Journal Entries
Different types of Journal Entries:
1. Started/Commencement/Invested in a Business:
All assets A/c
To capital A/c
(Being started business with…)
2. Purchase of Assets:
- Purchase of Assets in cash:
Purchase or Assets A/c
To cash or bank A/c
(Being purchase of assets on cash)
- Purchase of Assets on credit:
Purchase or Assets A/c
To creditors A/c
(Being purchase of assets on credit)
3. Sales of Assets:
- Sales of Asset on cash:
Cash A/c
To sales or assets A/c
(Being sales of assets on cash)
- Sales of asset on credit:
Debtors A/c
To sales or assets A/c
(Being sales of asset on credit)
4. Cash Deposited into Bank:
Bank A/c
To cash A/c
(Being cash deposited into bank)
5. Cash withdrawn from bank:
a) For office or business use:
Cash A/c
To bank A/c
(Being cash withdrawn from the bank for office use)
b) For personal or private use:
Drawing A/c
To bank A/c
(Being cash withdrawn from the bank for personal use)
6. Drawing of Assets:
Drawing A/c
To assets A/c
(Being drawing of assets)
7. Purchase Return / Return Outward:
a) Purchase Return on cash:
Cash A/c
To purchase return/assets A/c
(Being purchase return on cash)
b) Purchase Return on credit:
Creditors A/c
To assets A/c
(Being purchase return on credit)
8. Sales return/ Return inward:
a) Sales return in cash:
Sales return / assets A/c
To cash A/c
(Being sales return on cash)
b) Sales return on credit:
Sales return/assets A/c
To debtors A/c
(Being sales return on credit)
9. Goods lost by fire/accident/theft, etc:
a) No claim admitted by the insurance company:
Goods lost by fire A/c
To purchase A/c
(Being goods lost by fire and no claim admitted by the insurance company)
b) Partial claim admitted by the insurance company:
Cash A/c
Goods purchased A/c
To purchase A/c
(Being goods lost by the fire or accident and insurance company admitted claim partially)
c) Full claim admitted by the insurance company:
Cash A/c
To purchase A/c
(Being goods lost by the fire and insurance company admitted the claim fully)
10. Expenses paid:
Expenses head A/c
To cash A/c
(Being expenses paid)
11. Income Received:
Cash / Bank A/c
To income head A/c
(Being income received)
12. Cash paid to creditors:
Creditors A/c
To cash or bank A/c
(Being cash paid to creditors)
13. Cash received from debtors:
Cash or bank A/c
To debtors A/c
(Being cash received from debtors)
14. Interest on Capital:
Interest on capital A/c
To capital A/c
(Being interest on capital)
15. Interest on drawing:
Drawing A/c
To interest on drawing A/c
(Being interest on drawing)
16. Depreciation of Assets:
Depreciation A/c
To assets head A/c
(Being depreciation on assets)
17. Appreciation on assets:
Assets head A/c
To appreciation A/c
(Being appreciation on assets)
18. Bad debts:
Provision for bad debt A/c
To debtors A/c
(Being bad debts on debtors)
19. Provision for bad debt:
Profit and loss A/c
To provision for bad debt A/c
(Being provision for bad debt)
20. Bad debts recovered:
Cash A/c
To debtors A/c
(Being bad debts recovered)
21. Outstanding / Due/ Payable / Accrued Expenses:
Expenses head A/c
To outstanding expenses A/c
(Being outstanding expenses)
22. Prepaid / Advance/ Unexpired Expenses:
Advance expenses head A/c
To cash A/c
(Being advance expenses paid)
23. Outstanding / Due/ Receivable / Accrued Income:
Outstanding income head A/c
To income head A/c
(Being outstanding income)
24. Pre-received / Advance / Unearned Income:
Cash A/c
To advance income head A/c
(Being advance income)
25. Provision no longer required:
Provision no longer required A/c
Written back A/c
To profit and loss A/c
(Being provision no longer required written back)
26. Prepaid expenses expired:
Prepaid expenses expired A/c
To prepaid expenses A/c
(Being prepaid expenses expired)
27. Goods given as charity:
Charity A/c
To purchase A/c
(Being goods given as charity)
28. Goods distributed as free sample:
Advertisement A/c
To purchase A/c
(Being goods distributed as free sample)
