Generally the journal entries are used in accounts adjustments. We have to use this journal entries for the following transactions.
1.Written off :
While payments collects from debtors and paid to suppliers, it may be some variation. To rounded off the small differences we need to make a journal entry.
Ex : Write off a/c dr 500
to Party a/c 500 cr
2. Depreciation on fixed assets.
Ex : Depreciation a/c Dr 1000
Asset account 1000 cr
3. Discount received and discount allowed.
Ex: 1.Discount paid a/c Dr 5000
to Party a/c (debitor) 5000 cr
Ex : 2 Party a/c (creditor) dr 5000
To Discount recd a/c 5000 cr
4. Provisions – like salaries and expenses.
Ex : Salary account Dr 12000
to Salary outstanding a/c 12000 cr
5. TDS deduction entries
Ex : Party a/c dr 15000
to TDS a/c 15000 cr
(being TDS deducted from the party)
6. Bad debts wirtten off
Bad Debts a/c Dr 200
to Party a.c 200 cr
journal entries in tally