what is entry of closing stock in p & L a/c & balance sheet
1 - General journal entry2 - Adjusting journal entry3 - Month end adjusting entry
debit purchases / goodscredit cash / bank / accounts payable
156000
debit wages payablecredit cash
debit loss by firecredit purchases
[Debit] Purchase Return [Credit] Purchases
loss by theft A/c to purchases
[Debit] Purchases [Credit] cash / bank
You would reverse the journal entry then record the correct entry.
it s transfer to profit and loss account.
Adjusting entries are made for different reasons like errors in previous journal entries or adjustment at month end or year end for accruals etc.
Debit cash / bank / accounts payableCredit purchases returns