Journal Entries of Different Types of Transactions - Part 1

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  • + guest2b210b6 guest2b210b6 6 months ago
    Please help!
    a bank sells a customer $500 of American Express traveler’s check, for which the bank collect from the customer 505. (The bank charge 1% for this service.) How does the bank record this transaction? How does it affect American Express’s balacne sheet.
  • + rahulogy Rahul Guhathakurta 6 months ago
    Answer for guest8d1829/ Jessica:

    PURCHASE
    PROPERTY A/C (ASSET) dr $180000
    TO BANK LOAN (LIAB) cr $100000
    TO CASH/BANK (BANK) cr $80000

    SALE
    BANK A/C (ASSET) dr $380000
    TO PROPERTY A/C (cr) (ASSET) $180000
    TO INCOME ON SALE cr (INCOME) $200000
  • + guest8d1829 guest8d1829 6 months ago
    how to pass the journal entries for company trust capital gain, plus the compay eligible for 50% discount method?
    Situation like, company trust purchased a property at the cost $180 000 and sold for $380 000 and still own the bank $100 000. please forward your feedback to my email address jessica14051981@yahoo.com . thanks.
  • + gueste0da8d gueste0da8d 7 months ago
    if Rs.5000 paid for charitable trust then pass the journal entry.
  • + guest31818ce0 guest31818ce0 9 months ago
    CAN U TELL ME HOW TO PASSING THE JOURNAL FOR CAPITAL LOSS
    MY MAIL ID: nandunalla@gmail.com
  • + guest197fd guest197fd 10 months ago
    5. How are personal and impersonal accounts different?








    5. How are personal and impersonal accounts different?
  • + guest848e58 guest848e58 2 years ago
    can u tell me the rules of passing journal entries of share capital in company accounts
  • + guest7b2823 guest7b2823 2 years ago
    can u tell me the rules of passing journal entries of share capital in company accounts
  • + guestd5d92f guestd5d92f 2 years ago
    its good for a fresher to undrerstand the dr. cr. rules
  • + guestd8e7ac guestd8e7ac 2 years ago
    its too good, thanks. Realy you people are showing easy way of accounts,

    please can u provide me slide show for Bank reconcilation statement also please....

    shrmshrml@yahoo.co.in

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Journal Entries of Different Types of Transactions - Part 1 - Presentation Transcript

  1. Journal Entries of Different Types of Transactions Part 1 Rahul Guhathakurta Indian Institute of Planning & Management, Ahmedabad Rahul Guhathakurta © 2006 , http://www.slideshare.net/rahulogy
  2. Types of Economic Transaction Types of Economic Transactions Cash Transactions Transactions for Goods or Services Transactions Involving Receivables & payables
    • Asset Transaction
    • Goods Transaction
    • Service Transaction
    • Debt Transaction
    • Service Transaction
    • Asset Transaction
  3. Types of Accounts Types of Accounts Personal Accounts Impersonal Accounts Real Accounts Nominal Accounts
  4. Important Rules of Debit and Credit
    • Rule of Personal Account :
    • “Debit the receiver , Credit the giver”
    • Rule of Real Account :
    • “ Debit What Comes in, Credit what goes out”
    • Rule of Nominal Account :
    • “ Debit the Expenses and Losses, Credit the Incomes and Gains”
  5. Regarding Capital & Drawings
    • Owner brings in “capital” to business:
    • Cash a/c debited (<<< money in)
    • Capital a/c credited (>>> money out)
    • Incase of Drawings, Owner of business take away cash or goods in any form
    • Drawing a/c debited (<<< money in)
    • Cash/ Goods a/c credited (>>> money out)
  6. Regarding Transactions Relating to Goods and Assets
    • Goods are bought in
    • Goods/ purchase a/c debited (<<< debit what comes in)
    • Cash a/c credited (>>> credit what goes out) or
    • A’s Personal a/c credited (>>> money out) -> if goods purchased from the particular person A
  7. Cont’d…
    • When goods are sold, Goods are out of the business, so by rule no:2
    • Good Sales a/c credited (>>> credit what goes out)
    • B’s Personal a/c debited (<<< debit what comes in)
    • [Being goods sold to Person B ]
  8. Cont’d…
    • When goods are purchased are defective or damaged, they are returned back to the trader.
    • Purchase Return a/c credited (>>> credit what goes out)
    • C’s Personal a/c debited (<<< what comes in) -> [ Being goods returned to Person C]
    • When goods are defective and the customer returns them, by rule no: 2
    • Sales Return a/c debited (<<< what comes in)
    • D’s personal a/c credited (>>> what goes out)->[ Being goods returned by Person D]
  9. Note 1:
    • Hence only one goods account is not maintained in a business, in that case information on:
    • Purchases
    • Sales
    • Purchase Return
    • Sales Returns, etc
    • has to be maintained separately
    • Goods withdrawn for personal use:
    • when owner of the business takes away goods for personal use, it becomes necessary to pass an entry for an amount to the cost price of the goods.
    • Drawings a/c debited (<<< what comes in)
    • “ goods gone as drawings” a/c credited (>>>>what goes out)
    • Goods given in Charity:
    • Charity a/c debited (<<< what comes in)
    • Goods given for charity a/c credited (>>> what goes out)
    • Goods distributed as Samples for Advertisement
    • Advertisement a/c debited (<<< what comes in)
    • Goods gone for advertisement a/c credited (>>> what goes out)
    • Goods destroyed by fire:
    • “loss by fire” a/c debited (<<< what comes in)
    • “goods destroyed by fire” a/c credited (>>> what goes out)
    • Note: If goods are insured,
    • Insurance company a/c debited (<<<)
    • “goods destroyed by fire” a/c credited (>>>)
    • THANK YOU

+ Rahul GuhathakurtaRahul Guhathakurta, 3 years ago

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Types of Accounts
Types of Transactions more

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