(M.nauman sher) accounting journal entries
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(M.nauman sher) accounting journal entries (M.nauman sher) accounting journal entries Document Transcript

  • AccountingDebit-CreditDebit: Debit is something which gives benefit, which belongs to the owner, useful for business, isproductive or generates revenue or is taken is known as Debit. Hence in short, all the things which areon positive side or aspect are known as debit.Credit: Credit is something which creates problems, loans also fall into the category of Credit or is givenaway, in simple, all the things which are on negative side or aspect is known as credit.Rules of Debit-Credit:There are few basic rules of Debit-Credit, if these rules are understood, then accounting becomes easyto understand. The few Basic rules of Debit and Credit, which tells us whether something is debit orcredit are mentioned below in the form of table:Category Rule Debit CreditAssets Increasing  x Decreasing x Revenue Increasing x  Decreasing  xOwner’s Equity Increasing x  Decreasing  xLiability Increasing x  Decreasing  xJournalThe book in which accounts are recorded systematically is known as Journal.It records business transactions on daily purpose, and is also known as DAY BOOK. It is also known as“Book of Original Entries” because all the business transactions are recorded on daily and originalbases. Journal provides Business Transaction’s in chronological order. Chronological order means thatbusiness transactions are recorded Date Wise.
  • Transactions MNSher’s Comp-Lap Universe. (Deals in all types of Computers and Laptop & accessories).Shop No: 42Transaction 1:A customer named as Ali purchased a Dell (Core i5) laptop for Rs.60000 and paid it in cash on 2.5.2012.Date Particular Business Transaction Ledger Debit Credit Page2.5.2012 Cash (Asset) Rs.60000 Laptop (Asset) Rs.60000 Total Rs.60000 Rs.60000Here, it’s affecting two accounts, laptop and cast. Laptop is an asset and is provided to the customer isit’s noted as credit because it’s an asset and after giving laptop assets are decreased so it fall’s in creditcategory and cash is also an asset, but it is received mean increase in our asset so it’s debit.Transaction 2:On 3.5.2012, the same customer named as Ali purchased another laptop (HP Core 2 duo 1.8ghz) forRs.28,000, in which he paid Rs.18,000 and decided to pay the rest of the amount i.e. Rs.10,000 within 1month.Date Particular Business Transaction Ledger Debit Credit Page3.5.2012 Cash (Asset) Rs.18000 laptop (Asset) Rs.28000 Notes Payable (liability) Rs.10000 Total Rs.28000 Rs.28000So here a transaction hits three accounts, first Laptop (asset), then cash (asset) and the notes payable(liability). Laptop is given to the customer, so it’s credit, then Cast is taken so it’s Debit, also the
  • remaining cash is the liability, and will be paid within 1 month means our liability will decrease so it’salso a debit.Transaction 3:On 6.5.2012, a gaming mouse of Rs.2200 and a keyboard of Rs.1700 were sold to a customer namedShahbaz.Date Particular Business Transaction Ledger Debit Credit Page6.5.2012 Cash (Asset) Rs.2200 Cash (Asset) Rs.1700 Gaming Mouse (Asset) Rs.2200 Keyboard (Asset) Rs.1700 Total Rs.3900 Rs.3900Here it’s affecting 3 accounts, gaming mouse, keyboard and Cast. Gaming mouse and keyboard wereasset and given away so they are credit, while the cash taken is the debit.Transaction 4:On 10.5.2012, 5 printers were ordered by an organization named Habib Bank Limited. Total costingRs.30,000. Payment of Rs.20,000 was paid and the remaining Rs.10,000 was to be paid in cash the nexttwo days.Date Particular Business Transaction Ledger Debit Credit Page10.5.2012 Cash (Asset) Rs.20000 5 Printers (Asset) Rs.30000 Notes Payable (liability) Rs.10000 Total Rs.30000 Rs.30000Here it’s affecting 3 accounts, Cast (asset) which is taken so it’s debit, 2nd is Printers, which are given andare asset so it’s credit, and 3rd is the Notes Payable which the liability which is debit.Transaction 5:On 12.5.2012, a customer wahab (my friend) bought a new Samsung LCD monitor for Rs.12000 in whichRs.6000 was paid, and the rest of the amount that is Rs.6000 was to be paid when he wanted to pay.
