Transactions

Here’s a set of 50 basic accounting transactions with hypothetical amounts for better
understanding:

1. Investment by Owner

1. Owner invests ₹100,000 in cash into the business.

2. Owner contributes equipment worth ₹50,000.
3. Owner adds a building worth ₹500,000 to the business.

2. Cash Sales

4. Sold goods for ₹10,000 in cash.

5. Provided a service for ₹5,000 and received cash.
6. Recorded cash sales of ₹8,000 with a discount of ₹500.

3. Credit Sales

7. Sold goods worth ₹15,000 on credit.

8. Provided services worth ₹7,500 on credit.
9. Customer returned ₹2,000 worth of goods previously sold.
10. Issued a ₹1,000 discount to a credit customer.

4. Cash Purchases

11. Purchased inventory worth ₹12,000 in cash.

12. Purchased office supplies for ₹1,500 in cash.
13. Purchased equipment worth ₹25,000 in cash.

5. Credit Purchases

14. Purchased inventory worth ₹18,000 on credit.

 15. Purchased equipment worth ₹40,000 on credit.
16. Bought raw materials worth ₹5,000 on credit.

6. Payments

17. Paid ₹15,000 as office rent.

18. Paid ₹2,500 for electricity and water.
19. Paid a supplier ₹10,000 for goods purchased earlier on credit.
20. Paid ₹12,000 as employee wages.
21. Paid ₹3,000 for transportation of purchased goods.
22. Paid ₹5,000 as interest on a loan.

7. Receipts

23. Received ₹10,000 from a customer for a credit sale.

24. Earned ₹2,000 as interest income from a bank deposit.
25. Received ₹8,000 as rent from a tenant.
26. Collected an advance of ₹6,000 from a customer.
27. Borrowed ₹50,000 from a bank as a loan.

8. Expenses

28. Recorded depreciation of ₹3,000 on equipment.

29. Paid ₹2,000 for office repairs.
30. Wrote off bad debts of ₹1,000 from a customer.
31. Spent ₹7,000 on advertising.
32. Paid ₹3,500 for insurance.
33. Spent ₹2,000 on staff training expenses.

9. Prepayments

34. Prepaid ₹12,000 for 6 months' office rent.

35. Prepaid ₹6,000 for annual insurance.

10. Accruals
 36. Recorded accrued salaries of ₹8,000.
37. Recorded ₹2,000 as accrued interest payable.
38. Recorded ₹4,500 as accrued service revenue.

11. Drawings

39. Owner withdrew ₹5,000 in cash for personal use.

40. Owner withdrew ₹1,000 worth of inventory for personal use.

12. Taxes

41. Collected ₹1,800 as sales tax from customers.

42. Paid ₹1,800 as sales tax to the government.
43. Recorded ₹10,000 as income tax payable.
44. Paid ₹10,000 as income tax.

13. Loans

45. Took a loan of ₹1,00,000 from a financial institution.

46. Repaid ₹20,000 of the loan principal.
47. Paid ₹5,000 as loan interest.

14. Inventory

48. Adjusted for inventory shrinkage of ₹2,000.

49. Wrote off ₹1,500 worth of damaged inventory.

15. Miscellaneous

50. Recorded a dishonored customer check worth ₹3,000.

Would you like examples of journal entries for any of these transactions?
 Journal Entries
Here are the journal entries for the 50 basic accounting transactions following the dual
aspect concept:

1. Investment by Owner

1. Dr. Cash ₹100,000

Cr. Capital ₹100,000
(Owner invests cash into the business.)

2. Dr. Equipment ₹50,000

Cr. Capital ₹50,000
(Owner contributes equipment.)

3. Dr. Building ₹500,000

Cr. Capital ₹500,000
(Owner adds a building.)

2. Cash Sales

4. Dr. Cash ₹10,000

Cr. Sales ₹10,000
(Sold goods for cash.)

5. Dr. Cash ₹5,000

Cr. Service Revenue ₹5,000
(Provided services for cash.)

6. Dr. Cash ₹7,500

Dr. Discount Allowed ₹500
Cr. Sales ₹8,000
(Cash sales with a discount.)
3. Credit Sales

7. Dr. Accounts Receivable ₹15,000

Cr. Sales ₹15,000
(Sold goods on credit.)

