Question

Give the journal entries for the following adjustments:
(a) Outstanding salary ₹ 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 1

S.No.	Particulars	L.F.	Debit ₹	Credit ₹
(a)	Salaries A/c Dr.		3,500
	To Outstanding Salaries A/c			3,500
	(Salaries of ₹ 3,500 is remaining outstanding)
(b)	Rent A/c Dr.		500
	To Outstanding Rent A/c			500
	(Rent unpaid for one month at ₹ 500  `6000/12`)
(c)	Prepaid Insurance A/c Dr.		4,000
	To Insurance A/c			4,000
	(Insurance paid in advance for 3 months i.e. ₹ 400)
(d)	Furniture A/c Dr.		7,000
	To Purchases A/c			7,000
	(Furniture was wrongly debited to Purchases Account, now rectified)