To Trading A/c

Example:

ii. If it is          an item chargeable to

Profit and Loss A/c, add the outstanding expenses to the relevant expenses in the debit side of the Profit and Loss A/c.

To Wages outstanding A/c

Salaries A/c                             Dr

To Salaries outstanding A/c

Expenses A/c                          Dr

To Respective

Expenses A/c

To Respective Income A/c Example:

To Respective Income

received in advance A/c Example:

To Rent received in

advance A/c

To Capital A/c

To Interest on

drawings A/c

To Interest Outstanding A/c Example:

To Interest Outstanding A/c

on investments A/c                           Dr

To Interest received A/c

To Fixed Asset A/c

Example:

Depreciation A/c                                   Dr

To Machinery A/c

To Sundry debtors A/c

To Provision for Bad and doubtful debts A/c

ii. If provision for bad and doubtful debts is given in the Trial Balance (Old) and also in the adjustment (New):

Add new provision for bad and doubtful debts with bad debts written off.

a) If the old provision for bad and doubtful debts is less than the above total, then the difference will be shown on the debit side of the Profit and Loss account.

b) If the old provision for bad and doubtful debts is more than the above total, then the difference
should be shown on the credit side of the Profit and Loss account.

To Provision for discount on debtors A/c

(Amount of provision for discount

is ascertained on good debtors)

way of deduction from Sundry debtors

(after deduction

of bad debts and new

provision for

bad and doubtful debts)

on Creditors

on Creditors A/c Dr

To Profit and Loss A/c

by way of deduction

from

Sundry Creditors.

Rs.

Rs.

Rs.

Rs.

xxx

 xxx

xxx

Liabilities

 Rs.

 Rs.

 Assets

 Rs.

 Rs.