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    Journal Entry

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    shreyu14796
    The document outlines various types of accounts - personal, real, and nominal accounts. It then provides examples of journal entries for typical business transactions involving the purchase and sale of goods and services, as well as entries for expenses, income, assets, liabilities, and capital. The journal entries demonstrate the double-entry accounting technique of debiting and crediting different types of accounts according to standard rules. Finally, examples of journal entries are provided that incorporate trade and cash discounts on purchases and sales.

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    © All Rights Reserved
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    Journal Entry

    Uploaded by

    shreyu14796
    118 views7 pages
    The document outlines various types of accounts - personal, real, and nominal accounts. It then provides examples of journal entries for typical business transactions involving the purchase and sale of goods and services, as well as entries for expenses, income, assets, liabilities, and capital. The journal entries demonstrate the double-entry accounting technique of debiting and crediting different types of accounts according to standard rules. Finally, examples of journal entries are provided that incorporate trade and cash discounts on purchases and sales.

    Original Description:

    Journal Entry First step of accounting to record the day to day transaction of business.

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    The document outlines various types of accounts - personal, real, and nominal accounts. It then provides examples of journal entries for typical business transactions involving the purchase and sale of goods and services, as well as entries for expenses, income, assets, liabilities, and capital. The journal entries demonstrate the double-entry accounting technique of debiting and crediting different types of accounts according to standard rules. Finally, examples of journal entries are provided that incorporate trade and cash discounts on purchases and sales.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    118 views7 pages

    Journal Entry

    Uploaded by

    shreyu14796
    The document outlines various types of accounts - personal, real, and nominal accounts. It then provides examples of journal entries for typical business transactions involving the purchase and sale of goods and services, as well as entries for expenses, income, assets, liabilities, and capital. The journal entries demonstrate the double-entry accounting technique of debiting and crediting different types of accounts according to standard rules. Finally, examples of journal entries are provided that incorporate trade and cash discounts on purchases and sales.

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    Journal Entry

    Types of Accounts-

    1. Personal Account:-
    A/c which are related to any person, company, firm, institute etc is called personal A/c

    They are of three types:


    a. Natural personal A/c:
    These accounts are those which are related to living person or persons created by God.
    Ex- Ram A/c, Shyam A/c, Sheela A/c, Mohan A/c etc
    b. Artificial personal A/c:
    Account which are not real person but they are created as a person in the eye of law or
    created by law.
    Ex- Company A/c
    c. Representative A/c:
    Account which represent to any person or used in the place of any person is called
    representative personal A/c
    Ex- O/s a/c, Prepaid A/c. Accrued A/c, Capital A/c, Drawing A/c, Debtors A/c, Creditors
    A/c, Bank A/c etc

    2. Real Account:-
    Account which are related to things, goods or Assets.
    Tangible Assets:
     Goods- Purchase, Sales, Purchase return, Sales return, Stock
     Cash, Land, Building, Plant, Fixtures & Fittings, Furniture, Tools, Equipment, Machineries
    etc

    Intangible Assets:

     Goodwill, Patents, Trademark, Copy write, Licence, Software etc.

    3. Nominal Account:
    Account which are related to service, income, expenditure, profit & loss is called Nominal
    Account.
    Ex- Stationary Exp, Wages, Salary, Dividend received, Interest Received etc

    Rules of Dr.& Cr. / Rules of Journal

    1. Traditional Approach / English Approach


     Personal A/c
    Dr. The Receiver
    Cr. The Giver
     Real A/c
    Dr. What comes in
    Cr. What goes out
     Nominal A/c
    Dr. All expenses & losses
    Cr. All income & gains
    2. Modern Approach / American Approach

    Types of A/c Dr Cr
    Assets A/c Increase Decrease
    Liabilities A/c Decrease Increase
    Capital A/c Decrease Increase
    Expenses / Loss A/c Increase Decrease
    Income / Gain A/c Decrease Increase

    Format of Journal Entry


    Date Particular L/F Dr Cr

    Journal Entries
    1. Business started with cash Rs. 10,000.

    Cash A/c Dr. 10,000


    To Capital A/c 10,000

    2. Business started with cash Rs. 10,000, Furniture Rs. 20,000 & goods Rs. 30,000.

    Cash A/c Dr. 10,000


    Furniture A/c Dr. 20,000
    Stock A/c Dr. 30,000
    To Capital A/c 60,000

    3. Purchase goods Rs. 50,000

    Purchase A/c Dr. 50,000


    To Cash A/c 50,000

    4. Business started with cash Rs. 50,000 deposit into bank.

    Bank A/c Dr. 50,000


    To Capital A/c 50,000

    5. Business started with Rs. 1,00,000 loan taken from bank @ 10% p.a.

    Bank A/c Dr. 1,00,000


    To Bank loan A/c 1,00,000
    6. Business started with loan taking from his friend Dinesh Rs. 80,000.

    Cash A/c Dr. 80,000


    To loan from dinesh A/c 80,000

    7. Business started with cash Rs. 20,000, stock Rs. 15,000, furniture Rs. 10,000, goods Rs.
    12,000 taking from his friend Mohan &Rs. 25,000 borrowed from his brother Raja.

