Chapter - 3 Journal Entries Part 1

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SUBJECT:- TALLY ERP - 9
Chapter 3
Journal Entries
Meaning of a Journal: A Journal is the primary book of accounts in which
transactions are first recorded in a chronological order, i.e., as they are
entered into. Transactions are recorded in the Journal book from the
accounting voucher that is prepared on the basis of source documents, i.e.,
cash memo, invoices, purchase bills, etc.)
GOLDEN RULES OF ACCOUNTING

TYPES OF ACCOUNT DEBIT CREDIT
Personal Account The Receiver The Giver
Real Account What Comes In What Goes out
Nominal Account Expenses and Losses Income and Gains
Personal Accounts are those accounts which represent persons and
organisations. Examples include:-
 Suppliers
 Customers
 Corporate bodies and institutions
Real Accounts are those accounts which represent assets. Examples include:-
 Buildings
 Furniture
 Cash
Nominal Accounts are accounts where income and expenses are recorded.
Examples include:-
 Sales
 Cost of goods sold
 Salary Expense
ACCOUNT DEBIT ( Dr. ) CREDIT ( Cr. )
Assets Account Increase Decrease
Liabilities Account Decrease Increase
Capital Account Decrease Increase
Revenue Account Decrease Increase
Expense Account Increase Decrease

Format of journal entries
Date Particulars l/f Dr. Amount Cr. Amount
Examples of Journal Entries : -
1) Purchase Furniture In cash …………………………………………… 2000

Furniture A/c -----------------------Dr. 2000
To Cash A/c -------------------Cr. 2000
2) Purchase Furniture through cheque ……………………………… 2000

Furniture A/c -----------------------Dr. 2000
To Bank A/c -------------------Cr. 2000
3) Purchase goods from Ankit on credit ………..…………………… 2000

Purchase A/c -----------------------Dr. 2000
To Ankit A/c -------------------Cr. 2000
4) Purchase goods from Ankit in cash ………..…………………… 2000

Purchase A/c -----------------------Dr. 2000
To Cash A/c -------------------Cr. 2000
5) Sold Furniture In cash …………………………………………… 2000

Cash A/c --------------------------Dr. 2000
To Furniture A/c ------------Cr. 2000
6) Sold Furniture through cheque ……………………………… 2000

Bank A/c --------------------------Dr. 2000
To Furniture A/c ------------Cr 2000
7) Sold goods to Ankit on credit ………..…………………… 2000

Ankit A/c -----------------------Dr. 2000
To Sales A/c -------------------Cr. 2000
8) Sold goods to Ankit in cash ………..…………………… 2000

Cash A/c -----------------------Dr. 2000
To Sales A/c -------------------Cr. 2000
Questions
1. Journalise the following transactions.

a) Purchase goods from Ram on Credit. 15,000
b) Purchase goods from Ram in cash. 10,000
c) Cash paid to Ram. 5,000
d) Cheque Paid to Ram. 10,000
e) Sold goods to Shyam Credit. 20,000
f) Sold goods to Shyam in Cash. 15,000
g) Cash Received from Shyam. 8,000
h) Cheque Received from Shyam. 12,000
i) Salary Paid in Cash. 15,000
j) Rent Received Through Cheque. 10,000
2. Journalise the following transactions of Mr. Satish:

a) Rahul started business with cash 10,000
b) Paid into bank 6,000
c) Bought goods from M/s S. Singh & Co. on credit 2,000
d) Purchased furniture 200
e) Purchased adding machine 800
f) Purchased typewriter 600
g) Paid for postage 15
h) Sold goods for cash 400
i) Sold goods on credit to M/s. Sharda & Co. 1,000
j) Paid to M/s. S. Singh & Co. 1,950
k) Discount allowed by them 50
l) Sold goods to M/s. Ray & Co. 560
m) Received cheque from M/s. S. Sharda & Co. 975
(In full settlement of amount due from them)
n) Paid for electric charges 10
o) Paid salary 150
p) Paid rent by cheque 200
q) Drew for private use 350
3. The following are the transactions of R. Singh & Co. for the month of July. You are
required to journalise them:
a) Started business with cash 8,000
b) Cash paid into Bank 5,000
c) Bought stationary for cash 30
d) Bought goods for cash 2,100
e) Bought postage stamp 10
f) Sold goods for cash 750
g) Bought office furniture from Bannerjee Bros. 500
h) Sold goods to Mahendra 1,000
i) Received cheque from Mahendra 1,000
j) Paid Banneries Bros. by cheque 500
k) Sold goods to Vinod & Co. 500
l) Bought goods from S. Sharma & Bros. 700
m) Bought goods for cash from S. sanjay & Co. 225
n) Sold goods to P. Puneet 350
o) Vinod & Co. paid on account 250
P) Paid S. sharma & Bros. by cheque n full settlement 685
q) Paid Salaries 250
4. Write up the following transactions in the Journal of Ashok, and post them to
Ledger for April, 2006:
a) Commenced business with cash 40,000
b) Deposited in bank 30,000
c) Bought goods for cash 5,000
d) Sold goods to Amit 2,500
e) Bought goods from Parvat 5,100
f) Received cash from sumit 1,950
g). Discount allowed 50
h) Paid cash to Parvat 3,900
i) Discount allowed 1200
j) Received cash for goods sold 2,750
k) Bought goods from Mohit 2,350
l) Withdrew for private expenses 1,000
m) Received cash from Sumit and deposited into bank 500
n) Paid sundry trade expenses 250
o) Paid Rent 450
p) Paid cash to Mohit 2,300
q) Discount allowed 50
r) Goods sold to Romy 4,750
s) Paid for carriage 50

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Address :- New Delhi Contact :- 8882880965

STP COMPUTER EDUCATION

SUBJECT:- TALLY ERP - 9

GOLDEN RULES OF ACCOUNTING

ACCOUNT DEBIT ( Dr. ) CREDIT ( Cr. )

Assets Account Increase Decrease

Liabilities Account Decrease Increase

Capital Account Decrease Increase

Revenue Account Decrease Increase

Expense Account Increase Decrease

Examples of Journal Entries : -

1) Purchase Furniture In cash …………………………………………… 2000

Date Particulars l/f Dr. Amount Cr. Amount

2) Purchase Furniture through cheque ……………………………… 2000

Date Particulars l/f Dr. Amount Cr. Amount

3) Purchase goods from Ankit on credit ………..…………………… 2000

Date Particulars l/f Dr. Amount Cr. Amount

Date Particulars l/f Dr. Amount Cr. Amount

5) Sold Furniture In cash …………………………………………… 2000

Date Particulars l/f Dr. Amount Cr. Amount

6) Sold Furniture through cheque ……………………………… 2000

Date Particulars l/f Dr. Amount Cr. Amount

7) Sold goods to Ankit on credit ………..…………………… 2000

Date Particulars l/f Dr. Amount Cr. Amount

8) Sold goods to Ankit in cash ………..…………………… 2000

Date Particulars l/f Dr. Amount Cr. Amount

1. Journalise the following transactions.

2. Journalise the following transactions of Mr. Satish:

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