Post by account_disabled on Mar 14, 2024 13:08:03 GMT 8
The relevant period. Determine the record balance in the general ledger account at the end of the period so that the estimated balance of liabilities and assets (real balance) shows the actual amount. So that at the end of the period, real accounts in the form of assets, liabilities and capital show the actual situation. Also read: Accounting Information Systems: Meaning, Parts and Functions in Business Example of Adjusting Journal in Business Example of Adjusting Journal in Business illustration of Adjusting Journal. source envato You will understand the adjusting journal better if you see it directly through examples of its application in business. How to make it is quite easy. You only need to pay attention to transaction behavior. And know about debit credit rules in accounting so you can prepare journal entries properly. Here are some examples of adjusting journal entries for business.
Prepaid Expenses It often happens that a company pays expenses for a future period. This is what is called prepaid expenses. For this reason, if you find expenses that should be paid in the future period, you need to calculate what expenses are reported in the current period. An example case is as follows: On the trial balance there is a value of IDR , , .-. At the end of the period, the Bulk Lead account balance information shows a remaining IDR , , . Which means the insurance premium which has become an expense is IDR , , ,- minus IDR , , ,- the result is IDR , ,-. This nominal amount must be recognized as insurance expense and reduce the amount of insurance paid at the beginning. Date Information Ref Debit Credit December Insurance expense IDR , ,- Prepaid insurance IDR , ,- Also read: Understanding the Accounting Cycle for a Simple Trading Company.
Revenue Receivables or Accrued Income Revenue receivables are income that has become the right of the company. However, it has not yet been accepted. This right must also be recorded as income in the relevant period. An example case is as follows: A company has completed work worth IDR , . However, this amount has not yet been included in the balance sheet amounting to IDR , , which is the company's income receivable. If recorded in the adjusting journal, service income will increase to IDR , , . Date Information Ref Debit Credit December Revenue Receivables IDR , ,- Services revenue IDR , ,- Also read: General Accounting Journal: Definition, Examples and How to Make It . Prepaid Building Rental Expenses Not much different from the first case, namely the expenses are paid in advance.
Prepaid Expenses It often happens that a company pays expenses for a future period. This is what is called prepaid expenses. For this reason, if you find expenses that should be paid in the future period, you need to calculate what expenses are reported in the current period. An example case is as follows: On the trial balance there is a value of IDR , , .-. At the end of the period, the Bulk Lead account balance information shows a remaining IDR , , . Which means the insurance premium which has become an expense is IDR , , ,- minus IDR , , ,- the result is IDR , ,-. This nominal amount must be recognized as insurance expense and reduce the amount of insurance paid at the beginning. Date Information Ref Debit Credit December Insurance expense IDR , ,- Prepaid insurance IDR , ,- Also read: Understanding the Accounting Cycle for a Simple Trading Company.
Revenue Receivables or Accrued Income Revenue receivables are income that has become the right of the company. However, it has not yet been accepted. This right must also be recorded as income in the relevant period. An example case is as follows: A company has completed work worth IDR , . However, this amount has not yet been included in the balance sheet amounting to IDR , , which is the company's income receivable. If recorded in the adjusting journal, service income will increase to IDR , , . Date Information Ref Debit Credit December Revenue Receivables IDR , ,- Services revenue IDR , ,- Also read: General Accounting Journal: Definition, Examples and How to Make It . Prepaid Building Rental Expenses Not much different from the first case, namely the expenses are paid in advance.
