Solution of Problem Which is Faced in Teaching Journal Entry in Accounts


Many accounting teachers may face following problem in teaching of journal entry in accounts.

Which account should be debited or credited

Basic rules of double entry system  are three and every rule have further two parts. But some time teacher can not teach perfectly these rules to 10+1 commerce students about which account should be debited or credited. I can explain this problem with following example.


Mrs. Rekha buys goods from Mrs. Sulekha of Rs. 500000 with cash.

It is possible that accounting teacher will write three rules of double entry on the black/ white board and then write its journal entry


Purchase account Dr. 500000
 
Cash account Cr.             500000 


Accounting teacher can argue that goods are being come in business so, it will be debited and cash is going from business, so it will be credited in journal entry.

But student may confuse or puzzle. He asks his accounting teacher. Why has he not debited to Mrs. Rekha account? Because goods are received by Mrs. Rekha. First rule's first part says who is receiver will be debited. This is the problem which is often faced in teaching journal entry in accounts.

I can help teacher to solve this problem. Persuade your student affectionately just like below

My dear student, it is very good that you are using your brain. You have asked me question. You are confused which rule of double entry will apply first or second for debiting or crediting account. Dear, first of all one important thing is that businessman can not be debited or credited himself in his own accounting books. You can ask me. Why can businessman not be debited or credited? Because business is separate from businessman. So, if we have to pass the journal entry in the books of Rekha, then even Rekha has received the goods, then we can not debited owner of business. Moreover, there is not a specific person, it may possible the goods can be received by employee of Rekha's business or even relative of Rekha can receive the goods. So, second rule is more powerful than first rule of double entry. What comes in business must be debited. So, I have debited Purchase account. I have also credited cash. If we purchase the goods with cash or via cheque. There is no need to know who is the giver of money . Forget his name. In one day, it is possible that you are dealing with 1000000000000000000000000000 people for purchasing or selling. Record their names only in books, if you have to pay or get money. Otherwise your accounts book will become just list of customers or suppliers. If you are interested to know customer. Determine the aim of your life as  salesman not accountant. So, if Rekha has purchased goods with cash, then who only credit what goes from business and that is cash. So, cash will be credited.

COMMENTS

Comments on this Website
.
Share above Content to Your Friends



Name

access account accountant Accounting accounting definitions accounting ebook Accounting education accounting procedure accounting process outsourcing Accounting Software advance advertising africa Amalgamation amendments announcements Annuity assets audit auditing Australia B.Com. balance sheet bank Bank reconciliation banking basic accounting BBA benefits best bill black money blog bloggers book keeping bookkeeping Branch Accounting - full tutorial budget Budget variance business businessman CA calculator canada capital capital budgeting career cash cash book cash flow statement Chiense children china class coaching coins college commerce commerce students company computer computer accounting conference Contact vinod kumar corporate accounting cost cost accounting cost center cost centre CPA credit credit card cs currency data Debit and credit debit cards debt debtor degree depletion depreciation documents dollar domain Downloads Dubai e-accounting earning education Education Loans email employee EPF ERP euromoney examination excel excise duty expenses facebook factor of loan fans feature fifo FII fiji finacle finance Financial financial accounting fire insurance flickr flow forensic forex formula france fraud free fun function fund GAAP GDP gdr germany gold goodwill goodwill accounting google google apps google apps google base google buzz google calendar Google docs google finance google fusion tables google talk govt. GST guide health Hindi Hindi Language history holding company How to treat FBT in Tally 9 HRA ICAI ICAWI ICICI Bank IFRS income income statement Income Tax India indian railway Indonesia inflation inflation accounting infographics information inspiration insurance insurance accounting interest international Internet Introduction of Tally 9 inventory investment invoice IT Japan Job costing journal entries Kalculate keyboard kindle kuwait laptop law LBT learning lease lecture ledger leducation Leverage Analysis liabilities lifo linkedin loan logical point loss loss of profit M.Com. m.phil malaysia management accounting manual accounting manufacturing account market marketing mastercard material MBA MCA media migration mobile money ms word ms. excel multi currency in tally 9 Multicurrency Accounting mutual fund national security new and sacrifice ratio new york times new zealand news NGO nonprofit-accounting North Georgia Mountains NPV NSE odbc office oman online application online accounting otcei pakistan parents pay pal pdf pie chart pie chart of income pnb podcast ppf presentation price privacy policy prize money prof. vinod kumar profit profit and loss account project management provision purchase puzzles quickbooks Quote quotes quotes of svtuition rating agency ratio analysis RBI readers real estate rectification of errors remote control reports reserves responsibility accounting retirement revenue Revenue reserves review risk rupees salary sale saudi arabia saving sbi scholarship school SEBI security service tax share share trading Shares shri lanka singapore sms social accounting society solution South Africa stock stock exchange structure student students study subsidiary company svtuition swiss bank tally tally 9 Tally 7.2 Tally 9 Tally.ERP 9 tanzania tax Tax Accounting TDS teacher teaching technology test testimonial testimonials thailand tips trading trading on equity transaction trend trial balance tuition twitter UAE UGC - NET Commerce UK United Arab Emirates university usa valuation VAT Video Voucher and vouching wikipedia working capital youtube
false
ltr
item
Accounting Education: Solution of Problem Which is Faced in Teaching Journal Entry in Accounts
Solution of Problem Which is Faced in Teaching Journal Entry in Accounts
http://3.bp.blogspot.com/_DJEIRrK4tl4/S2RnSTh35DI/AAAAAAAAEpE/ejJo-WGeHWU/s400/teaching+new+idea.PNG
http://3.bp.blogspot.com/_DJEIRrK4tl4/S2RnSTh35DI/AAAAAAAAEpE/ejJo-WGeHWU/s72-c/teaching+new+idea.PNG
Accounting Education
http://www.svtuition.org/2010/01/problem-faced-in-teaching-journal-entry.html
http://www.svtuition.org/
http://www.svtuition.org/
http://www.svtuition.org/2010/01/problem-faced-in-teaching-journal-entry.html
true
2410664366776677676
UTF-8
Not found any lecture VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at vinod@svtuition.org for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock