Hello Sir,
I have some doubts about Journal entries.
Outstanding Salary, Bad debts recover, outstanding interest.
please repply me... I know these are basics but in interview i didn't answered correctly.
And could u tell me about Contingent liability and when we dont use assets then also we depreciate assets??
Thanks in advance
1. outstanding salary:- Salary a/c Dr xxxxx
To Salary o/s a/c cr xxxx
2. Bad debts recovery if provision for bad debts account is maintained:
Provision for bad debts a/c Dr. xxxxxxx
To Bad debts recovered a/c Cr. xxxxxxxx
2. Bad debts recovery if provision for bad debts account is not maintained:
Bank a/c Dr. xxxxxxx
To Bad debts recovered a/c Cr. xxxxxxxx
3. I think what u are tellin is accrued interest. The entry should be made as below:
Accrued interest a/c Dr xxxxxxxxx
To Interest a/c Cr xxxxxxxxx
4. When a asset is in usable condition but not put to use, depreciation has to be calculated for that since an asset gets depreciated by lapse of time as per Accounting Standard 6.
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