Journal Entries Examples

Journal Entries Examples In AccountingIf you do not know about journal Entries, then kindly read the article about Accounting Journal Entries so that you may better understand this topic and know how to write a journal entry.

It must be very important that when we pass the journal entry always record the entry from the point of business and not from the point of view of owner. In other words we must follow the Business Entity Concept.





Below are the Bookkeeping Journal Entries Examples and these are passed according to Double Entry Bookkeeping. These are given below:

1.   When Cash for Rs.60000 is invested into the company businesses, then the following Entry is passed:

Cash a/c  60000

        Capital a/c  60000


2.   When Cash is withdrawn from the business for Rs.3000.

Drawings a/c   3000

                 Cash a/c  3000

3. Purchased Office Furniture for Cash Rs.70000.

Purchases / Office Furniture a/c  70000

                                              Cash a/c   70000

Note: if Office Furniture is purchased for resale purposes then it is called Purchases. Otherwise, it is treated as Asset of the Company Businesses.





4. Purchased Office Furniture From Mr. A For Rs.90000.

Purchases / Office Furniture a/c 90000

                                            Mr. A  90000

Note: In the above Transaction we purchased Office Furniture on Credit basis rather than on Cash Basis.


5. Sold Office Furniture to Mr. B For Rs.1,50000.

Cash a/c   1,50000

              Sales / Office Furniture a/c   1,50000


Note: Again If office furniture is purchased for resale purposes then it is called Sales otherwise we can treat it as an Asset for the company businesses.


6. Sold Office Furniture to Mr. B For Rs. 1,70000 on account.

Cash a/c  1,70000

         Sales / Office Furniture a/c   1,70000


7.   Paid Rent of the office Building For Rs.15000.

Rent a/c 15000

       Cash a/c 15000





8.   Rent Received From the Customers for Rs.20000.

Cash a/  20000

       Rent Received a/c 20000


9. Paid Expenses in Advance For Rs.10000.


Prepaid Expenses a/c  10000

                                  Expenses a/c  10000


Note: It is an adjusting Entry. You can read article about "Adjustments in Final Accounts" in detail in order to better understand about these entries.





10.  When there is need loan for new business, then business may take loan from Banks, then For Example, company businesses take loan of Rs.800000 form Banks, then following entry is passed.

Bank  a/c   800000

        Bank Loan a/c   800000


11. Repayments of the Loan to Banks of Rs.80000.


  Bank Loan a/c 80000

                    Bank a/c 80000


12. Cash Received From Customer (Mr.X) of Rs.10000.

Cash a/c 10000

         Mr.X 10000


So it is all about Journal Entries Examples. Now hopefully, you will learn the above mentioned topic.

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