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Journal Entries Examples

To study the journal entries example is obviously a good way to get thorough knowledge of journal entries. Just learn the rules of double entries and to make some journal entries of simple purchase and sale transactions is not enough for becoming the master in accounting. You should know every type of transactions and journal entries. You also know how to pass the journal entry, what account will be debited and what account will be credited in this journal entry.


Following are some examples of  translations and Journal Entries, its analysis is done on the basis of rules of double entry system:

1. Cash brought in by proprietor as capital Rs. 30000

a) What comes in business will be debited

Cash has come in business; cash account will be debited in journal entry.

b) Who is giver will be credited

Proprietor is giver of cash to business but he has business motive and he gives the money to business as capital.

Journal Entry

Cash Account Debit 30, 000


Proprietor’s capital Account Credit 30,000

2. Goods purchased on credit from Madan Lal Rs. 5,000

a) What comes in business will be debited

Goods have come in business, so its financial value will be debited with the name of purchase account.

b) Name of person is given from whom we bought the goods on credit, so Ist rule’s second part will be applied.

Who is giver, will be credited.

Madan lal is giver, so its account will be credited.

Purchase account debit 5000

Madan Lal account credit 5000

3. Furniture purchased for cash Rs. 10000

a) What comes in business will be debited. In this transaction, furniture came in business, so we will open furniture account in the debit side of journal entry.

b) Cash is also asset and we paid for purchasing of furniture. 2nd rule’s second part will be applied.

Furniture Account Debit 10,000

Cash Account Credit 10,000

4. Goods sold on credit to Dev Raj Rs. 1600

a) Dev Raj is receiver of goods, so his personal account will be debited.

b) Goods go out, so, goods or sale account will be credited.

Dev Raj Account Debit 1600

Sale Account Credit 1600

5. Goods purchased for cash Rs. 4500

a) Goods come in, so goods or purchase account will be debited

b) Cash goes out, so cash account will be credited.

Purchase account debit 4500

Cash account credit 4500

6. Goods sold for cash Rs. 2100

a) Cash comes in, so cash account will be debited.

b) Goods go out, so goods or sale account will be credited.

Cash account debit 2100

Sale account credit 2100

7. Rent paid for shop to landlord 3000

a) Rent is an item of expenses, so it will be debited.

b) Cash is an item of asset and it goes out, so it will be credited.

Rent Account Debit 3000

Cash Account Credit 3000

8. Commission received in cash 2000

a) Cash comes in, so cash account will be debited.

b) Commission is an item of income, so commission account will be credited.

Cash Account Debit 2000

Commission Account Credit 2000

9. Cash deposited into bank 5000

a) Bank is receiver of cash, so bank account will be debited.

b) Cash goes out, so cash account will be credited.

Bank Account Debit 5000

Cash Account Credit 5000

10. Cash withdrawn from bank for office use Rs. 2000

a) Cash comes in the business, so cash account will be debited.

b) Bank is the giver, so bank account will be credited.

Cash Account Debit 2000

Bank Account Credit 2000

11. Cash drawn by proprietor from business for personal use Rs. 3000

a) Proprietor is the receiver of cash, but business will give him as drawing which is decrease in his capital, so proprietor’s drawing account will be debited.

b) Cash goes out, so cash account will be credited.

Drawing Account Debit 3000

Cash Account Credit 3000

12. Goods given as charity Rs. 1000

a) Charity is an expense of business, so it will be debited.

b) Goods go out, so goods or purchase account will be credited.

Charity Account Debit 1000

Purchase Account Credit 1000

13. Bad Debts written off Rs. 500

a) Bad debt is loss of business due to not paying the amount by our debtors, so it will be debited.

b) There is decrease in debtor. We are applying what goes from business, debtor is also our asset, if he does not pay, and it means this asset has gone from business, so its account will be credited.

Bad Debt Account Debit 500

Debtor Account Credit 500

14. Bad debts recovered in cash Rs. 300

a) Cash comes in, so cash account will be debited.

b) Bad debts recovered are an income, so its account will be credited.

