Final entries (closing entry) in Tally ERP 9

By /

[wp_ad_camp_1]

Adjustment Items   : I) To Provide for outstanding Expenses
Adjustment Entries :  Expenses account (concerned) (a) Dr
                                 To Outstanding expenses account (b)
Effect to be shown in
             Profit & Loss a/c : (a) Debit side as an addition to the concerned a/c
             Balance sheet      :  (b) Liabilities Side

Adjustment Items   : II) To Adjust Prepaid expenses
Adjustment Entries :  Prepaid Expenses account (a) Dr
                                 To Expenses account (concerned) (b)
Effect to be shown in
             Profit & Loss a/c : (a) Debit side as deduction from the concerned exp.a/c
             Balance sheet      :  (b) Asset Side

Adjustment Items   : III) To Adjust Income Earned but not received
Adjustment Entries :  Outstanding Income account (a) Dr
                                 To Income account (concerned) (b)
Effect to be shown in
             Profit & Loss a/c : (b) credit side as and addition to the concerned Income a/c
             Balance sheet      :  (a) Asset Side

Adjustment Items   : IV) To Adjust Income Received in Advance
Adjustment Entries :   Income account (concerned) (a) Dr
                                 To Income received in advance account (b)
Effect to be shown in
             Profit & Loss a/c : (a) credit side as deduction addition from income a/c  concerned
             Balance sheet      :  (b) Liabilities Side

Adjustment Items   : V) To Write off Bad Debt 
Adjustment Entries :   Bad Debt A/c (a) Dr
                                 To Debtors account (b)
Effect to be shown in
             Profit & Loss a/c : (a) Debit side
             Balance sheet      :  (b) Asset Side, as a deduction from sundry debtors

Adjustment Items   : VI) To Provide for Doubtful Debt 
Adjustment Entries :   Profit and Loss A/c (a) Dr
                                 To Reserve for Doubtful  Debt A/c (b)
Effect to be shown in
             Profit & Loss a/c : (a) Debit side
             Balance sheet      :  (b) Asset Side, as a deduction from sundry debtors
Adjustment Items   : VII) To Provide for Discount on Debtors
Adjustment Entries :   Profit and Loss A/c (a) Dr
                                 To Reserve for Doubtful  Debt A/c (b)
Effect to be shown in
             Profit & Loss a/c : (a) Debit side
             Balance sheet      :  (b) Asset Side, as a deduction from sundry debtors

Adjustment Items   : VIII) To Provide for Discount on Creditors
Adjustment Entries :   Reserve for Discount on Creditors A/c (a) Dr
                                 To Profit and Loss A/c (b)
Effect to be shown in
             Profit & Loss a/c : (a) Credit side
             Balance sheet      :  (b) Liabilities Side, as a deduction from Sundry Creditors
Adjustment Items   : IX) To Provide for Depreciation on a permanent asset
Adjustment Entries :   Depreciation A/c (a) Dr
                                 To (concerned) Asset A/c (b)
Effect to be shown in
             Profit & Loss a/c : (a) Debit side
             Balance sheet      :  (b) Asset Side, as a deduction from the concerned assets.

[wp_ad_camp_2]

Adjustment Items   : X) To adjust interest on Proprietor’s Capital
Adjustment Entries :   Interest on Capital  A/c (a) Dr
                                 To Capital A/c (b)
Effect to be shown in
             Profit & Loss a/c : (a) Debit side
             Balance sheet      :  (b) Liabilities Side, as addition to Capital
Adjustment Items   : XI) To adjust interest on Drawings
Adjustment Entries :   Capital  A/c (a) Dr
                                To Interest on Drawing  A/c (b)
Effect to be shown in
             Profit & Loss a/c : (a) Credit side
             Balance sheet      :  (b) Liabilities Side, as deduction from Capital
Adjustment Items   : XII) For Goods used as free samples
Adjustment Entries :   Free Samples A/c (a) Dr
                                 To Purchases  A/c (b)
Effect to be shown in
             Profit & Loss a/c : (a) Debit side
                                        : (b) a deduction from Purchase A/c in the Trading A/c.
Adjustment Items   : XIII)  Goods used as statonery in office
Adjustment Entries :   Printing and Stationery A/c (a) Dr
                                 To Purchases  A/c (b)
Effect to be shown in
             Profit & Loss a/c : (a) Debit side of profit & loss A/c
                                        : (b) a deduction from Purchases in the Trading A/c.
Adjustment Items   : XIV)  Loss of stock by fire etc. insured and claim admitted
Adjustment Entries :   Insurance Claim A/c (a) Dr
                                 To Trading A/c (b)
Effect to be shown in
             Profit & Loss a/c : (b) Credit Side of Trading A/c
             Balance sheet      : (a) Asset side as Insurance Claim
Adjustment Items   : XV)  Loss of stock partially insured and admitted by insurance Co.
Adjustment Entries :   Insurance Claim A/c (a) Dr
                                 Loss by fire A/c (b) Dr
                                 To Trading A/c (c)
Effect to be shown in
             Profit & Loss a/c : (b) Debit Side of Profit & Loss A/c
                                          (c) Credit Side of the  Trading A/c.
             Balance sheet      : (a) Insurance Claim on the Asset side
Adjustment Items   : XVI)  Loss of stock by fire uninsured 
Adjustment Entries :   Loss by fire A/c (a) Dr
                                 To Trading A/c (c)
Effect to be shown in
             Profit & Loss a/c : (b) Debit Side of Profit & Loss A/c
                                          (c) Credit Side of the Trading A/c.

Basic Rules of Data Entry in Tally ERP9

[wp_ad_camp_3]

Related Posts

Scroll to Top