what is the adjustment entry | Procedure For Posting A adjustment entry To A Journal Account

what is the adjustment entry

If a payment is made on the day of purchase or sales (due date), it is a cash transaction, But if the amount to be repaid is more or less than the amount actually to be paid, it cannot be taken as a cash transaction only , It is therefore necessary to recorded both the cash transaction and credit transaction in such transaction. This type of transaction is called a adjustment entry

As for this adjustment lesson, many students think that it is a difficult lesson, that it is easy to make mistakes and that they should focus more on it because they do not fully know about the adjustment lesson, for example many do not even know. That the adjustment can be divided into two types.

▶  types of adjustment entry

• adjustment within the year of accounting
• final account adjustment

adjustment within the year of accounting

for example, accounting period 1 April to 31 march

01/31 /Jan month rent $200 but paid 250 to valuable rent services ltd

What is the reason for preparing the final account?

The only reason for preparing a final account adjustment is government regulation

government rules and regulation.

Expenditure and income unrelated to the current account year should not be recorded in any company account, and if such expenses and income are recorded in the account, such transactions should be removed from the final account before the Income statement is published.

This page only gives details about the Adjustment within the year of accounting, visit the Final account adjustment page to know more about the Final account adjustment.Reed now

What is the reason for preparing the Adjustment entry( within the year of accounting)?

This Adjustment entry is being prepared to link the old transaction with the now record transaction when the same transaction is re-record.

▶  adjustment entry can be classified into two

Paid in advance

If the amount to be repaid is more than the amount actually to be paid it is called a advance

outstanding

If the amount to be repaid is less than the amount actually to be paid it is called a outstanding

---

How To Prepare An Adjustment Entry

This transaction is like a first point, so the details of the personal account are very important to register in the debtor's account, based on which it is an incomplete transaction.

Look at the debitors and creditors page to fully know about the debitors account and creditors account learn know

date	particular	amount	amount
02/01/24	rent A/C D	200
	to Valuable Rent Services Company A/C		200
	unpaid to Valuable Rent Services Company

---

date	particular	amount	amount
02/01/24	Valuable Rent Services Company A/C D	250
	to cash A/C		250
	cash paid to Valuable Rent Services Company

date	particular	amount	amount
04/11/20	Nemiex A/C D	100
	to cash A/C		100
	advance paid to Nemiex

---

date	particular	amount	amount
04/16/20	purchase A/C D	1000
	to Nemiex A/C		1000
	Goods were bought from Nemiex

---

date	particular	amount	amount
04/16/20	Nemiex A/C D	900
	to cash A/C		900
	cash paid to Nemiex

---

date	particular	amount	amount
01/05/22	chair Manufacturer company A/C D	1000
	to sales A/C		1000
	sales goods to chair Manufacturer company on credit

---

date	particular	amount	amount
01/05/22	cash A/C D	500
	to chair Manufacturer company A/C		500
	Cash received from chair Manufacturer company

▶   07/25/22 The goods were sold for $2000 for the Cabdi and the amount was received by 95% and 5% discount was offered

---

You can recorded if you know how to record briefly

Such a method would make the account easier to understand

▶   09/20/23 Share allotment money received $2000 And premium received $200

---

You can recorded if you know how to record briefly