Cash Account Debit 300

Bad Debts Recovered Account Credit 300

15. Carriage paid on machinery ( expenses on purchase of asset ) Rs. 1000

a) Carriage on purchase of machinery is part of cost of machinery, so machinery account will be debited.

b) Cash goes out, so cash account will be credited.

Machinery Account Debit 1000

Cash Account Credit 1000

16. Depreciation on fixed assets Rs. 500

a) Depreciation on fixed assets is the loss of business, and every loss will be debited.

b) There is a decrease in asset and we will apply what goes from business on it. So, asset account will be credited.

Depreciation Account Debit 500

Fixed Asset Account Credit 500

17. Carriage paid on the behalf of buyer Rs. 1000

a) This is not our expenses, but this is increase our current asset and its name is debtor, so we will apply what comes in rule on it.

b) Cash goes out, so cash account will be credited.

Debtor account Debit 1000

Cash Account Credit 1000

18. Goods given as free samples Rs. 1500

a) Goods are given for advertising, advertising is an expense of business, and so advertising account will be debited.

b) Goods go out at the cost price, so goods or purchase account will be credited.

Advertising Account Debit 1500

Purchase Account Credit 1500

19. Interest allowed on capital Rs. 600

a) Interest is an expense of business, so it will be debited.

b) There is an increase in the amount of capital. Capital is liability account, so increase in the amount of capital will be also shown in the credit side of journal entry.

Interest on capital Account Debit 600

Capital Account Credit 600

20. Interest charged on drawings Rs. 500

a) Decrease in capital or increase in drawing will be debited.

b) Interest on drawing is an income of business.

Drawing Account Debit 500

Interest on drawing account Credit 500

21. Bank charges or interest charged by bank Rs. 200

a) Bank charges are the expenditures of business, so it will be debited.

b) There is decrease in bank balance, so bank account will be credited.

Bank charge Account Debit 200

Bank account Credit 200


22. Goods lost by fire Rs. 800

a) Goods lost by fire are the loss of business, so loss by fire account will be debited.

b) There is decrease in goods or stock at cost, so purchase account will be credited.

Loss by Fire Account Debit 800

Purchase Account Credit 800

23. Goods insured and a claim is admitted by insurance company in full or in part.

a) Insurance company will be our debtor. Transaction has increase in debtors because we have to get money from insurance company. So, this account will be debited.

b) Decrease in loss by fire, so this account will be credited.

Insurance company Account Debit XXXX

Loss by Fire Account Credit XXXX

24. Loan taken Rs. 1,00,000

a) Cash comes in, so cash account will be debited.

b) Lender is giver, so his loan account will be credited.

Cash Account Debit 1, 00,000

Lender’s loan Account Credit 1,00,000

25. Interest paid on loan. Rs. 1000

a) Interest is an expense of business, so it will be debited.

b) Cash goes out, so it will be credited.

Interest on loan Account Debit 1000

Cash Account Credit 1000

26. Interest on loan due but not paid in cash. Rs. 500

a) Interest is an expense of business, so it will be debited.

b) Increase in creditors will be credited in journal entry.

Interest on loan Account Debit 500

Loan or Creditor Account 500

27. Investment purchased Rs. 50,000

a) Asset in the form of investment comes in, so investment account will be debited.

b) Cash goes out, so its account will be credited.

Investment Account Debit 50000

Cash Account Credit 50000

28. Cash stolen from office. Rs. 6000

a) Cash stolen from office is loss of business, so this account will be debited.

b) Cash goes out, so its account will be credited.

