Basic categories of adjusting entries are deferred (Prepaid) Expenses deferred (Unearned) Revenues, deffered liabilities and deffered revenues.

Generally, there are 4 types of adjusting entries. Adjusting entries are prepared for the following: Accrued Income – income earned annd  received. Accrued Expense – expenses incurred and already paid.

1. Deferred (Prepaid) Expenses
2. Deferred (Unearned) Revenues
3. Accrued Expenses
4. Accrued Revenues

Generally, there are 4 types of adjusting entriesare depreciable amount which  are the cost ,  asset,   other amount substituted for cost, and residual value.

Accrued Expenses (Expense Payable) –   interest and loan.