journal entries -- group 1--- final

8/7/2019 JOURNAL ENTRIES -- Group 1--- final

http://slidepdf.com/reader/full/journal-entries-group-1-final 1/34

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

1



Contentsy Book Keeping

y Journal

y Format of Journaly Debit and Credit

y Journal Entries

2



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

4



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.

5



Format of Journal

Da

te Pa

rticula

rs LF Debit CreditRs. P. Rs. P.

Journal entries in the books of ___________ for the period _________ .

6



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.

7



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

8



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

9



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

10





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

11





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

12





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

13





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



Journal Entries in the books of Super Six company Ltd for the period 31st

Jan 2011


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


Credit A mtRs.

8th Jan 11 Insurance Claim A/c Dr. 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.

15





Credit A mtRs.

8th Jan 11 Insurance claim A/c Dr. 400Profit and loss A/c Dr. 600


(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.

16





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

17





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:


JournalEntries

Expenses increases, charged to P/L A/c debit side 18





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





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:


JournalEntries

Investment increases, Assets increases 20



21



Credit A mtRs.


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



22



Credit A mtRs.


To Purchases A/c 300


On 15th January 2011, goods distributed as charity Rs. 300 .

Logic Applied:

Purchases decreases, Assets decreases Advertisement is an expenses

JournalEntries



2323



Credit A mtRs.

16th Jan 11 Depreciation A/c Dr. 1000

To Machinery A/c 1000


On 16th January 2011, Depreciation on machinery @ 1%.

Logic Applied:

JournalEntries





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:


JournalEntries

24





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

25




JournalEntries


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

26




JournalEntries


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




JournalEntries


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

28




JournalEntries


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.

29




JournalEntries


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

30




JournalEntries


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

31




JournalEntries


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

32




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/-.


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)

33

Logic Applied:

Cash decreases, Assets decreases



Thank You

Best of Luck next Group

34

journal entries -- group 1--- final

Documents