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Question
Pass adjusting entries for the following:
- The closing stock was valued at ₹ 5,000
- Outstanding salaries ₹ 150
- Insurance prepaid ₹ 450
- ₹ 20,000 was received in advance for commission.
- Accrued interest on investments is ₹ 1,000.
Journal Entry
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Solution
| 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 |
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