journal entries -- group 1--- final
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8/7/2019 JOURNAL ENTRIES -- Group 1--- final
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Presented by :Presented by :
Saurajeet Swain, Vidya Vijayan,Saurajeet Swain, Vidya Vijayan,
Prajakta Desai, Prasad Prajakta Desai, Prasad J Jadhav,adhav,
Prasad Bahadkar and Vishal Shah Professor : Mr. Nishant GargPrasad Bahadkar and Vishal Shah Professor : Mr. Nishant Garg
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Contentsy Book Keeping
y Journal
y Format of Journaly Debit and Credit
y Journal Entries
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8/7/2019 JOURNAL ENTRIES -- Group 1--- final
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Examples:-
Accounting is a process of recording, Classifying, Summarizing and analyzingthe financial transactions.
Non Financial Transaction Financial Transaction
Mother Cooking food for her Son Buying a Car
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Journal
y Journal is a book of PRIME ENTRY or ORIGINALENTRY .
y This is so because as soon as the transaction takes placeit is first recorded in the journal.
y Journal is also known as daily book because in journalwe record the day to day transactions date wise.
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Format of Journal
Da
te Pa
rticula
rs LF Debit CreditRs. P. Rs. P.
Journal entries in the books of ___________ for the period _________ .
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DE
BIT -Debit indicates benefit received by that
account and its written on the left hand side of account . The account which receives benefit isknown as DEBIT.
CR EDIT -
Credit indicates benefit given by thataccount and its written on the right hand side of account . The account which gives the benefit isknown as CREDIT.
At any time the debit must be equal to credit and the credit must be equal todebit.
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Liabilities A mt Assets A mt
Capital 3,50,000 Machinery 1,00,000
Less: Drawings (50,000) 3,00,000 Investments 10,000
Bank Loan @12% 50,000 Building 1,00,000Interest on bank loan 2000 Furniture 10,000
Bills Payable 1,00,000 Cash 22,000
Creditors 50,000 Bank 80,000
Bank O/D @ 12% 10,000 Debtors 90,000
Closing Stock 1,00,000
5,12,000 5,12,000
Balance sheet As on 31st Dec 2010
Super Six company Ltd
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Journal Entries in the books of Super Six company Ltd for the period 31st Jan 2011
Date Particulars LF Debit A mtRs.
Credit A mtRs.
1st
Jan 11 Purchase A/c Dr. 9000To Cash A/c 4050
To Discount A/c 450
To Suresh A/c 4500
(Being goods purchased at 10% trade discount and10% cash discount and paid half the amount.)
On 1st January 2011, purchased goods from Suresh Rs. 10,000 at 10% tradediscount and 10% cash discount and paid half amount to Suresh.
Logic Applied:
Goods comes in, Asset increases Suresh (creditors) comes in, LiabilitiesincreaseCash goes out, Asset decreases
JournalEntries
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Journal Entries in the books of Super Six company Ltd for the period 31st
Jan 2011
Date Particulars LF Debit A mt
Rs.
Credit A mt
Rs.
2nd Jan 11 Ram A/c Dr. 2700
Cash A/c Dr. 2430
Discount A/c Dr. 270
To Sales A/c 5400
(Being goods sold @ 10% trade and cash discount.)
On 2nd January 2011, Sold goods worth Rs.6000 to Ram 10% trade discountand 10% cash discount and received half the amount from him.
Logic Applied:
Goods goes out, Asset decreasesRam (debtors) comes in, Assetsincrease
Cash comes in, Asset increase
JournalEntries
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Journal Entries in the books of Super Six company Ltd for the period 31st Jan 2011
Date Particulars LF Debit A mtRs.
Credit A mtRs.
3rd Jan 11 Salaries A/c Dr. 4000
Insurance premium A/c Dr. 3000
Travelling exp A/c Dr. 2000
Stationery A/c Dr. 1000
To Cash A/c 10,000
(Being Expenses incurred and paid by cash.)