8. Dr. Accounts Receivable ₹7,500

Cr. Service Revenue ₹7,500
(Provided services on credit.)

9. Dr. Sales Returns ₹2,000

Cr. Accounts Receivable ₹2,000
(Customer returned goods.)

10. Dr. Discount Allowed ₹1,000

Cr. Accounts Receivable ₹1,000
(Issued discount to a credit customer.)

4. Cash Purchases

11. Dr. Inventory ₹12,000

Cr. Cash ₹12,000
(Purchased inventory for cash.)

12. Dr. Office Supplies ₹1,500

Cr. Cash ₹1,500
(Purchased office supplies for cash.)

13. Dr. Equipment ₹25,000

Cr. Cash ₹25,000
(Purchased equipment for cash.)

5. Credit Purchases

14. Dr. Inventory ₹18,000

Cr. Accounts Payable ₹18,000
(Purchased inventory on credit.)
 15. Dr. Equipment ₹40,000
Cr. Accounts Payable ₹40,000
(Purchased equipment on credit.)

16. Dr. Raw Materials ₹5,000

Cr. Accounts Payable ₹5,000
(Bought raw materials on credit.)

6. Payments

17. Dr. Rent Expense ₹15,000

Cr. Cash ₹15,000
(Paid office rent.)

18. Dr. Utilities Expense ₹2,500

Cr. Cash ₹2,500
(Paid utilities.)

19. Dr. Accounts Payable ₹10,000

Cr. Cash ₹10,000
(Paid a supplier.)

20. Dr. Wages Expense ₹12,000

Cr. Cash ₹12,000
(Paid employee wages.)

21. Dr. Freight-In ₹3,000

Cr. Cash ₹3,000
(Paid transportation charges for goods.)

22. Dr. Interest Expense ₹5,000

Cr. Cash ₹5,000
(Paid loan interest.)

7. Receipts

23. Dr. Cash ₹10,000

Cr. Accounts Receivable ₹10,000
 (Received cash from a credit customer.)

24. Dr. Cash ₹2,000

Cr. Interest Income ₹2,000
(Received interest income.)

25. Dr. Cash ₹8,000

Cr. Rent Income ₹8,000
(Received rent.)

26. Dr. Cash ₹6,000

Cr. Unearned Revenue ₹6,000
(Collected advance from a customer.)

27. Dr. Cash ₹50,000

Cr. Bank Loan ₹50,000
(Borrowed a loan from a bank.)

8. Expenses

28. Dr. Depreciation Expense ₹3,000

Cr. Accumulated Depreciation ₹3,000
(Recorded depreciation on equipment.)

29. Dr. Repairs Expense ₹2,000

Cr. Cash ₹2,000
(Paid for office repairs.)

30. Dr. Bad Debts Expense ₹1,000

Cr. Accounts Receivable ₹1,000
(Wrote off bad debts.)

31. Dr. Advertising Expense ₹7,000

Cr. Cash ₹7,000
(Spent on advertising.)

32. Dr. Insurance Expense ₹3,500

Cr. Cash ₹3,500
(Paid for insurance.)
 33. Dr. Training Expense ₹2,000
Cr. Cash ₹2,000
(Paid for staff training.)

9. Prepayments

34. Dr. Prepaid Rent ₹12,000

Cr. Cash ₹12,000
(Prepaid office rent.)

35. Dr. Prepaid Insurance ₹6,000

Cr. Cash ₹6,000
(Prepaid insurance premium.)

10. Accruals

36. Dr. Salaries Expense ₹8,000

Cr. Salaries Payable ₹8,000
(Recorded accrued salaries.)

37. Dr. Interest Expense ₹2,000

Cr. Interest Payable ₹2,000
(Recorded accrued interest.)

38. Dr. Accounts Receivable ₹4,500

Cr. Service Revenue ₹4,500
(Recorded accrued revenue.)

11. Drawings

39. Dr. Drawings ₹5,000

Cr. Cash ₹5,000
(Owner withdrew cash.)

40. Dr. Drawings ₹1,000

Cr. Inventory ₹1,000
 (Owner withdrew inventory.)

