Simple Credit Journal Entries
Credit transaction means any transaction by the terms of which the payment for business transaction is to be made at a future date.
For credit transaction we directly debit or credit in the name of person or company
Credit journal entries refer to a transaction in which the amount payable or receivable will be paid or received at a later date. E.g. Credit sales and Credit purchases.
List of Journal Entries in Video
- Capital introduced
- Withdrawal from business
- Purchase of Material
- Sale of Material
- Salary Payment
- Interest Income
2.1. Mr. Bharat introduced Rs. 20,000/- is the business as capital
| PARTICULARS | DR | CR |
| Cash A/c To Mr. Bharat’s Capital A/c (Capital Introduced) | 20,000.00 | 20,000.00 |
2.2. Mr. Bharat withdrawn Rs. 1,200/- for his personal use
| PARTICULARS | DR | CR |
| Drawing A/c To Cash A/c (Amount withdrawn for personal use) | 1,200.00 | 1,200.00 |
2.3. Mr. Bharat purchased goods of Rs 10,000.00 from Ramesh on credit.
| PARTICULARS | DR | CR |
| Purchase A/c To Ramesh A/c (Material purchased ) | 10,000.00 | 10,000.00 |
2.4. Goods of Rs. 12,000 sold to Mr. Shyam on credit.
| PARTICULARS | DR | CR |
| Shyam,s A/c To Sales A/c (Material purchased ) | 12,000.00 | 12,000.00 |
2.5. Salary for last month of the year of Rs. 800 paid in the next financial year.
| PARTICULARS | DR | CR |
| Salary A/c To Salary Payable A/c (Salary paid ) | 800.00 | 800.00 |
2.6. Interest amount of Rs. 600 for the last month of year received in next financial year.
| PARTICULARS | DR | CR |
| Interest Receivable A/c To interest A/c (Salary paid ) | 600.00 | 600.00 |
