Question
What is meant by Adjustment Entry?
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Answer
Adjustment Entry is the entry passed to record expenses and incomes that relate to the accounting period but are yet to be paid or received.
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Similar questions
Atul does not keep proper records of his business. He gives you the following information:
Calculate profit or loss for the year.
Calculate profit or loss for the year.
Complete the following Statemant of Profit or Loss:
A firm sells goods at a Gross profit of 25% of sales. On 1st April, 2017 the Stock was ₹ 40,000; Purchases were ₹ 1,10,000 and the Stock on 31st March, 2018 was ₹ 30,000. What was the value of Sales?
Is Depreciation the result of fluctuations in the value of fixed assets?
Rectify the following errors:
- Purchases Book has been undercast by ₹ 1,000.
- Credit sale to Anu Prakash ₹ 7,000 was recorded in Purchases Book.
- Credit sale to Rahul ₹ 7,000 was recorded as ₹ 700.
Classify the following into Capital, Revenue and Deferred Revenue expenditure, stating reasons in each case:
- A sum of ₹ 32,000 has been spent on a machine as follows: (i) ₹ 20,000 for addition to double the output, (ii) ₹ 5,000 for repairs necessitated by negligence and (iii) ₹ 7,000 for replacement of worn-out parts.
- Total expenditure on a cinema building during the year was ₹ 2,00,000 out of which 20% related to repairs and 80% represented improvements and additions.
- Compensation paid to a retrenched employee for the loss of employment.
- Second-hand furniture worth ₹ 40,000 was purchased and repairing of this furniture cost ₹ 15,000. The furniture was installed by own workmen-wages for this being ₹ 5,000.
- A person was injured by the motor car of the company. ₹ 10,000 was paid to him by way of compensation.
- Advertisement expenditure in special advertisement drive.
From the following information, prepare the Trading Account for the year ended 31st March, 2017:
Adjusted Purchases ₹ 15,00,000; Sales ₹ 21,40,000; Returns Inwards ₹ 40,000; Freight and Packing ₹ 15,000; Packing Expenses on Sales ₹ 20,000; Depreciation ₹ 36,000; Factory Expenses ₹ 60,000; Closing Stock ₹ 1,20,000.
Adjusted Purchases ₹ 15,00,000; Sales ₹ 21,40,000; Returns Inwards ₹ 40,000; Freight and Packing ₹ 15,000; Packing Expenses on Sales ₹ 20,000; Depreciation ₹ 36,000; Factory Expenses ₹ 60,000; Closing Stock ₹ 1,20,000.
Goods costing ₹ 26,000 were sent to a customer at 20% profit on sale on sale or return basis. Customer returned goods of the selling price of ₹ 7,000. At what amount the remaining goods with the costomer will be shown in the Balance Sheet?
Total of the Sales Book is posted to the credit side of the Sales Account in the General Ledger while individual account of customers is debited by the amount of their respective purchases. Is the above statement correct? Give reasons.
What is a Purchases Return Book? Give its specimen.