JOURNAL ENTRIES
Meaning of a Journal: A Journal is the primary book of accounts in which
transactions are first recorded in a chronological order, i.e., as they are
entered into. Transactions are recorded in the Journal book from the
accounting voucher that is prepared on the basis of source documents,
i.e., cash memo, invoices, purchase bills, etc.)
Rules of Debit & Credit:
ACCOUNT DEBIT ( Dr. ) CREDIT ( Cr. )
Assets Account Increase Decrease
Liabilities Account Decrease Increase
Capital Account Decrease Increase
Income Account Decrease Increase
Expense Account Increase Decrease
Format of journal entries
Date Particulars l/f Dr. Amount Cr. Amount
JOURNAL ENTRIES
Journal Entries: -
1) Capital invested into the business of Rs 1,00,000.
Date Particulars l/f Dr. Amount Cr. Amount
Cash A/c -------------------Dr. 1,00,000
To Capital A/c ------------------Cr. 1,00,000
Cash A/c Capital A/c
Asset Liability
Increase Increase
Dr. Cr.
2) Loan taken from the bank of Rs 50,000.
Date Particulars l/f Dr. Amount Cr. Amount
Cash A/c -----------------------Dr. 50,000
To Bank A/c -------------------Cr. 50,000
Cash A/c Bank A/c
Asset Liability
Increase Increase
Dr. Cr.
3) Purchase made of RS 20,000.
Date Particulars l/f Dr. Amount Cr. Amount
Purchase A/c -----------------------Dr. 20,000
To Cash A/c -------------------Cr. 20,000
JOURNAL ENTRIES
Purchase A/c Cash A/c
Expense Asset
Increase Decrease
Dr. Cr.
4) Sales made on Rs 5,000.
Date Particulars l/f Dr. Amount Cr. Amount
Cash A/c -----------------------Dr. 5,000
To Sales A/c -------------------Cr. 5,000
Cash A/c Sales A/c
Asset Income
Increase Increase
Dr. Cr.
5) Furniture purchase Rs 20,000.
Date Particulars l/f Dr. Amount Cr. Amount
Furniture A/c -------------------Dr. 20,000
To Cash A/c ------------Cr. 20,000
Furniture A/c Cash A/c
Asset Asset
Increase Decrease
Dr. Cr.
JOURNAL ENTRIES
6) Depreciation charge on furniture Rs 2,000.
Date Particulars l/f Dr. Amount Cr. Amount
Depreciation A/c -------------Dr. 2,000
To Furniture A/c ---------Cr. 2,000
Depreciation A/c Furniture A/c
Expenses Asset
Increase Decrease
Dr. Cr.
7) Salary paid on Rs 5,000.
Date Particulars l/f Dr. Amount Cr. Amount
Salary A/c -----------------------Dr. 5,000
To Cash A/c -------------------Cr. 5,000
Salary A/c Cash A/c
Expenses Asset
Increase Decrease
Dr. Cr.
8) Purchase made from Hari of Rs 20,000.
Date Particulars l/f Dr. Amount Cr. Amount
Purchase A/c ----------------------Dr. 20,000
To Hari A/c ----------------Cr. 20,000
JOURNAL ENTRIES
Purchase A/c Hari A/c
Expense Liability
Increase Increase
Dr. Cr.
9) Sales made to Raz of Rs 50,000.
Date Particulars l/f Dr. Amount Cr. Amount
Raz A/c ----------------------Dr. 50,000
To Sales A/c ----------------Cr. 50,000
Raz A/c Sales A/c
Asset Income
Increase Increase
Dr. Cr.
10) Amount deposited on the bank of Rs 50,000.
Date Particulars l/f Dr. Amount Cr. Amount
Bank A/c ----------------------Dr. 50,000
To Cash A/c ----------------Cr. 50,000
Bank A/c Cash A/c
Asset Asset
Increase Decrease
Dr. Cr.
