How can make the journal entries

In the accounting education, making of journal is very important. Because without making journal entries, we can not calculate the result of business in the form of profit and loss account and balance sheet. So please care fully get the education of making journal.

Journal accepts the rules of double entry system. Rule for making journal

Every rule has two parts

  • First rule for personal accounts

  1. Who is receiver = Debit
  2. Who is giver = Credit
  • 2nd Rule for real accounts

  1. What comes in business = Debit
  2. What goes from business = Credit

  • 3rd Rule for nominal accounts

  1. All the expenses and losses = Debit
  2. All the incomes and gains = Credit

  • Practical example for making journal →

Suppose Ram purchase goods of Rs. 10000 from Sham @ 10% trade discount on credit. After 15 days. Ram pays full settlement of all money with @ 10% cash discount.

Journal Entries in the books of Ram

Because goods comes in Ram’s business so Purchase account will debit with Rule 2nd and its first part

Because Sham is giver of goods so he is giver and account with his name will be credit with rule 1st and its second part after this we will pass the journal entry

Purchase account Dr. 9000

To Sham Account 90000

  • After 15 days will pass second journal entry in ram books

Sham Account ( He is the receiver ) Dr. 9000

To Cash Account ( it goes out of business ) 8100

To Discount Received ( It is the income of business 900


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Accounting Education: How can make the journal entries
How can make the journal entries
Accounting Education
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