Question

Pass adjusting entries for the following:

1. The closing stock was valued at ₹ 5,000
2. Outstanding salaries ₹ 150
3. Insurance prepaid ₹ 450
4. ₹ 20,000 was received in advance for commission.
5. Accrued interest on investments is ₹ 1,000.

Answer 1

Date	Particulars	L.F.	Debit ₹	Credit ₹
a.	Closing stock A/c   Dr.    To Trading A/c (Closing stock brought into account)		5,000	5,000
b.	Salaries A/c   Dr.    To Outstanding salaries A/c (Salaries outstanding adjusted)		150	150
c.	Prepaid insurance premium A/c   Dr.    To Insurance premium A/c (Insurance prepaid adjusted)		450	450
d.	Commision received A/c  Dr.    To Commission received in advance A/c (Commission received in advance adjusted)		20,000	20,000
e.	Accrued interest on investment   Dr.    To Interest on investment A/c (Accrued interest on investment adjusted)		1,000	1,000