Interest on drawings: It is the interest charged on the amount with drawn by the proprietor for this personal use. Interest on drawing is charged on the ground that the drawing of the proprietor amounts to loans granted by the business to the proprietor.
Date Particulars LF Dr. Rs. Cr. Rs.
Capital A/c … Dr.
To Interest on Drawing A/c
Save And Share :
Interest on drawings: It is the interest charged on the amount with drawn by the proprietor for this personal use. Interest on drawing is charged on the ground that the drawing of the proprietor amounts to loans granted by the business to the proprietor.
Date Particulars LF Dr. Rs. Cr. Rs.
Capital A/c … Dr.
To Interest on Drawing A/c
Save And Share :
Interest on Capital: Capital invests by the proprietor in the business is in this nature of the loan taken by the business from him.
Date Particulars LF Dr. Rs. Cr. Rs.
Interest on Capital A/c … Dr.
To Capital A/c
Save And Share :
Interest on Capital: Capital invests by the proprietor in the business is in this nature of the loan taken by the business from him.
Date Particulars LF Dr. Rs. Cr. Rs.
Interest on Capital A/c … Dr.
To Capital A/c
Save And Share :
Depreciation: Depreciation is the permanent, continuing and gradual diminution, shrinkage or fall in the book value of a fixed asset due to various reasons such as wear and tear, passing of time, obsolescence and so on.
Date Particulars LF Dr. Rs. Cr. Rs.
Depreciation A/c … Dr.
To Assets A/c
Profit and Loss Account … Dr.
To Depreciation A/c
Save And Share :
Income received in Advance or pre-received incomes: These Incomes received during a trading period, even though they have not been earned.
Receipt of advance from Income
Date Particulars LF Dr. Rs. Cr. Rs.
Incomes A/c … Dr.
To Advance Income A/c
Transfer of Advance Income from Income A/c
Date Particulars LF Dr. Rs. Cr. Rs.
Advance Income A/c … Dr.
To Income A/c
Save And Share :
Outstanding Income: Outstanding Incomes are incomes earned during the specific period, but not actually received during that period.
Income due for the period
Date Particulars LF Dr. Rs Cr. Rs.
Outstanding Income A/c … Dr.
To Income A/c
When outstanding Income actual received
Date Particulars LF Dr. Rs. Cr. Rs.
Cash / Bank A/c … Dr.
To Outstanding Income A/c.
Save And Share :
Outstanding Income: Outstanding Incomes are incomes earned during the specific period, but not actually received during that period.
Income due for the period
Date Particulars LF Dr. Rs Cr. Rs.
Outstanding Income A/c … Dr.
To Income A/c
When outstanding Income actual received
Date Particulars LF Dr. Rs. Cr. Rs.
Cash / Bank A/c … Dr.
To Outstanding Income A/c.
Save And Share :
Abnormal Loss of Stock by Accident, e.g. by Fire:
If a portion of the stock is lost the value of such loss is first to be ascertained. Thereafter, Abnormal Loss Account is to be debited and Treading Account is to be credited. Abnormal Loss Account is closed by transferring to the Profit and Loss Account.
Save And Share :
Prepaid expenses or expenses paid in advance: the expenses paid during the current period, but related to next trading period fall in this category.
Making payment of prepaid expenses:
Date Particulars LF Dr. Rs. Cr. Rs.
Prepaid expenses A/c … Dr.
To Cash / Bank A/c
(Being prepaid expenses paid)
Transfer of prepaid expenses to expenses A/c.
Date Particulars LF Dr. Rs. Cr. Rs.
Expenses a/c … Dr.
To Prepaid expenses A/c.
Save And Share :
Prepaid expenses or expenses paid in advance: the expenses paid during the current period, but related to next trading period fall in this category.
Making payment of prepaid expenses:
Date Particulars LF Dr. Rs. Cr. Rs.
Prepaid expenses A/c … Dr.
To Cash / Bank A/c
(Being prepaid expenses paid)
Transfer of prepaid expenses to expenses A/c.
Date Particulars LF Dr. Rs. Cr. Rs.
Expenses a/c … Dr.
To Prepaid expenses A/c.
Save And Share :
This is one kind of advertisement. When goods are distributed to the prospective customers as free samples, an expense is incurred (known as advertisement expense) and there is an usual reduction from the stock of goods
Read more...
Save And Share :
This is one kind of advertisement. When goods are distributed to the prospective customers as free samples, an expense is incurred (known as advertisement expense) and there is an usual reduction from the stock of goods
Read more...
Save And Share :
When some of the stock is withdrawn from the business by the proprietor for his personal use, the cost of such goods will be deducted from the purchases and will be added with the drawings of the proprietor.
Read more...
Save And Share :
When some of the stock is withdrawn from the business by the proprietor for his personal use, the cost of such goods will be deducted from the purchases and will be added with the drawings of the proprietor.
Read more...
Save And Share :
• Outstanding Expenses or Unpaid Expenses: These are the expenses that have been incurred during a particular trading period, but not paid by the end of that period.
• Making of provision for outstanding expenses
Date Particulars LF Dr. Rs. Cr. Rs.
Expenses account …Dr
To Outstanding Expenses A/c
• Making payment of outstanding expenses.
Date Particulars LF Dr. Rs. Cr. Rs
Outstanding Expenses A/c…Dr.
To Cash/ Bank A/c
(Being outstanding expenses paid for)
(Being provision for outstanding expenses made for the month of …)
Save And Share :
• Outstanding Expenses or Unpaid Expenses: These are the expenses that have been incurred during a particular trading period, but not paid by the end of that period.
• Making of provision for outstanding expenses
Date Particulars LF Dr. Rs. Cr. Rs.
Expenses account …Dr
To Outstanding Expenses A/c
• Making payment of outstanding expenses.
Date Particulars LF Dr. Rs. Cr. Rs
Outstanding Expenses A/c…Dr.
To Cash/ Bank A/c
(Being outstanding expenses paid for)
(Being provision for outstanding expenses made for the month of …)
Save And Share :
Adjustments in final accounts are the process of recording all those items which have not been including in the trial balance.
The items that typically require adjustments at the time of preparation of final accounts are
• Closing Stocks: Closing stock is the stock of goods that remain unsold at the end of the trading period
Save And Share :
Adjustments in final accounts are the process of recording all those items which have not been including in the trial balance.
The items that typically require adjustments at the time of preparation of final accounts are
• Closing Stocks: Closing stock is the stock of goods that remain unsold at the end of the trading period
Save And Share :
Adjustments in final accounts are the process of recording all those items which have not been including in the trial balance.
The items that typically require adjustments at the time of preparation of final accounts are
• Closing Stocks: Closing stock is the stock of goods that remain unsold at the end of the trading period.
Save And Share :
© Blogger templates Newspaper III by Ourblogtemplates.com 2008
Back to TOP
