Making an adjustment to net income

bethn0816 · ‎March 15, 2021

I am off by 27.00 what my net income should be and am being asked to adjust it on my end seeing as it is such a small amount. What entry would I make to record as miscellaneous?

john-pero · ‎March 16, 2021

To increase income without affecting banking, create a general journal entry (My Company . Make Journal Entry)

Enter date

Choose an income account and enterv27 in the Credit column. Tab to next line. Enter Owner Draw, your equity account used to track what you remove from business and the 27 should already appear in the Debit column.

Click Save

This essentially says you personally pocketed the previously unaccounted for $27.

If you instead must reduce income, post income as debit and equity as credit. This would represent that you added the missing money from your personal funds.

View solution in original post

john-pero · ‎March 16, 2021

To increase income without affecting banking, create a general journal entry (My Company . Make Journal Entry)

Enter date

Choose an income account and enterv27 in the Credit column. Tab to next line. Enter Owner Draw, your equity account used to track what you remove from business and the 27 should already appear in the Debit column.

Click Save

This essentially says you personally pocketed the previously unaccounted for $27.

If you instead must reduce income, post income as debit and equity as credit. This would represent that you added the missing money from your personal funds.

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Making an adjustment to net income