what is the main purpose of adjusting and why we need to post it twice everytime.????????????????
ashish gupta
( student)
(1922 Points)
Replied 05 September 2011
Adjustments are done to rectify some mistakes by ommission in the accounts. Every entry affects two a/cs thas why it is posted twice.
I hope i understood your query in the sense you intended
shwetha
(CWA learner)
(447 Points)
Replied 05 September 2011
thanks for your reply Ashish. Yes you catch my doubt. Also can u elaborate it. we are posting depreciation in p&l a/c as a revenue expenditure and at the same time we are deducting it from concerned asste. Is depreciation is an error due to omission? that is my doubt. plssss elaborate. I m not opposing ur opinion. i just want to know elaborately. sry to ask u again.
Rohit Aggarwal
(ACA Bcom (H) MBA MCom)
(470 Points)
Replied 05 September 2011
ARUN KUMAR
(Financial Consultant )
(992 Points)
Replied 05 September 2011
Adjustement Entries Are those Who Have Give Good Understanding .
C.A. Sandeep Wawhal
(CA, PGDFM, BCom)
(1829 Points)
Replied 05 September 2011
Adjustement enties are passed for rectification in a/cs and also for adjustment of expenses which are not materialy incured during the period but are dues such as provisions for expenses or depreciation etc. Transferred entries are also adjustment entries.
Jyoti Goyal
(Manager)
(169 Points)
Replied 05 September 2011
All adjustment entries are done at the time of closing of books. Purpose of the entries are to identify the clear picture of accounts as on date. As concern to Depreciation, this is the method to reduce the book value of assets due to depreciation.
The expenses/Income are included in FY balances through adjustment entries and after that in next FY the same will be paid through these provisional/outstanding accounts.
Ramanuj
(Accountant.)
(834 Points)
Replied 05 September 2011
Dear All
Without adjustment entries can not final Balance sheet becouse lots of entry lay on without information & same mistake so that end of the financial years made adjustment entry.
Thanks
ashish gupta
( student)
(1922 Points)
Replied 05 September 2011
Shwetha - for that particular depreciation query
See you have to pass 2 entries for depreciation
1. Depreeciation A/c Dr.
To Asset A/c ( Being Asset depreciated)
2. Now depreciation a/c is closed and it is debited in P&L A/c by following entry
P&L A/c Dr.
To Depreciation A/c
If you pass both these entries there is no need to adjust depreciation. when you forget to charge the depreciation then only adjustment is done in P&L A/c and Balance Sheet and that adjustment is nothing but passing these entries only.
Pls give a feedback on this.
shwetha
(CWA learner)
(447 Points)
Replied 06 September 2011
Hi Ashis,
Yes I agree with u. Thanks a lot in participating the discussion.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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