On 3rd January 2011, paid salaries Rs. 4000, insurance premium Rs.2500 butpaid 3000, travelling exp Rs. 2ooo, bought stationery of Rs. 1000.
Logic Applied:
Expenses increases, P/L is debited
Cash goes out, Asset decreases
JournalEntries
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Journal Entries in the books of Super Six company Ltd for the period 31st Jan 2011
Date Particulars LF Debit A mtRs.
Credit A mtRs.
4th Jan 11 Suresh A/c Dr. 4500
To Bills payable A/c 4500
(Being Bills drawn for balance amount for purchasesmade.)
On 4th January 2011, Suresh drawn bill on us for balance amount .
Logic Applied:
Bills payable increases, Liabilities increases
Creditors decreases, Liabilities decreases
JournalEntries
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Journal Entries in the books of Super Six company Ltd for the period 31st Jan 2011
Date Particulars LF Debit A mtRs.
Credit A mtRs.
5th Jan 11 Prepaid Insurance A/c Dr. 500
To Insurance premium A/c 500
(Being Insurance premium paid for next month in
advance.)
On 5th January 2011, Prepaid insurance amount paid for next month Rs. 500.
Logic Applied:
Prepaid insurance increases, Assets increases
JournalEntries
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Journal Entries in the books of Super Six company Ltd for the period 31st Jan 2011
Date Particulars LF Debit A mtRs.
Credit A mtRs.
6th Jan 11 Bank Loan A/c Dr. 50000
Interest A/c Dr. 2000
To Cash A/c 52000
(Being bank loan repaid with O/s Interest.)
On 6th January 2011, Bank loan repaid Rs. 50,000 with O/S interest of Rs.2000.
Logic Applied:
Cash goes out, Assets decreases
JournalEntries
Bank loan decreases, Liabilities decreases 14
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Journal Entries in the books of Super Six company Ltd for the period 31st
Jan 2011
Date Particulars LF Debit A mtRs.
Credit A mtRs.
8th Jan 11 Profit and loss A/c Dr. 1000
To Purchase A/c 1000
(Being Goods lost by fire.)
On 8th Jan 11, goods worth Rs. 1000 are uninsured and lost by fire.
JournalEntries
Date Particulars LF Debit A mtRs.
Credit A mtRs.
8th Jan 11 Insurance Claim A/c Dr. 1000
To Purchase A/c 1000
(Being Goods lost by fire claimed and admitted by insurance co.)
On 8th Jan 11, goods worth Rs. 1000 are fully insured and the insurancecompany has admitted the claim in full.
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Journal Entries in the books of Super Six company Ltd for the period 31st Jan 2011
Date Particulars LF Debit A mtRs.
Credit A mtRs.
8th Jan 11 Insurance claim A/c Dr. 400Profit and loss A/c Dr. 600
To Purchase A/c 1000
(Being Goods lost by fire and only 40% claim wasadmitted by the insurance company..)
On 8th January 2011, goods worth Rs. 1000 insured, were lost by fire but theinsurance company has admitted the claim of Rs. 400 only .
JournalEntries
Cont.
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Journal Entries in the books of Super Six company Ltd for the period 31st Jan 2011
Date Particulars LF Debit A mtRs.
Credit A mtRs.
9th Jan 11 Drawings A/c Dr. 500
To purchase A/c 500
(Being goods withdrawn for personal use.)
On 9th January 2011, goods withdrawn for personal use Rs. 500 .
Logic Applied:
Drawings increases, Assets increases Purchases decreases, Assets decreases
JournalEntries
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Journal Entries in the books of Super Six company Ltd for the period 31st Jan 2011
Date Particulars LF Debit A mtRs.
Credit A mtRs.
10th Jan 11 Advertisement A/c Dr. 1000
To Cash A/c 1000
(Being Advertisement expenses paid .)
