Question

Give the journal entries for the following adjustments-

(a)Outstanding salary Rs. 3,500.

(b)Rent unpaid for one month at Rs. 6,000 per annum.

(c)Insurance prepaid for a quarter at Rs. 16,000 per annum.

(d)Purchase of furniture costing Rs. 7,000 entered in the purchase book.

Answer 1

$\begin{array}{ccccc}\text{Date}& \text{Particulars}& \text{L.F.}& \text{Amt. (Dr.)}& \text{Amt. (Cr.)}\\ & \text{Salaries A/c}\text{Dr.}& & 3,500& \\ & \text{To Outstanding Salaries A/c}& & & 3,500\\ & \underset{–}{\text{(Salaries of Rs. 3,500 remained outstanding)}}& & & \\ & \text{Rent A/c}\text{Dr.}& & 500& \\ & \text{To Outstanding Rent A/c}& & & 500\\ & \underset{–}{\text{(Rent unpaid for one month i.e}\frac{6,000}{12}=500)}& & & \\ & \text{Prepaid Insurance A/c}\text{Dr.}& & 4,000& \\ & \text{To Insurance A/c}& & & 4,000\\ & \underset{–}{\text{(Insurance paid in advance for three months)}}& & & \\ & \text{Furniture A/c}\text{Dr.}& & 7,000& \\ & \text{To Purchase A/c}& & & 7,000\\ & \text{(Purchase of furniture Rs. 7,000 recorded in}& & & \\ & \text{purchase book, now rectified)}& & & \end{array}$