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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