Examples of Journal entries in a simplified way - 2

6,Bought Stamps Rs.10

Account to be debited            Postage A/c.(Nominal A/c - Debit losses and expenses)

Account to be credited           Cash A/c(Real A/c-Credit What goes out)

Reason - 

(a)Postage is an expense.. 

(b)Cash goes out. 

7.Withdrew cash from business for personal use Rs. 100

Account to be debited            Drawings A/c (Personal A/c - Debit the receiver of benefit)

Account to be credited           Cash A/c   (Real A/c-Credit What goes out)

Reason - 

(a)Proprietor is the receiver of benefit, when he withdraws cash from business for his personal use. 

(b)Cash goes out. 

8.Paid salary to manager Rs. 300

Account to be debited            Salaries A/c (Nominal A/c - Debit  losses and expenses)

Account to be credited           Cash A/c   (Real A/c-Credit What goes out)

Reason - 

(a)Salaries is an expense.

(b)Cash goes out. 

9.Paid rent to landlord to Rs. 200.

Account to be debited            Rent A/c (Nominal A/c - Debit  losses and expenses)

Account to be credited           Cash A/c   (Real A/c-Credit What goes out)

Reason - 

(a)Rent paid is an expense.

(b)Cash goes out. 

10.Received commission from George Rs. 50

Account to be debited            Cash A/c (Real A/c - Debit  what comes in)

Account to be credited           Commission A/c   (Nominal A/c-Credit Incomes and gains)

Reason - 

(a)Cash comes in 

(b)Commission received is an income.

11.Paid for repairing machinery Rs. 30

Account to be debited            Repairs A/c (Nominal A/c - Debit  losses and expenses)

Account to be credited           Cash A/c   (Real A/c-Credit What goes out)

Reason - 

(a)Repairs to machinery is an expense.

(b)Cash goes out.

12.Received cash from Raghav on account Rs. 400

Account to be debited            Cash A/c (Real A/c - Debit  What comes in)

Account to be credited           Raghav A/c   (Personal A/c-Credit the giver of benefit)

Reason - 

(a)Cash comes in 

(b)Raghav is the giver of benefit

13.Gave loan to Bhasker Rs.500.

Account to be debited            Bhasker's Loan A/c (Personal A/c - Debit  the receiver of benefit)

Account to be credited           Cash A/c   (Real A/c-Credit what goes out)

Reason - 

(a)Bhasker is the receiver of benefit, i.e., loan.

(b)Cash goes out.

14.Purchased goods from Raghu Rs. 300

Account to be debited            Purchases A/c (Real A/c - Debit what comes in 

                                                                  or Nominal A/c - Debit losses and expenses) 

Account to be credited           Raghu A/c   (Personal A/c-Credit the giver of benefit)

Reason - 

(a)Goods come in on purchase or goods purchased are an expense for the business.

(b)Raghu is the giver of benefit.

15.Opened a bank account with Rs. 600.

Account to be debited            Bank A/c (Personal A/c - Debit the receiver of benefit)                                                                 

Account to be credited           Cash A/c   (Nominal A/c-Credit what goes out)

Reason - 

(a)Bank is the receiver of benefit i.e., cash

(b)Cash goes out.

Examples of Journal entries in a simplified way

Journal entries explained in a simplified way.

1. X commenced business with cash. Rs. 5000.

2. Bought goods from Keshav for cash rs. 1,000.

3. Sold furniture to Raghav on credit Rs. 5,000.

4. Sold goods for cash Rs. 800.

5. Cash purchases Rs. 600.

1.X commenced business with cash. Rs. 5000.

Account to be debited            Cash A/c.(Real A/c - Debit what comes in)

Account to be credited           Capital A/c(Personal A/c-Credit the giver of benefit)

Reason - 

(a)Cash comes in. 

(b)Proprietor is the giver of benefit, when he gives cash to that business. 

2. Bought goods from Keshav for cash rs. 1,000. 

Account to be debited             Purchases A/c(Real A.c- Debit what comes in or Nominal A/c -   

                                                                      Debit losses and expenses)

Account to be credited            Cash A/c (Real A/c - Credit what goes out)

Reason - 

(a)Goods come in on purchase or goods purchases are expenses for the business 

(b)Cash goes out by.

3. Sold furniture to Raghav on credit Rs. 5,000. 

Account to be debited               Raghav's A/c(Personal A/c- Debit the receiver of benefit)

Account to be credited              Furniture A/c(Real A/c- Credit what goes out)

Reason - 

(a).Raghav is the receiver of benefit.

(b).Furniture goes out.

4. Sold goods for cash Rs. 800. 

Account to be debited                 Cash A/c (Real A/c - Debit what comes in)

Account to be credited                Sales A/c (Real A/c - Credit what goes out or Nominal A/c - Credit      

                                                   incomes and gains)

Reason - 

(a).Cash comes in.

(b).Goods go out on sale or goods sold are incomes for the business

5. Cash purchases Rs. 600. 

Account to be debited                   Purchases A/c (Real A/c - Debit what comes in or Nominal A/c -

                                                                              Debit losses and expenses)

Account to be credited                  Cash A/c (Real A/c - Credit what goes out)

Reason -

(a).Goods come in on purchase or goods purchases are expenses for the business.

(b).Cash goes out.