  • Date Particular Business Transaction Ledger Debit Credit Page12.5.2012 Cash (Asset) Rs.6000 Samsung LCD (Asset) Rs.12000 Amount Payable (liability) Rs.6000 Total Rs.12000 Rs.12000Here it’s affecting again 3 accounts, 1st the cash, which is received and is debit, 2nd is the LCD which issold is the Credit and 3rd is the amount payable, which Rs.6000 and is the liability, which will decreasewith the rest of the payment so it’s also debit.Transaction 6:On 14.5.2012, 2 RAM chips of 1gb, 3 keyboards, and 2 pair of desktop speakers were sold, which pricewas Rs.3400, Rs.3600 and Rs.1200 respectively.Date Particular Business Transaction Ledger Debit Credit Page14.5.2012 Cash (Asset) Rs.8200 2 Ram Chips (1gb) (Asset) Rs.3400 3 Keyboards (Asset) Rs.3600 2 Desktop Speakers (Asset) Rs.1200 Total Rs.8200 Rs.8200Here it’s hitting 4 accounts. 1st ram chips, 2nd keyboards and 3rd desktop speakers. All of the 4 are assets.Cash is taken, so it’s debit, while the rest of the 3 accounts are assets and are given away so they arecredit.Transaction 7:15.5.2012, a Pentium 4 desktop computer( 2.4ghz,1gb ram,128mb 3d card, a mouse, keyboard and apair of desktop speakers), was sold for Rs.5800. Payment of Rs.5000 was made, while the remainingamount payable Rs.800 was to be paid later.Date Particular Business Transaction Ledger Debit Credit Page15.5.2012 Cash (Asset) Rs.5000 Pentium 4 Desktop (Asset) Rs.5800 Amount Payable (liability) Rs.800 Total Rs.5800 Rs.5800
  • Here it hits 3 accounts. Cash, which is asset and is increased so it’s debit, 2nd is Pentium 4, which is anasset and is given away so it’s credit, while the 3rd amount payable is the liability, which will bedecreased after getting the payment so it’s decreasing and means it’s also debit.Transaction 8:On 16.5.2012, nVidia Geforce 9600 1 GB graphic card was sold for Rs.8000, with computer headphonesof Rs.600.Date Particular Business Transaction Ledger Debit Credit Page16.5.2012 Cash (Asset) Rs.8600 nVidia GF 9600 (1gb) (Asset) Rs. 8000 Computer Headphones Rs. 600 Total Rs.8600 Rs.8600Here it’s hitting 3 accounts, cash, which is increasing or is received, is debit, while graphic card andheadphones are given away which is credit.Transaction 9:On 18.5.2012, a LED Samsung Monitor worth of Rs.18000 and a HP LaserJet Printer of Rs.8000 was sold.Date Particular Business Transaction Ledger Debit Credit Page18.5.2012 Cash (Asset) Rs.26000 LED Samsung Monitor (Asset) Rs.18000 HP LaserJet Printer (Asset) Rs.8000 Total Rs.26000 Rs.26000Here we have 3 accounts which are affected. Cash, which is taken and is credit, while the monitor andprinter are given away, so they are market as credit.Transaction 10:On 19.5.2012, Dell Core i7, was sold for Rs.83000 to a customer named Shariq. In which he paidRs.50000, and was decided to pay the rest of the Rs.33000 within 3 months.Date Particular Business Transaction Ledger Debit Credit Page19.5.2012 Cash (Asset) Rs.50000 Dell Core i7 (Asset) Rs.83000 Notes Payable (liability) Rs.33000 Total Rs.83000 Rs.83000
  • Here, Cash is taken, so it’s debit, laptop is given and is an asset, so it’s credit, while notes payable isliability, which will be decreased when received so it’s debit.Transaction 11:On 20.5.2012, 5 Core 2 Duo Desktop Computers were sold, each one pricing Rs.12000, making a total ofRs.60000 to United Bank Limited.Date Particular Business Transaction Ledger Debit Credit Page20.5.2012 Cash (Asset) Rs.60000 5 Core 2 Duo PCs (Asset) Rs.60000 Total Rs.60000 Rs.60000In this transaction, 2 accounts, cash and PCs are affected. Both are assets, cash is received so it’s debitwhile PCs are given to the Bank so it’s credit.Transaction 12:On 22.5.2012, 2 gaming mouse of Rs.8000, 2 keyboards worth of Rs.2400, a pair of headphones ofRs.2400, couple of mouse pads pricing at Rs.200 were sold to customer named Amjad, and a PackardBell monitor pricing at Rs.4000 was sold to a customer named as Shakir.Date Particular Business Transaction Ledger Debit Credit Page22.5.2012 Cash (Asset) Rs.17000 2 gaming mouse (Asset) Rs.8000 2 Keyboards (Asset) Rs.2400 2 mouse pads (Asset) Rs.2400 2 Headphones (Asset) Rs.400 Packard Bell monitor (Asset) Rs.4000 Total Rs.17000 Rs.17000Here, 6 accounts are affected, all of them are assets, only Cash is received which is counted as debit,while the rest of the items are given away which are counted as credit.