On 10th January 2011, Paid advertisement expenses to Best advertisement company Rs. 1000 .
Logic Applied:
Cash goes out, Assets decreases
JournalEntries
Expenses increases, charged to P/L A/c debit side 18
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Journal Entries in the books of Super Six company Ltd for the period 31st Jan 2011
Date Particulars LF Debit A mtRs.
Credit A mtRs.
11th Jan 11 Cash A/c Dr. 8000
Profit and loss A/c Dr. 2000
To Furniture A/c 10000
(Being furniture sold for a loss of Rs. 2000 .)
On 11th January 2011, old furniture of Rs.10,000 sold for Rs. 8000.
Logic Applied:
Furniture goes out, Assets decreases
JournalEntries
Cash increases, Assets increases 19
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Journal Entries in the books of Super Six company Ltd for the period 31st Jan 2011
Date Particulars LF Debit A mtRs.
Credit A mtRs.
12th Jan 11 Investment A/c Dr. 2060
To Cash A/c 2060
(Being Investments purchased .)
On 12th January 2011, Purchased investments worth Rs. 2000 and paid forBrokerage Rs. 60 .
Logic Applied:
Cash goes out, Assets decreases
JournalEntries
Investment increases, Assets increases 20
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Journal Entries in the books of Super Six company Ltd for the period 31st Jan 2011
Date Particulars LF Debit A mtRs.
Credit A mtRs.
13th Jan 11 Advertisement A/c Dr. 300
To Purchases A/c 300
(Being Goods distributed as free samples.)
On 13th January 2011, goods distributed as free samples Rs. 300 .
Logic Applied:
Purchases decreases, Assets decreases Advertisement is an expenses
JournalEntries
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Journal Entries in the books of Super Six company Ltd for the period 31st Jan 2011
Date Particulars LF Debit A mtRs.
Credit A mtRs.
15th Jan 11 Advertisement A/c Dr. 300
To Purchases A/c 300
(Being Goods distributed as free samples.)
On 15th January 2011, goods distributed as charity Rs. 300 .
Logic Applied:
Purchases decreases, Assets decreases Advertisement is an expenses
JournalEntries
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Journal Entries in the books of Super Six company Ltd for the period 31st Jan 2011
Date Particulars LF Debit A mtRs.
Credit A mtRs.
16th Jan 11 Depreciation A/c Dr. 1000
To Machinery A/c 1000
(Being Goods distributed as free samples.)
On 16th January 2011, Depreciation on machinery @ 1%.
Logic Applied:
JournalEntries
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Journal Entries in the books of Super Six company Ltd for the period 31st Jan 2011
Date Particulars LF Debit A mtRs.
Credit A mtRs.
17th Jan 11 Lost by theft A/c Dr. 6000
To Cash A/c 6000
(Being cash got stolen from office.)
On 17th January 2011, Cash Stolen from office Rs. 6000 .
Logic Applied:
Cash goes out, Assets decreases
JournalEntries
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Journal Entries in the books of Super Six company Ltd for the period 31st Jan 2011
Date Particulars LF Debit A mtRs.
Credit A mtRs.
19th Jan 11 Sales Return A/c Dr. 500
To Ram A/c 500
(Being goods returned by ram Rs. 500)
19th Jan 11 Bills Payable A/c Dr. 500
To Purchase Return A/c 500
(Being Goods returned to Suresh.)
On 19th January 2011, Ram returned goods of Rs. 500 being defective , the samebeing returned to Suresh.
Logic Applied:
Debtors decreased by Rs. 500 Creditors decreased byRs.500
JournalEntries
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Journal Entries in the books of Super Six company Ltd for the period 31st Jan 2011
JournalEntries
Date Particulars LF Debit A mtRs.
Credit A mtRs.
20th Jan 11 Profit and loss A/c Dr. 5000
To Provision for Bad an Doubtful debts A/c 5000
(Being provision made for debtors for last year.)
n 20th January 2011, Provision for bad debts made s. 5000.
