Question

Make adjustment entries for the following in the books of A on 31st-March,2012 :

(i) Closing Stock Rs 50,000.

(ii) Outstanding wages Rs 2,000 and Outstanding salaries Rs 3,000.

(iii) Interest on Capital ₹ 4,800, and Interest on Drawings Rs 1,200.

Answer 1

Adjustment Journal Entries

$\begin{array}{ccccc}\text{Date}& \text{Particulars}& \text{L.F.}& \text{Amount}& \text{Amount}\\ & & & \text{Dr(Rs)}& \text{Dr(Rs)}\\ \text{(i)}& \text{Closing Stock A/c}\text{Dr.}& & 50,000& \\ & \text{To Trading A/c}& & & 50,000\\ & \underset{–}{\text{(Being closing stock at the end of the year)}}& & & \\ \text{(ii)}& \text{Wages A/c}\text{Dr.}& & 2,000& \\ & \text{To Outstanding Wages A/c}& & & 2,000\\ & \text{(Being outstanding wages at the end of the}& & & \\ & \underset{–}{\text{year)}}& & & \\ & \text{Salaries A/c}\text{Dr.}& & 3,000& \\ & \text{To Outstanding Salaries A/c}& & & 3,000\\ & \text{(Being outstanding Salaries at the end of the}& & & \\ & \underset{–}{\text{year)}}& & & \\ \text{(iii)}& \text{Interest on Capital A/c}\text{Dr.}& & 4,800& \\ & \text{To Capital A/c}& & & 4,800\\ & \text{(Being interest on capital provided)}& & & \\ & \text{Capital A/c}\text{Dr.}& & 1,200& \\ & \text{To Interest on Drawings A/c}& & & 1,200\\ & \underset{–}{\text{(Being interest on drawings charged)}}& & & \end{array}$