    Cash A/c Dr. 45,000


    Stock A/c Dr. 27,000
    Furniture A/c Dr. 10,000
    To Mohan’s A/c 12,000
    To Raja’s A/c 25,000
    To Capital A/c 45,000

    8. Sold goods Rs. 20,000

    Cash A/c Dr. 20,000


    To Sales A/c 20,000

    9. Bought goods from Mohan Rs. 15,000.

    Purchase A/c Dr. 15,000


    To Mohan’s A/c 15,000
    (Being Good bought from Mohan)

    10. Sold goods to HariRs. 20,000.

    Hari’s A/c Dr. 20,000


    To Sales A/c 20,000

    11. Bought goods from Raman Rs. 12,000 in cash.

    Purchase A/c Dr. 12,000


    To Cash A/c 12,000

    12. Sold goods to kanakRs. 18,000 in cash.

    Cash A/c Dr. 18,000


    To Sales A/c 18,000

    13. Return to Mohan Rs. 1000.

    Mohan’s A/c Dr. 1,000


    To Purchase return A/c 1,000

    14. Return from HariRs. 1500.


    Sales return A/c Dr. 1,500
    To Hari’s A/c 1,500
    15. Raghav purchase goods from us Rs. 12,000.

    Raghav’s A/c Dr. 12,000


    To Sales A/c 12,000

    16. Purchase goods Rs. 10,000 @ 10% trade discount.

    Purchase A/c Dr. 9,000


    To Cash A/c 9,000

    17. Sold goods Rs. 20,000 @ 5% trade discount.

    Cash A/c Dr. 19,000


    To Sales 19,000

    18. Sold goods to Hariharan invoice price Rs. 15,000 @ 10% trade discount.

    Hariharan’s A/c Dr. 13,500


    To Sales A/c 13,500

    19. Purchase goods invoice price Rs. 10,000 from sonu @ 10% trade discount.

    Purchase A/c Dr. 9,000


    To Sonu’s A/c 9,000

    20. Return by Hariharan goods worth Rs. 1,000 invoice price.

    Sales return A/c Dr. 900


    To Hariharan’s A/c 900

    21. Return to sonu goods worth invoice price Rs. 800.

    Sonu’s A/c Dr. 720


    To Purchase return A/c 720

    22. Bought goods Rs. 5,000 @ 10% trade discount & 2% cash discount.

    Purchase A/c Dr. 4,500


    To Cash A/c 4,410
    To Cash discount A/c 90

    23. Sold goods Rs. 8,000 @ 10% trade discount & 2.5% cash discount.

    Cash A/c Dr. 7,020


    Cash discount A/c Dr. 180
    To Sales A/c 7,200
    24. Bought goods Rs. 10,000 @ 10% trade discount & 3% cash discount from hari.

    Purchase A/c Dr. 9,000


    To Hari’s A/c 8,730
    To Cash Discount A/c 270

    25. Sold goods Rs. 15,000 @12% trade discount & 2% cash discount to Ram.

    Ram’s A/c Dr. 12,936


    Cash Discount A/c Dr. 264
    To Sales A/c 13,200

    26. Purchase goods Rs. 10,000 @10% trade discount & 2% cash discount from vijay in cash.

    Purchase A/c Dr. 9.000


    To Cash A/c 8,820
    To Cash Discount A/c 180

    27. Sold goods to Gaurav Rs. 20,000 @ 20% trade discount & 5% cash discount in cash.

    Cash A/c Dr. 15,200


    Cash Discount A/c Dr. 800
    To Sales A/c 16.000

    28. Purchase goods from Mohan Rs. 6,000 @20% Trade Discount & 5% cash dicount and half
    amount paid to him by cheque.

    Purchase A/c Dr. 4,800


    To Mohan’s A/c 2,400
    To Bank A/c 2,280
    To Cash Discount A/c 120

    29. Sold goods to Vijay worth Rs. 20,000 @ 10% trade discount & 5% cash discount and 40%
    amount received by cheque.

    Vijay’s A/c Dr. 10,800


    Cash A/c Dr. 6,840
    Cash Discount A/c Dr. 360
    To Sales A/c 18,000

    30. Order of goods Rs. 10,000 received from karan.

    No entry
    31. Supply goods to karan @10% trade discount according to his order.

    Karan’s A/c Dr. 9,000


    To Sales A/c 9,000

    32. Goods given in charity Rs. 300.

    Charity A/c Dr. 300


    To purchase A/c 300

    33. Goods lost by fire Rs. 1,000.

    Lost by fire A/c Dr. 1,000


    To Purchase A/c 1,000

    34. Goods stolen by employee Rs. 500

    Lost by theft A/c Dr. 500


    To Purchase A/c 500

    35. Goods given in free sample Rs. 800.

    Advertisement A/c Dr. 800


    To Purchase A/c 800

    36. Goods given as a advertisement Rs. 500.

    Advertisement A/c Dr. 500


    To Purchase A/c 500

    37. Goods given to employee as a salary Rs. 1,000.

    Salary A/c Dr. 1,000


    To Purchase A/c 1,000

    38. Rs. 1,000 withdraw for personal use.

    Drawing A/c Dr. 1,000


    To Cash A/c 1,000

    39. Goods of Rs. 1,000 withdraw for domestic use.

    Drawing A/c Dr. 1,000


    To purchase A/c 1,000

    40. School fees paid of his sons Rs.


    Drawing A/c Dr. 500
    To Cash A/c 500
    41. Life Insurance premium paid Rs. 800.

    Drawing A/c Dr. 800


    To Cash A/c 800

    42. Salary paid Rs. 300.

    Salary A/c Dr. 300


    To Cash A/c 300

    43. Commission received from Ajay Rs. 500.

    Cash A/c Dr. 500


    To Commission A/c 500

    44. Salary paid to Jayesh Rs. 900.

    Salary A/c Dr. 900


    To Cash A/c 900

    45. Income tax paid by cheque Rs. 4,000.

    Drawing A/c Dr. 4,000


    To Bank A/c 4,000

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