Journal Entries
Analyzing all business transactions and recording them as journal entries is the first step that shows account name, amount and the accounts are recorded debit side or credit side in accounting.
Example
The following example illustrates how to record journal entries in company’s books of accounts.
Transactions
Apr 1, started a business with Rs.200000 of capital
Apr 2 paid cash of Rs.10000 towards purchase of equipment
Apr 3, an advance rent amount paid of Rs.40000
Apr 5, provided services to X traders and received amount of Rs.30000
Apr 8, purchased Rs.30000 worth of goods from Y Enterprises
Apr 10, issued a cheque for payment of electricity charges of Rs.2000
Apr 15, issued a cheque for payment of telephone charges of Rs.3000
Apr 18, paid amount to Y Enterprises towards goods purchased on April 8
Apr 20, paid wages to its employees of Rs.4000
Apr 22, received an advance payment from John & Co of Rs.20000
Apr 24, advance paid to Raj Enterprises of Rs.30000
Apr 26, purchased 2 Laptops each@ Rs.40000 from Sanjay computers
Apr 27, cash paid towards stationary expenses of Rs.3000
Apr 28, issued a cheque to Sanjay computers towards 2 laptops purchased on April 26
Apr 30, miscellaneous expenses paid of Rs.2500
Journal entries for the above transactions
Related Topics
Related Pages
- Fixed Asset Entries
- Payroll Journal Entries
- Accrued Expenses
- Prepaid Income
- Accounting Basics
- Debits and Credits
- Chart of Accounts
- Bookkeeping
- Petty Cash
- Bank Reconciliation
- Accounts Payable Process
- Accounts Receivable Process
- Prepaid Expenses
- Discount Allowed and Discount Received
- Adjusting Entries
- Depreciation
- Current Liabilities and Current Assets