Class 12th HSC Board Syllabus
Book-Keeping & Accountancy
Adjustment
In the
book-keeping and Accountancy, entries and their adjustments are very useful
concepts where students can get proper understanding how to posting transactions
and adjustment at the time of solving questions and BOARD Exam Paper.
Every Adjustments
having two effects. If 1st Effect goes into Debit of Trading A/c
then and Comes into Profit and Loss A/c Credit Side or Balance sheet
Liabilities side i.e. Its Depend upon adjustments.
Let’s Start to learn
the Adjustment of Book – Keeping and Accountancy
Adjustment No: 1 Closing Stock:
1st
Effect: Trading A/c (Cr. Side)
2nd Effect:
Balance sheet (Assets Side)
Adjustment No: 2 Depreciation on Fixed Assets
1st
Effect : Balance sheet (Assets Side) [Less from Fixed Assets]
2nd
Effect: Trading A/c or Profit & Loss A/c (Dr. Side)
Adjustment
No: 3 Appreciation on Assets
1st
Effect : Balance sheet (Assets Side) [Add from Assets]
2nd
Effect: Trading A/c or Profit & Loss A/c (Cr. Side)
Adjustment No: 4 Appreciation on Liabilities
1st Effect:
Balance sheet (Liabilities Side) [Add from Liabilities]
2nd
Effect: Trading A/c or Profit & Loss A/c (Dr. Side)
Adjustment No: 5 Write off on Liabilities
1st Effect:
Balance sheet (Liabilities Side) [Less from Liabilities]
2nd
Effect: Trading A/c or Profit & Loss A/c (Cr. Side)
Adjustment No: 6 Outstanding Expenses
1st
Effect : Trading A/c or Profit & Loss A/c (Dr. Side) [Add from Expense]
2nd
Effect: Balance sheet (Liabilities Side)
Adjustment No: 7 Outstanding Income / Income due but not received
1st
Effect: Profit & Loss A/c (Dr. Side) [Add from Expense]
2nd
Effect: Balance sheet (Assets Side)
Adjustment No: 8 Prepaid /Advance Expenses
1st
Effect : Trading A/c or Profit & Loss A/c (Dr. Side) [Less from Expense]
2nd
Effect: Balance sheet (Assets Side)
Adjustment No: 9 Prepaid/ Advance Income
1st
Effect : Trading A/c or Profit & Loss A/c (Cr. Side) [Less from Expense]
2nd
Effect: Balance sheet (Liabilities Side)
Adjustment No: 10 Reserve for Doubtful Debts / Provision for Doubtful Debt and Further Bad Debts
1st Effect:
Balance sheet (Assets Side) [Less from Debtors]
2nd
Effect: Profit & Loss A/c (Dr. Side) [Add from Bad debts]
Adjustment No: 11 Reserve for Discount on Debtors
1st Effect:
Balance sheet (Assets Side) [Less from Debtors]
2nd
Effect: Profit & Loss A/c (Dr. Side) [Add from Discount]
Adjustment No: 12 Dishonored of Bills Receivable
1st Effect:
Balance sheet (Assets Side) [Less from Bills Receivable]
2nd
Effect: Balance sheet (Assets Side) [Add from Debtors]
Adjustment No: 13 Unrecorded Sales
1st
Effect : Trading A/c (Cr. Side) [Add from Sales]
2nd
Effect: Balance sheet (Assets Side) [Add in Debtors]
Adjustment No: 14 Unrecorded Purchases
1st Effect : Trading A/c (Dr. Side) [Add from Purchases]
2 nd Effects: Balance sheet (Liabilities Side) [Add in Creditors]
Adjustment No: 15 Dishonored of Bills Payable
1st Effect: Balance sheet (Liabilities Side) [Less from Bills Payable]
2nd Effect: Balance sheet (Laibilities Side) [Add from Creditors]
Adjustment No: 16 Reserve for Discount on Creditors
1st Effect: Balance sheet (Liabilities Side) [Less from Creditors]
2nd Effect: Profit & Loss A/c (Cr. Side) [Add from Discount]
Adjustment No: 17 Interest on Capital
1st Effect: Balance sheet (Liabilities Side) (Capital/Current A/c) [Add]
2nd Effect: Profit & Loss A/c (Dr. Side)
Adjustment No: 18 Interest on Drawing
1st Effect: Balance sheet (Liabilities Side) (Capital/Current A/c) [Less
2nd Effect: Profit & Loss A/c (Dr. Side)
Adjustment No: 19 Interest on Investment/ Govt. Bond/ Loan Given
1st Effect: Balance sheet (Assets Side) [Add in Investment/Govt. Bond/ Loan Given]
2nd Effect: Profit & Loss A/c (Cr. Side)
Adjustment No: 20 Interest on Bank Loan Taken
1st Effect: Balance sheet (Liabilities Side) [Add in Bank Loan]
2nd Effect: Profit & Loss A/c (Dr. Side)
Adjustment No: 21 Goods Destroyed by Fire/Accident/Transit/ Or Theft/Stolen
Condition A) Unclaimed Insurance
1st Effect: Trading A/c (Cr. side)
2nd Effect: Profit/Loss A/c (Dr. side)
Condition B) Insurance Claimed
1st Effect: Trading A/c (Cr. side)
2nd Effect: Profit/Loss A/c (Dr. side)
3rd Effect: Balance sheet (Assets)
Adjustment No; 22 Goods withdraw for Personal Uses (Drawing)
1st Effect: Balance sheet (Liabilities side) [Less from Capital] / [Add from Drawing]
2nd Effect: Trending A/c (Cr. side)
Adjustment No: 23 Goods distributed as a free Sample (Advertisement)
1st Effect: Profit / Loss A/c (Dr. Side) [Add from Advertisement]
2nd Effect: Trading A/c (Cr. Side)
Adjustment No.: 24 Profit on sale of Assets
1st Effect: Balance sheet (Assets Side) [Less from Assets]
2nd Effect: Profit/Loss A/c (Cr. Side)
Adjustment No.: 25 Loss on sale of Assets
1st Effect: Balance sheet (Assets Side) [Less from Assets]
2nd Effect: Profit/Loss A/c (Dr. Side)
Adjustment No.: 26 Overvaluation of Assets
1st Effect: Balance sheet (Assets Side) [Less from Assets]
2nd Effect: Profit/Loss A/c (Dr. Side) Or Realization A/c (Dr. Side)
Adjustment No.: 27 Undervaluation of Assets
1st Effect: Balance sheet (Assets Side) [Add from Assets]
2nd Effect: Profit/Loss A/c (Cr. Side)
Adjustment No.: 28 Overvaluation of Liabilities
1st Effect: Balance sheet (Liabilities Side) [Less from Liabilities]
2nd Effect: Profit/Loss A/c (Dr. Side) Or Realisation A/c (Dr.Side)
Adjustment No.: 29 Undervaluation of Liabilities
1st Effect: Balance sheet (Assets Side) [Add from Liabilities]
2nd Effect: Profit/Loss A/c (Cr. Side) Or Realisation A/c (Cr.Side)
Adjustment No.: 30 Salary / Commission to Partner
1st Effect : Partner's Current A/c / Partner's Capital A/c [Cr. Side]
2nd Effect ; Profit / Loss A/c [Dr. Side]
Click Here Download Adjustment in PDF : Super 30 Adjustment
HSC Commerce 12th Board Exam- Maharashtra State Board Textbook Solutions
Chapter 2 - Not for Profit Concerns
Chapter 4 - Retirement of Partner
Chapter 5 - Death of Partner
Chapter 6 - Dissolution of Partner
Chapter 7 Bill of Exchanges
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