Round off journal entries

This query is : Resolved

Quick Summary

Round off entries are used to adjust small differences in accounting amounts. A 'Round Off A/c' can be created under indirect expenses/income depending on balance. Debtors or creditors differences like 2 or 0.92 are adjusted through journal entries to balance accounts.

amruth

amruth (Querist)
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30 October 2013 Hi All

can anyone help me out what is the entry for Round off

Example 1

Debtors pay less Rs.2/- what is the journal entry to adjust it.

Example 2

Advance payment done Rs.1800.92/- paise but the creditor sent goods for Rs.1800/- what is the adjustment entry for Paise 0.92

Round off comes under which head it is a indirect expense or indirect income

Thanking you

Ganeshbabu K

Ganeshbabu K (Expert)
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30 October 2013 Create "Round off A/c " under indirect expences if at the end of year if it is debt balance let it be like that, if net balance is credit balance we can alter to indirect income
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1)Dr.BankA/c
Dr.round off A/c
Cr.Debtors A/c

2)Dr.creditor A/c 1800.92
Cr.bank A/c 1800.92

3)
Dr.Purchases A/c
Dr.input A/c's
Dr.round off A/c
Cr.Creditor A/c

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