Loss by Theft Account Debit 6000

Cash Account Credit 6000

29. Cash paid to a creditor in full settlement ( When cash discount is received) Amount due to Madan Lal Rs. 5000 paid him Rs. 4950 in full settlement.

a) Decrease in creditors = Debit

b) Decrease in cash = Credit

c) Discount received is income of business = credit

Madan Lal Account Debit 5000

Cash Account Credit 4950

Discount Received Account Credit 50

30. Cash received from a debtor in full settlement (When cash discount is allowed). Amount receivable from Dev Raj Rs. 1600, received from him Rs. 1570.

a) Increase in cash = Debit

b) Discount allowed is the loss of business = Debit

c) Decrease in debtors = credit

Cash Account Debit 1570

Discount Allowed Account Debit 30

Dev Raj Account Credit 1600



Important 


Recently, I have published my journal entry ebook which is the complete solution of all your problems of journal entries. Now, it is available in my online shop for sale. If you are interested to buy, you can buy  at here


See Also 

Read it in Hindi Language

COMMENTS

: 181
  1. THIS IS GOOD ARTICLE FOR ACCOUNTS STUDENTS #

    ReplyDelete
  2. very good and simply understand all entries.

    ReplyDelete
  3. This is a good help of students

    ReplyDelete
  4. Mian Muhammad Sheraz.

    Thats accounting techniques is very Helpful for Every Commerce students

    ReplyDelete
  5. it is very nice......

    ReplyDelete
  6. samatha,

    this is very helpful for accounting students

    ReplyDelete
  7. Awesome Article...Awesome Article...

    ReplyDelete
  8. nice job it will really help the accountimg student good work keep it up sir

    ReplyDelete
  9. It helped, better than books.

    ReplyDelete
  10. Very nice tution class
    Thanks

    ReplyDelete
  11. this is good for mba student for non commerce background student

    ReplyDelete
  12. It's really nice....

    ReplyDelete
  13. these entries are very suitable for all

    ReplyDelete
  14. it is realy gud.helped a lot in gaining better understanding.

    ReplyDelete
  15. every accounting students who get confused in entries should read this........................

    ReplyDelete
  16. very clear and simple...

    ReplyDelete
  17. Hi Every body this is enough for Accounts interviews.Very good and everybody can easily understood........

    ReplyDelete
  18. a good and a clear guidance.good examples too

    ReplyDelete
  19. Students Can Gain Accounting Knowledge Easily

    ReplyDelete
  20. thanks , a good and very helpful knowledge

    ReplyDelete
  21. cnt i get some tough general entries..???

    ReplyDelete
  22. it is very easy and helpful to understand accounts

    ReplyDelete
  23. good one understod please pass the entries of outstanding entries

    ReplyDelete
  24. I thank the editor of this artical i got my basics right of journals

    ReplyDelete
  25. extremely useful..thanks

    ReplyDelete
  26. very nice....................................................................

    ReplyDelete
  27. vry good.......really helpful......try to give more examples

    ReplyDelete
  28. Really helpful...

    ReplyDelete
  29. the explanation is really good. Please include Prepaid, O/S expense entries and Unearned, Accrued Income entries as well....

    ReplyDelete
  30. Too Good. Thanks

    ReplyDelete
  31. at least a diagram showing journal entries may help some of who ddn't do accounting

    ReplyDelete
  32. Its really refreshing our knowledge. Thank you for publishing

    ReplyDelete
  33. superb, its very helpful.

    ReplyDelete
  34. veryyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyy good

    i like this kind of approach in studies

    i am loving it

    ReplyDelete
  35. it is really help-full ... thanks alot.

    ReplyDelete
  36. its very good and easy method to understand journal with examples ..thanks a lot

    ReplyDelete
  37. I had forgotten all journal entries. but now it is prepared again.
    thanks for it

    ReplyDelete
  38. thanks for sharing your knoweledge its very helpfull to understand

    ReplyDelete
  39. Very helpful and makes easy to understand........ publish such kind of more examples. Thanx

    ReplyDelete
  40. very very helpful 4 even those with no accounting background knowledge! Thanx and pliz some more e.gs. Thomas

    ReplyDelete
  41. thanx u so mush i like it. It help me in accounting very well so thanx & help us this away all time........

    ReplyDelete
  42. its very helpful for a quick revision.....thanks for the way of presentation....

    ReplyDelete
  43. nice.. and helpful...

