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Question -

Give the journal entries for the following adjustments:

(a) Outstanding salary at ₹ 3,500.
(b) Rent unpaid for one month at ₹ 6,000 per annum.
(c) Insurance prepaid for a quarter at ₹ 16,000 per annum.
(d) Purchase of furniture costing ₹ 7,000 entered in the purchases book.



Answer -

 

S. No.

Particulars

L.F.

Debit

Credit

a)

Salaries A/c Dr.

3,500

To Outstanding Salaries A/c

3,500

(Salaries outstanding for Rs 3,500)

b)

Rent A/c Dr.

500

To Outstanding Rent A/c

500

c)

Prepaid Insurance A/c Dr.

4,000

To Insurance A/c

4,000

(Insurance premium paid in advance for 3 months i.e. ₹ 4000)

d)

Furniture A/c Dr.

7,000

To Purchases A/c

7,000

(Correction entry for Wrong debit of Furniture to Purchases Account)

(Rent unpaid for one month = 6000/12 = ₹ 500)

 

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