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A Transaction Should Be Journalized Only At The Time Of What? A Transaction should be Journalized only if it actually occurs i.e. at a time when it is actually occurred. All transactions are recorded in support of Source Documents such as Voucher, Invoice, Receipts, etc., which provides evidence of a transaction taken place between two or among more than two parties involved in a business transaction. For Example, On 13 th June, 2021, the ABC company received cash of Rs. 50000 for investment made in a Project of an Investment company, XYZ Company. Then the company issued a receipt, as an evidence of cash receipt, then this transaction is journalized on 13 th January, 2021 as it took place on that particular date. So, we record a business transaction at a time when it takes place and journalized it either in the Special Journal or in the Journal Proper / General Journal .

Journal Entry For Travelling Expenses Paid To Salesman / Sales Manager A salesman promotes company’s products through launching different campaigns and giving offers to buyers during his visit to different places. For meeting travelling expenses of salesman, who needs to go to these places and running these campaigns, the company paid travelling expenses to salesman. The journal entry to record for travelling expenses of Rs. 25000 paid to salesman for the period is shown below:                                                         Travelling Expenses a/c  25000                                                                               ...

Journal Entry For Cash Withdrawn By Owners From Business For Personal Use As Well As For Office Use Here, we record Journal Entries related to two aspects which are explained below: (i) Cash Withdrew From Business For Private Expenses / Personal Uses When the sole owners withdraws cash from business for their own personal use or private use, then Drawings Account is created for such transaction in order to treat this separately from business as it is related with the owners own personal use. Suppose, Mr. A withdrew Cash Rs. 50000 from his business for his own private expenses, then the entry to record is given below:                                                                     Drawings a/c  50000                             ...

Cash Withdrew From Business For Private Expenses / Personal Use There may be, from time to time, the owners need to withdraws cash from business for their own personal use or private expenses. Such withdrawal is called Drawings in accounting. The entry to record for cash (e.g. Rs. 80000) withdrew from business for private expenses is shown below:                                                                           Drawings a/c  80000                                                                                                      C...

Journal Entry For The Payment Of Tuition Fees From Student’s Parents To Educational Institution When the parents paid tuition fees (e.g. Rs. 70000) to school, college, university or any educational institution for their students / childs, then from the point view of parents, following entry is recorded as shown below:                                                                     Tuition Fees Expense a/c  70000                                                                                                                 Cash ...

Is It Possible To Show Capital On Asset Side Of A Balance Sheet? Usually, the Capital Account Is Shown On Liabilities & Equity Side of a balance sheet. However, there are possibilities due to which  Capital Account is appeared on asset side of balance sheet. In that case, the capital account is called a negative capital account and it is not a good sign for the Stability of A Business as it has less capital to invest, to meet daily obligations and ultimately the business will surely face a heavy loss or even may be closed at the end. Such possibilities are shown below: (i) Due To Net Loss As the business suffered a Loss during the accounting period, so we get negative capital. In such case, the owners of the business must do serious steps to stabilize their businesses. For example, Mr. A is a sole proprietor has negative capital during the period. From his financial statements, we get the following information:               ...

Journal Entry For Tuition Fess Received / Earned And Deposited Into Bank Here, we will study about, ” Received Tuition Fees, which is an example of Service Revenue Account , by Educational Institutions i.e., Schools, Colleges, Universities, Academies, etc., From Students And Then Deposited Tuition Fees Into The Bank Accounts Of these Educational Institutions” . Tuition Fees Received On Account / On Credit At the start of the accounting period i.e., on 1 st September, 2020, when the educational institution started to provide educational services to students on account of Rs. 50000 and the students did not pay the tuition fees, then a Fees Receivable or Accounts Receivable account is created for school or education institution, as still the payment has not been received from students and it is a Current Asset for school institution. So, from the point view of school, following entry is recorded: (i) (Assuming Accrual Basis of Accounting System )       ...