    ReplyDelete
  44. interesting way studying

    ReplyDelete
  45. its very helpful. Thanks

    ReplyDelete
  46. very useful article. thanks!!

    ReplyDelete
  47. very useful and easy to understand

    ReplyDelete
  48. thanks its very useful for students

    ReplyDelete
  49. very useful for exercise

    ReplyDelete
  50. very good and understandable

    ReplyDelete
  51. tougher entries i want to know

    ReplyDelete
  52. Very helpful for all Commerce students...............

    ReplyDelete
  53. very helpful even for MBA grad's

    ReplyDelete
  54. very very very helpful god bless u for updating this..its very helpful thank u so much..

    ReplyDelete
  55. Thanks its very usefull

    ReplyDelete
  56. can u please post some tough examples

    ReplyDelete
  57. superb awesome..





    thanxx



    pls post many articles like this pls..






    it was very helpful

    ReplyDelete
  58. its more help full for all commerce students,accountant etc.......
    i request to more journal entries example...............

    ReplyDelete
  59. thanks..its really helpful

    ReplyDelete
  60. i also realy help ful 4r meee ,,.,.,.

    ReplyDelete
  61. nice for freshar of accounts....

    ReplyDelete
  62. Very Very Helpfull For All Commerce Students . And Entries Are So Easy Better Than All Accounting Books .

    ReplyDelete
  63. NICE FOR JOURNAL ENTRIES FROM ,PRAFULL SAYKHEDE

    ReplyDelete
  64. nce... easily understandable

    ReplyDelete
  65. its helpful for us

    ReplyDelete
  66. its really helpfull for commerce students

    ReplyDelete
  67. nice class thank u for refresh

    ReplyDelete
  68. very clear...and understanding

    ReplyDelete
  69. This is very helpfull to understad non-accounting people. To know the basics of accounts

    ReplyDelete
  70. Very Nice and easy to understand!

    ReplyDelete
  71. great job... thanks

    ReplyDelete
  72. its really vry helpfull n easy to understand

    thanks


    ReplyDelete
  73. easy to understand!
    thank u

    ReplyDelete
  74. nice............................ i like it

    ReplyDelete
  75. thanx...and vey helpful.

    ReplyDelete
  76. THANK YOU IT IS VERY HELPFUL TO MEEEEEEEEEE

    ReplyDelete
  77. great article , i m very thankful to whom who have made it . really helped me a lot

    ReplyDelete
  78. really fantastic keep it up

    ReplyDelete
  79. This is a very helpfull of commerce student & also any branch of student to learn that accounting entries.

    ReplyDelete
  80. Thank You Sir, for your effort. This is a real help for students like me

    ReplyDelete
  81. This is very helpfull to understad non-accounting people. To know the basics of accounts.
    Very Nice and easy to understand!

    Madhavi

    ReplyDelete
  82. thanks sir , it is very helpful for commerce students .

    ReplyDelete
  83. thank u for giving good examkples for entries

    ReplyDelete
  84. awesome.....sir keep it up.......

    ReplyDelete
  85. awesome.sir keep it up........

    ReplyDelete
  86. thank you very much sir!!!!!!!!!!!!...........

    ReplyDelete
  87. good,more helful for accunting student

    ReplyDelete
  88. thank youuuuuuuuuuuuuuu so much.............its very very very helpfull .......................

    ReplyDelete
  89. Hi this is Sohel, i have gone through all the entries which is very helpful for me thank you so much.

    ReplyDelete
  90. After reading these one can easily get the concept of journal entries... Thanks for such a good examples.

    ReplyDelete
  91. Thaks... for such good examples

    ReplyDelete
  92. Thank you so much ,Very helpful

    ReplyDelete
  93. simple and clear...practise these enough to succeed in accounts first step

    ReplyDelete
  94. simple and straight to the point...thnx

    ReplyDelete
  95. this is simple method of accounts entry's thank you for explain that type of entry's

    ReplyDelete
  96. SIMPLE AND CLEAR..........THANKS ALOTT

    ReplyDelete
  97. beautifully covered almost of the basic stuff

    ReplyDelete
  98. Awesome! Explanation , Sometimes simple things make feel very pleasant. Its a one stop solution of accounting basics.

