It's a cost ACC things

1. Adjusting Journal
Principle of Accounting
Sajun Saha
Lecturer
Department of Human Resource Management
Jatiya Kabi Kazi Nazrul Islam University Mymensingh.

2. Increase--------Cr.
Revenue + Liabilities = ------------------------
Decrease--------Dr.
Increase--------Dr.
Expenses + Assets +Withdraw= -------------------------
Decrease---------Cr.

3. EXERCISE 1:
Robin is the owner of fresh trade ltd at the end on February ,2015.Robin is trying
to Prepare a monthly financial statement the following information related to
February ,2014.
1. At February 1,2014 he has borrowed taka 400000 from a local bank on a 10
years mortgagee. The annual interest rate is 12%
2. Revenue unrecorded totaled tk 200000
3. Salary expenses of taka 4000 accrued.
4. Prepaid Insurance taka 1200 has expired journalize the adjusting entries.

4. SOLUTION
2014
Feb
28
Interest Expenses Dr.
Interest payable Cr.
(Interest expenses adjusted)
4ooo
4000
Account receivable Dr.
Service revenue Cr.
(Revenue adjusted)
200000
200000
Salary expenses Dr.
Salaries payable Cr.
4000
4000
Insurance expenses Dr.
Prepaid insurance Cr.
1200
1200

5. Exercise-02
Mr. Unus opens a’r company on April 1.At April 30 the trial balance show the
following balance for Selected Accounts.
Prepaid insurance 360000
Equipment 24000
Note payable 200000
Service revenue 1800
Unearned revenue 4200
Analysis reveals the following additional data.
1. Prepaid insurance the cost of a 2 year insurance Policy, effective April -01
2. Depreciation on the equipment is taka 500 per month.
3. The note payable is dated April 01,It is a 6 month 12% note.
4. Seven customer paid for the company 6 month loan service package of the
600 beginning in April, these customer were serviced in April.
5. Loan service provided other customers but not recorded at April 30, totaled taka 15000

6. Instruction: Prepare the adjusting entries for the month of April and show computations.
(Solution)
Date Account tittle Ref. Dr. Taka Cr. Taka
2011
April
30
Insurance expenses Dr.
Prepaid insurance Cr.
15000
15000
Depreciation expenses Dr.
Accumulated Dep.expenses Cr.
500
500
Interest expense Dr.
Interest payable Cr.
2000
2000
Unearned service revenue Dr.
Service revenue Cr.
700
700
Account receivable Dr.
Service revenue Cr.
15000
15000

7. Thank you
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