12. Taxes

41. Dr. Cash ₹1,800

Cr. Sales Tax Payable ₹1,800
(Collected sales tax.)

42. Dr. Sales Tax Payable ₹1,800

Cr. Cash ₹1,800
(Paid sales tax.)

43. Dr. Income Tax Expense ₹10,000

Cr. Income Tax Payable ₹10,000
(Recorded income tax payable.)

44. Dr. Income Tax Payable ₹10,000

Cr. Cash ₹10,000
(Paid income tax.)

13. Loans

45. Dr. Cash ₹100,000

Cr. Loan Payable ₹100,000
(Took a loan.)

46. Dr. Loan Payable ₹20,000

Cr. Cash ₹20,000
(Repaid loan principal.)

47. Dr. Interest Expense ₹5,000

Cr. Cash ₹5,000
(Paid loan interest.)

14. Inventory Adjustments

 48. Dr. Inventory Shrinkage ₹2,000
Cr. Inventory ₹2,000
(Adjusted inventory shrinkage.)

49. Dr. Loss on Damaged Inventory ₹1,500

Cr. Inventory ₹1,500
(Wrote off damaged inventory.)

15. Miscellaneous

50. Dr. Accounts Receivable ₹3,000

Cr. Bank ₹3,000
(Recorded a dishonored check.)

This approach ensures all transactions adhere to the dual aspect concept: every debit has a
corresponding credit, maintaining the balance in accounting.
 Ledger Accounts

Cash Account

Particulars Type Dr (INR) Cr (INR) Balance (INR)

Capital Dr 100000 INR - 100000 INR

Sales Dr 10000 INR - 110000 INR

Bank Loan Dr 50000 INR - 160000 INR

Accounts Receivable Dr 10000 INR - 170000 INR

Rent Cr - 15000 INR 155000 INR

Wages Cr - 12000 INR 143000 INR

Advertising Cr - 7000 INR 136000 INR

Capital Account

Particulars Type Dr (INR) Cr (INR) Balance (INR)

Cash Cr - 100000 INR 100000 INR

Equipment Cr - 50000 INR 150000 INR

Building Cr - 500000 INR 650000 INR

Sales Account

Particulars Type Dr (INR) Cr (INR) Balance (INR)

Cash Cr - 10000 INR 10000 INR

Accounts Receivable Cr - 15000 INR 25000 INR

Sales Returns Dr 2000 INR - 23000 INR

Accounts Receivable

Particulars Type Dr (INR) Cr (INR) Balance (INR)

Sales Dr 15000 INR - 15000 INR

Service Revenue Dr 7500 INR - 22500 INR

Sales Returns Cr - 2000 INR 20500 INR

Cash Cr - 10000 INR 10500 INR

Discount Allowed Cr - 1000 INR 9500 INR

Equipment Account

Particulars Type Dr (INR) Cr (INR) Balance (INR)

Capital Dr 50000 INR - 50000 INR

Cash Dr 25000 INR - 75000 INR

Accounts Payable Dr 40000 INR - 115000 INR

Accumulated Depreciation Cr - 3000 INR 112000 INR

Rent Expense Account

Particulars Type Dr (INR) Cr (INR) Balance (INR)

Cash Dr 15000 INR - 15000 INR

Loan Payable Account

Particulars Type Dr (INR) Cr (INR) Balance (INR)

Cash Cr - 50000 INR 50000 INR

Cash Dr 20000 INR - 30000 INR

Sales Returns Account

Particulars Type Dr (INR) Cr (INR) Balance (INR)

Accounts Receivable Dr 2000 INR - 2000 INR

Inventory Account

Particulars Type Dr (INR) Cr (INR) Balance (INR)

Cash Dr 12000 INR - 12000 INR

Accounts Payable Dr 18000 INR - 30000 INR

Inventory Shrinkage Cr - 2000 INR 28000 INR

Loss on Damaged Inventory Cr - 1500 INR 26500 INR

Wages Expense Account

Particulars Type Dr (INR) Cr (INR) Balance (INR)

Cash Dr 12000 INR - 12000 INR

Bank Loan Account

Particulars Type Dr (INR) Cr (INR) Balance (INR)

Cash Cr - 100000 INR 100000 INR

Cash Dr 20000 INR - 80000 INR