  • Transaction 13:On 24.5.2012, a HP pavilion laptop i3 of Rs.43000 was sold to a customer named as Aaqib.Date Particular Business Transaction Ledger Debit Credit Page24.5.2012 Cash (Asset) Rs.43000 HP pavilion i3 laptop (Asset) Rs.43000 Total Rs.43000 Rs.43000Here cash is taken and is debit while laptop is given which is credit.Transaction 14:On 26.5.2012, Acer Core 2 Duo Laptop pricing at Rs.25000 was sold. And a keyboard of Rs.800 was alsosold.Date Particular Business Transaction Ledger Debit Credit Page26.5.2012 Cash (Asset) Rs.25800 Acer Core 2 Duo laptop (Asset) Rs.25000 Keyboard (Asset) Rs.800 Total Rs.25800 Rs.25800Here 3 accounts are affected. Cash which is debited, laptop and keyboard which are given, so are credit.Transaction 15:On 28.5.2012, a mouse of Rs.300 and a graphic card, nVidia gt550 1 GB of Rs.20000 was sold.Date Particular Business Transaction Ledger Debit Credit Page28.5.2012 Cash (Asset) Rs.20300 nVidia gt 550 (Asset) Rs.20000 Mouse (Asset) Rs.300 Total Rs.20300 Rs.20300Here it hits 3 accounts. Cash, which is an asset, is increased so it’s debit, while graphic card and mouseare asset and given away so they are credit.Sources/References:The definitions are taken from the notes that I made during the lecture and also the rules were notedduring the lecture, the rules were also explained to me by my friend. And Transactions are made on the
  • spot by me, keeping the examples that I noted during the class, in front of me. No sources from internetbecause internet was dead since Thursday morning and no other references as well.Email Sent via Father’s office.Date Particular Business Transaction Ledger Debit Credit Page2.5.2012 Cash (Asset) Rs.60000 Laptop (Asset) Rs.60000 Total Rs.60000 Rs.600003.5.2012 Cash (Asset) Rs.18000 laptop (Asset) Rs.28000 Notes Payable (liability) Rs.10000 Total Rs.28000 Rs.280006.5.2012 Cash (Asset) Rs.2200 Cash (Asset) Rs.1700 Gaming Mouse (Asset) Rs.2200 Keyboard (Asset) Rs.1700 Total Rs.3900 Rs.390010.5.2012 Cash (Asset) Rs.20000 5 Printers (Asset) Rs.30000 Notes Payable (liability) Rs.10000 Total Rs.30000 Rs.3000012.5.2012 Cash (Asset) Rs.6000 Samsung LCD (Asset) Rs.12000 Amount Payable (liability) Rs.6000 Total Rs.12000 Rs.1200014.5.2012 Cash (Asset) Rs.8200 2 Ram Chips (1gb) (Asset) Rs.3400 3 Keyboards (Asset) Rs.3600 2 Desktop Speakers (Asset) Rs.1200 Total Rs.8200 Rs.820015.5.2012 Cash (Asset) Rs.5000 Pentium 4 Desktop (Asset) Rs.5800 Amount Payable (liability) Rs.800 Total Rs.5800 Rs.580016.5.2012 Cash (Asset) Rs.8600 nVidia GF 9600 (1gb) (Asset) Rs. 8000 Computer Headphones Rs. 600 Total Rs.8600 Rs.8600
  • 18.5.2012 Cash (Asset) Rs.26000 LED Samsung Monitor (Asset) Rs.18000 HP LaserJet Printer (Asset) Rs.8000 Total Rs.26000 Rs.2600019.5.2012 Cash (Asset) Rs.50000 Dell Core i7 (Asset) Rs.83000 Notes Payable (liability) Rs.33000 Total Rs.83000 Rs.8300020.5.2012 Cash (Asset) Rs.60000 5 Core 2 Duo PCs (Asset) Rs.60000 Total Rs.60000 Rs.6000022.5.2012 Cash (Asset) Rs.17000 2 gaming mouse (Asset) Rs.8000 2 Keyboards (Asset) Rs.2400 2 mouse pads (Asset) Rs.2400 2 Headphones (Asset) Rs.400 Packard Bell monitor (Asset) Rs.4000 Total Rs.17000 Rs.1700024.5.2012 Cash (Asset) Rs.43000 HP pavilion i3 laptop (Asset) Rs.43000 Total Rs.43000 Rs.4300026.5.2012 Cash (Asset) Rs.25800 Acer Core 2 Duo laptop (Asset) Rs.25000 Keyboard (Asset) Rs.800 Total Rs.25800 Rs.2580028.5.2012 Cash (Asset) Rs.20300 nVidia gt 550 (Asset) Rs.20000 Mouse (Asset) Rs.300 Total Rs.20300 Rs.20300 Grand Total Rs. 431600 Rs. 431600