Simple Journal Entries
Journal Entry
In the age of manual accounting system, business transactions are first noted in a Journal Book. The journal entries are punched in a journal in order by date and are then posted into the proper accounts in General Ledger.
Journal will contain of the following:
- Date of transaction
- Amount & account that will be debited in journal
- amount & account that will be credited in journal
- a short description /narration
Under computerised accounting system environment software will automatically punched business transactions into the general ledger.
List of Journal Entries in Video
- 1. Capital introduced
- 2. Withdrawal from Business
- 3. Purchase of Material
- 4. Sale of Material
- 5. Salary Payment
- 6. Interest Income
1.1. Mr. Modi introduced Rs. 10000/- is the business as capital
| PARTICULARS | DR | CR |
| Cash A/c To Mr. Modi Capital Capital A/c (Capital Introduced) | 10000.00 | 10000.00 |
1.2. Mr. Modi withdraw Rs. 600/- for his personal use
| PARTICULARS | DR | CR |
| Drawing A/c To Cash A/c (Amount withdrawn for personal use) | 600.00 | 600.00 |
1.3. Mr. Modi Purchased goods for Rs. 5000/-
| PARTICULARS | DR | CR |
| Purchase A/c To Cash A/c (Material purchased ) | 5000.00 | 5000.00 |
1.4. Mr Modi sold material for Rs. 6000/-
| PARTICULARS | DR | CR |
| Cash A/c To Sales A/c (Material purchased ) | 6000.00 | 6000.00 |
1.5. Mr Modi paid salary of Rs. 400/- against Salary
| PARTICULARS | DR | CR |
| Salary A/c To Cash A/c (Salary paid ) | 400.00 | 400.00 |
1.6. Interest received Rs. 300/-
| PARTICULARS | DR | CR |
| Cash A/c To interest A/c (Salary paid ) | 300.00 | 300.00 |
