Journal Entries Examples
If 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Cash is withdrawn from the business for Rs.3000.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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