    Thanks, Dinesh

    ReplyDelete
  99. Thank You Sir for sharing your knowledge it is very help full to me

    ReplyDelete
  100. this is really good for new learner of account or who is not from accounting backgroun

    ReplyDelete
  101. Great Job........ This post has cleared so many doubts which the teachers could not clear in 10 lectures . I appreciate . Keep it up.

    ReplyDelete
  102. Very good presentation

    ReplyDelete
  103. nice guidelines and clearly able to understand basic accounting entries.

    ReplyDelete
  104. thank you sir ...this is really helpful...

    ReplyDelete
  105. thank you sir .this is really helpful..

    ReplyDelete
  106. Its really nice.. Helped A Lot..!!

    ReplyDelete
  107. its really helped me in refreshing my journal knowledge

    ReplyDelete
  108. you are good keep the good works going, thanks you very much...gain knowledge

    ReplyDelete
  109. Thank you sir.it's really very nice

    ReplyDelete
  110. thanks.........................

    ReplyDelete
  111. omggg thnk u sooo mch sir vrry vry helpful.forever indebted to u.god bless.

    ReplyDelete
  112. very helpful thankss :))
    keep it up

    ReplyDelete
  113. these entries are well to understand a accounting student to understand it

    ReplyDelete
  114. Thats accounting techniques is very Helpful for Every Commerce students

    ReplyDelete
  115. Very helpful.. please include Prepaid and Outstanding journal entries. Also how to treat when TAX is involved in purchasing and in Sales transactions..

    ReplyDelete
  116. hi
    what about journal entry of opening and puting money in brokerage account in order to start trading in stocks and securities

    ReplyDelete
  117. very help full to revise the subject

    ReplyDelete
  118. Sale of tree , how pass entry which is not a regular sale

    ReplyDelete
  119. thank you sir ...this is really helpful...

    ReplyDelete
  120. Thank you very much. Keep up your good work.

    ReplyDelete
  121. Thank you, it was very helpful.

    ReplyDelete
  122. Best and simple examples . thanks a lot.

    ReplyDelete
  123. very nice...
    may I know what is the entry for amount due from debtors and amount due to creditors

    ReplyDelete
  124. good sir.. thank you so much for your valuable information..I think this is enough to get success in interview

    ReplyDelete
  125. purchase a motor car in exchange of goods rs.20000 and cash rs.30000 pass the journal entry

    ReplyDelete
  126. Please help me with this.
    An accounts officer has wrongly reported Accumulated Depreciation of 245,000.00 as 36,126.00 and also failed to report the corresponding Depreciation charged for the year in the income statement. How do I correct it?

    ReplyDelete
  127. Have 1 query.... if a partner joining business without capital... then what would be the journal entry.... or its No entry... as I heared that without capital a partner can't join business. Please solve the query

    ReplyDelete
  128. Sir, I am an iocl distributor for lpg gas,iocl deducts amount from our ledger directly.what entry should be passed?

    ReplyDelete
  129. Very Good Example For Any Students And Me
    Thank You. Sir/Madam

    ReplyDelete
  130. Very Very Helpfull For All Commerce Students . And Entries Are So Easy Better Than All Accounting Books .

    ReplyDelete
  131. Very useful. Thanks for the page.

    ReplyDelete
  132. really sir it help me lot
    very very thankful to you.

    ReplyDelete
  133. A mobile of Rs.1500 Purchased against exchange of goods of Rs.1000
    Please solve this questio

    ReplyDelete
  134. Thanks for sharing such a pleasant thinking, post is fastidious,
    thats why i have read it completely

    ReplyDelete
  135. Very interesting topic, appreciate it for posting.

    ReplyDelete
  136. Prepping for an interview. Thanks alot

    ReplyDelete
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Accounting Education: Journal Entries Examples
Journal Entries Examples
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Accounting Education
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