Journal Entry for Adjustment

Bad debts on debtors or credit sales

Bad debts account

               To Debtors (B/R, A/R) account

(Being – bad debts on debtors)

Dr

Accrued income (income earned but not received)

Accrued Income⁺ account  

               To Income⁺ account

(Being – income earned but not received)

Dr

Provision for bad debts

Provision for bad debts account  

               To Debtors (B/R, A/R) account

(Being – provision for bad debts on debtors)

Dr

Amortization/write off on Intangible assets

Amortization/ write off account

               To Intangible assets account

(Being – intangible/fictitious assets write off)

Dr

Bad debts received which was written off

Cash/bank account

               To Bad debt (recovered) account

(Being – bad debts received from debtors)

Dr

Advance income received

Income^{^} (by name) account

               To Advance income^{^} account

(Being – income received in advance)

Depreciation charged on assets

Depreciation account

               To Assets (by name) account

(Being – depreciation charged on assets)

Dr

Expenses expired from advance

Expenses expired account   

                 to advance expenses account

(Being – expenses expired from advance)

Dr

Appreciation on assets

Assets (by name) account    

               To Appreciation account

(Being – appreciation on assets)

Dr

Goods lost by fire or theft

Insurance claim account

Profit and loss account

               To Purchase account

(Being – goods destroyed by fire)

Dr

Dr

Expenses outstanding, payable, or due

Expenses* (by name) account        

               To Outstanding expenses* account

(Being – expenses due, payable, outstanding)

Dr

Closing stock

Closing stock account 

               To Trading account

(Being – closing stock recorded) 

Dr

Prepaid/advance expenses paid

Prepaid expenses^# account

               To Expenses^#

(Being – expenses paid in advance)

Dr