )

2011

Dec.31

Furniture A/c                                                   Dr.

10,000

To Purchases A/c
(being wrong debit to Purchases account rectified)
   

10,000

 





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