Logic Applied:
Expenses increases, P/L increases
Debtors decreases, Asset decreases
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Journal Entries in the books of Super Six company Ltd for the period 31st Jan 2011
JournalEntries
Date Particulars LF Debit A mtRs.
Credit A mtRs.
22nd Jan 11 Cash A/c Dr. 1,00,000
To Capital A/c 1,00,000
(Being additional capital introduced to business)
22nd Jan 11 Machinery A/c Dr. 44,ooo
To Cash A/c 44,000
(Being New Machinery purchased and wages paid toinstall it)
On 22nd January 2011, introduced further capital Rs. 1,00,000. Machinery purchased worth Rs. 40,000 out the capital and paid Rs. 4000 to install it.
Logic Applied:
Cash comes in, Asset increases
Capital comes in, liabilities increase
Machinery comes in, Asset increase
Cash goes out, Asset decreases 27
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Journal Entries in the books of Super Six company Ltd for the period 31st Jan 2011
JournalEntries
Date Particulars LF Debit A mtRs.
Credit A mtRs.
23rd Jan 11 Capital A/c Dr. 3000
To Interest on capital A/c 3000
(Being Interest paid to partners .)
On 23rd January 2011, Interest on capital paid to partners @ 1% Rs. 3000.
Logic Applied:
Liability decrease by Rs.3000 for the firm for current month wheninterest is added to the capital
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Journal Entries in the books of Super Six company Ltd for the period 31st Jan 2011
JournalEntries
Date Particulars LF Debit A mtRs.
Credit A mtRs.
24th Jan 11 Drawings A/c Dr. 2500
To Interest on drawings A/c 2500
(Being Interest charged on drawings of partners .)
On 24th January 2011, Interest on drawings charged to partners @ 5% Rs. 2500 .
Logic Applied:Asset increase by Rs.2500 for the firm for current month wheninterest is added to the Drawings.
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Journal Entries in the books of Super Six company Ltd for the period 31st Jan 2011
JournalEntries
Date Particulars LF Debit A mtRs.
Credit A mtRs.
25th Jan 11 Cash A/c Dr. 1000
To Accrued interest A/c 1000
(Being Accrued interest of 2010 received in 2011 .)
On 25th January 2011, Accrued interest on investments of last year Rs. 1000.
Logic Applied:
Cash comes in, Assets increases
Accrued interest decreases , Assets decreases
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Journal Entries in the books of Super Six company Ltd for the period 31st Jan 2011
JournalEntries
Date Particulars LF Debit A mtRs.
Credit A mtRs.
27th Jan 11 Interest on O/D A/c Dr. 1000
To Bank A/c 1000
(Being interest charged on O/D .)
On 27th January 2011, Bank charged interest on overdraft A/c @ 1% per month.
Logic Applied:
Bank decreases , Assets decreases
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Journal Entries in the books of Super Six company Ltd for the period 31st Jan 2011
JournalEntries
Date Particulars LF Debit A mtRs.
Credit A mtRs.
29th Jan 11 Income Tax A/c Dr. 1000
To Cash A/c 1000
(Being Income Tax paid .)
On 29st January 2011, Income Tax paid to government Rs. 1000 .
Logic Applied:
Cash decreases, Assets decreases
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Journal Entries in the books of Super Six company Ltd for the period 31st Jan 2011
JournalEntries
On 30th January 2011, sent a telegram to Mr. Manish to supply goods of Rs.7500/- immediately and the charges for telegram was Rs.30/-.
Date Particulars LF Debit A mtRs.
Credit A mtRs.
30th Jan 11 Postage & Telegram A/c Dr. 30
To Cash A/c 30
(Being expenses incurred for placing an order of
goods)
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Logic Applied:
Cash decreases, Assets decreases
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Thank You
Best of Luck next Group
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