What are Adjustment Entries? - Vidyadip

Question

What are Adjustment Entries?

✓

Answer

In an enterprise there are number of transactions relating to incomes and expenses, which need to be adjusted so that, final accounts give true and fair view of the results. All such items which need to be adjusted when Final Accounts are prepared are called adjustments. Journal entries are passed giving effect to the adjustments. These entries are known as Adjusting Entries.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "3 Marks Question" from Recording of Transactions - 2→Recording of Transactions - 2 — all question types→Account STD 11 Commerce question papers→CBSE Board STD 11 Commerce question papers→CBSE Board question paper generator→

Similar questions

What is meant by Rectification of Errors? State its objectives.

Oswal Woollen Mills, Amritsar (Punjab) sold shawls to Gupta Shawls, Jaipur as per details:
Sold 100 shawls @ ₹ 200 per shawl on 4th January, 2019, IGST is levied @ 12%. Trade Discount 25% and Cash Discount 5% if full payment is made within 14 days. Gupta Shawls sent 50% of the payment on 14th January, 2019 and balance payment on 10th February, 2019. Pass Journal entries.

What is a Ledger?

Mr. Abhinav Kumar, a homeopath doctor in practice has been advised by his Accountant to maintain his accounts on Accrual Basis instead of the presently followed Cash Basis of Accounting. Do you agree with the advice of the Accountant? Give reasons.

Write a short note on 'balancing an account'. Explain by balancing a Cash Account.

On 1st April, 2019, the position of Tendulkar was as follows: Stock-in-Hand ₹ 2,88,000; Bills Payable ₹ 48,000; Cash at Bank ₹ 2,16,000; Plant and Machinery ₹ 1,20,000; Debtors ₹ 60,000; Creditors ₹ 96,000; Investment ₹ 2,40,000, Loan from Suresh ₹ 1,80,000. What was the amount of Tendulkar's capital on the date? Pass an opening Journal entry.

Give two advantages of GST.

What are the parties to a promissory note?

Explain the following:
Going Concern Concept.

Ram started business on $1st$ April, $2018$ with a Capital of ₹ $25,000$ and a loan of ₹ $12,500$. On $31^{st}$ March, $2019$, his assets were ₹ $50,000$. Find his capital as on $31^{st}$ March, $2019$ and the profit earned during the year.