Adjustment Entry for Unaccounted Stock

Adjustment entries are made to correct errors and omissions in accounting records. When a company receives goods or services but has not yet received a bill or invoice, it can lead to unaccounted stock. Here are the necessary adjustment entries for unaccounted stock worth Rs. 2900:

Date: End of the accounting period

Adjustment Entry:

| Particulars | Debit | Credit |
| --- | --- | --- |
| Unaccounted Stock | Rs. 2900 | |
| Purchases | | Rs. 2900 |

Explanation:

The adjustment entry for unaccounted stock involves debiting the unaccounted stock account and crediting the purchases account. This is because the company has received goods worth Rs. 2900, but the bill has not yet been received. This means that the stock has not been accounted for in the books of accounts. By making this adjustment entry, the unaccounted stock will be added to the purchases account, which will increase the cost of goods sold and decrease the company's net income.

Conclusion:

In conclusion, adjustment entries are necessary to correct errors and omissions in accounting records. When a company receives goods or services but has not yet received a bill or invoice, it can lead to unaccounted stock. The necessary adjustment entry for unaccounted stock involves debiting the unaccounted stock account and crediting the purchases account. This will ensure that the stock is accounted for in the books of accounts, and the cost of goods sold is accurately calculated.

Purchases a/c Dr 2900
to suspence a/c ...2900

(as stock will increase when we purchase Soo we have purchased but there is no bill that we received Soo we will dr purchases & cr it to suspence a\c)