Question

What adjusting entries would you record for the following

(a) Depreciation

(b) Discount on debtors

(c) Interest on capital

(d) Manager's commission

Answer 1

The following adjusting entries would be there

For Recording the Depreciation

$\begin{array}{ccccc}\text{Date}& \text{Particulars}& \text{L.F.}& \text{Amt. (Dr.)}& \text{Amt. (Cr.)}\\ & \text{Depreciation A/c}\text{Dr.}& & & \\ & \text{To Sundry Assets A/c}& & & \end{array}$

For Recording the Discount on Debtors

$\begin{array}{ccccc}\text{Date}& \text{Particulars}& \text{L.F.}& \text{Amt. (Dr.)}& \text{Amt. (Cr.)}\\ & \text{Profit and Loss A/c}\text{Dr.}& & & \\ & \text{To Provision for Discount on Debtors A/c}& & & \end{array}$

For Recording Interest on Capital

$\begin{array}{ccccc}\text{Date}& \text{Particulars}& \text{L.F.}& \text{Amt. (Dr.)}& \text{Amt. (Cr.)}\\ & \text{Interest on Capital A/c}\text{Dr.}& & & \\ & \text{To Capital A/c}& & & \end{array}$

For Recording Manager's Commission

$\begin{array}{ccccc}\text{Date}& \text{Particulars}& \text{L.F.}& \text{Amt. (Dr).}& \text{Amt. (Cr.)}\\ & \text{Profit and Loss A/c}\text{Dr.}& & & \\ & \text{To Manager's Commission A/c}& & & \end{array}$