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    Journal Entry

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    Ashish Dhakal
    The document discusses various journal entries used in accounting. It provides examples of entries for starting a business, drawing capital, purchases and returns, sales and returns, expenses and incomes, discounts, depreciation, bad debts, goods given as charity or samples, and losses covered or not covered by insurance claims. Common debits include expenses, losses, assets, and discounts while common credits include incomes, gains, liabilities, and discounts. The purpose is to explain the basic structure and rationale for different types of accounting journal entries.

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    Journal Entry

    Uploaded by

    Ashish Dhakal
    360 views4 pages
    The document discusses various journal entries used in accounting. It provides examples of entries for starting a business, drawing capital, purchases and returns, sales and returns, expenses and incomes, discounts, depreciation, bad debts, goods given as charity or samples, and losses covered or not covered by insurance claims. Common debits include expenses, losses, assets, and discounts while common credits include incomes, gains, liabilities, and discounts. The purpose is to explain the basic structure and rationale for different types of accounting journal entries.

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    The document discusses various journal entries used in accounting. It provides examples of entries for starting a business, drawing capital, purchases and returns, sales and returns, expenses and incomes, discounts, depreciation, bad debts, goods given as charity or samples, and losses covered or not covered by insurance claims. Common debits include expenses, losses, assets, and discounts while common credits include incomes, gains, liabilities, and discounts. The purpose is to explain the basic structure and rationale for different types of accounting journal entries.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    360 views4 pages

    Journal Entry

    Uploaded by

    Ashish Dhakal
    The document discusses various journal entries used in accounting. It provides examples of entries for starting a business, drawing capital, purchases and returns, sales and returns, expenses and incomes, discounts, depreciation, bad debts, goods given as charity or samples, and losses covered or not covered by insurance claims. Common debits include expenses, losses, assets, and discounts while common credits include incomes, gains, liabilities, and discounts. The purpose is to explain the basic structure and rationale for different types of accounting journal entries.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
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    The passage discusses different types of journal entries like commencement of business, purchase, sales, expenses, incomes, etc.

    The different types of journal entries discussed are commencement of business, drawing of capital, purchase and purchase return, sales and sales return, purchase and sales of other assets, expenses and incomes.

    The different types of discounts mentioned are trade discount and cash discount.

    Accounting - XI

    Journal Entry
    The methods of journal entries are mentioned below:

    Transactions
    Commencement of Business:
    Debit ( Expense + Loss + Assets) = Credit ( Incomes + gains + liability) Cash A/c Dr. Furniture A/c Dr. Bank A/c Dr. Stock A/c Dr. To, Capital A/c (Being started business..)

    Debit

    Credit

    XXXX XXXX XXXX XXXX XXXX

    Drawing of Capital:
    Drawing A/c Dr. To, Cash/Bank A/c To, Purchase A/c (goods) (Being drawn by owner). XXXX XXXX XXXX

    Purchase & Purchase return:


    a. For purchase Purchase A/c Dr. To, Cash/Bank A/c To, Creditors A/c (Being purchase goods). Drawing deduct the value of capital. b. For purchase return Name of Suppliers (receiver) A/c Dr. To, Purchase return A/c (Being returned goods to ..) * Purchase return deducts the value of purchase. XXXX XXXX XXXX

    XXXX XXXX

    Sales & Sales return:


    a. For Sales Cash/Bank A/c Dr. Debtors A/c Dr. To, Sales A/c XXXX XXXX XXXX

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    Accounting - XI (Being sold goods .) b. For Sales return Sales return A/c Dr. To, Name of giver/debtor XXXX

    XXXX

    Purchase & Sales of other assets:


    a. Purchase of assets: Name of assets A/c Dr. To, Cash/Bank A/c To, Creditors A/c (Being purchased .) b. For Sales of assets: Cash/Bank A/c Dr. Debtors A/c Dr. To, Name of assets A/c (Being sold.) For example: Purchased furniture of Rs. 5000 and payment made by cheque. Furniture A/c Dr. To, Bank A/c (Being purchased furniture.) *Credit customers are called debtors. *Debtors is a kind of current assets. XXXX XXXX XXXX

    XXXX XXXX XXXX

    5000 5000

    Expenses & Incomes:


    a. For expenses Expense A/c Dr. To, Cash/Bank A/c (Being paid). b. For incomes Cash/Bank A/c Dr. To, Incomes A/c (Being received ). XXXX XXXX

    XXXX XXXX

    Discount:
    a. Trade discount: Trade discount is a reduction value in the list price of goods being purchased.
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    Accounting - XI

    For Purchased: Purchased A/c Dr To, Name of giver A/c (Being purchased of goods at trade discount). Trade discount for sales: Name of receiver A/c Dr. To, Sales A/c (Being sold goods .) b. Cash discount: When we provide discount: Cash/Bank A/c Dr. Discount A/c Dr. To, Name of givers A/c (Being ) When we receive discount: XXXX Name of receiver A/c Dr. To, Cash/Bank A/c To, Discount (Being ) XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

    Interest on Capital (Expense)


    Interest on capital A/c Dr. To, Capital A/c (Being paid interest on capital). XXXX XXXX

    Depreciation (Expense)
    Depreciation A/c Dr. To, Name of assets A/c (Being depreciation charged on name of assets.) XXXX XXXX

    Bad debts and bad debts recovered:


    a. For bad debts: Bad debts A/c Dr. XXXX

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    Accounting - XI To, Debtors A/c (Being bad debts written off.) b. For bad debts recovered: Cash A/c Dr. To, Bad debts recovered A/c (Being bad debts recovered.) XXXX

    XXXX

    XXXX

    Goods given as charity or distributed as sample:


    a. For charity Charity A/c Dr. To, Purchase A/c (Being goods given as charity). b. For sample Advertisement A/c Dr. To, Purchase A/c (Being goods distributed as sample). XXXX XXXX

    XXXX XXXX

    Lost of goods by some reasons and acceptance of insurance claims:


    a. Goods lost by and insurance company not accepted the claim. Goods lost A/c Dr. To, Purchase A/c (Being ..) b. Goods lost by . and insurance company accepted the full claim. Insurance company A/c Dr. To, Purchase A/c (Being .). c. Goods lost by . and insurance company accepted the partial claim. Insurance company A/c Dr. Goods lost by .. A/c Dr. To, Purchase A/c (Being ..). XXXX XXXX

    XXXX XXXX

    XXXX XXXX XXXX

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