Question

For the fol owing adjustments, pass adjusting entries:

1. Outstanding wages ₹ 5,000.
2. Depreciate machinery by ₹ 1,000.
3. Interest on capital @ 5% (Capital: ₹ 20,000)
4. Interest on drawings ₹ 50
5. Write off bad debts ₹ 500

Answer 1

Date	Particulars	L.F.	Debit ₹	Credit ₹
a.	Wages A/c   Dr.    To Outstanding wages A/c (Outstanding wages)		5,000	5,000
b.	Depreciation A/c   Dr.    To Machinery A/c (Depreciation provided)		1,000	1,000
c.	Interest on capital A/c   Dr.    To Capital A/c (Interest on capital @ 5%)		1000	1000
d.	Capital A/c  Dr.    To Interest on drawings A/c (Interest on drawings provided)		50	50
e.	Bad debts A/c   Dr.    To Sundry debtors A/c (Bad debts written off)		500	500