The document defines journal entries and explains their purpose in recording business transactions on a daily basis. It provides examples of common journal entries for transactions such as starting a business, purchasing and selling inventory, receiving and paying cash, taking out loans, and other financial events. The key information provided is that journal entries use debits and credits to record transactions classified by accounts, with the journal serving as the initial book of entry before posting amounts to individual accounts.

1. Journal entry

2. Meaning of journal entries
 It is French word JOUR/
NAL
 So Jour – means Day
 Journal -means - Daily
 Transactions are recorded daily in
the journal as and when the
transactions takes place.
 Record of business transactions in
the journal is known as Journal entry.
 Other wise known as original entry or

3. Definition of journal
 According to Professor Carter,
“The journal as originally used, is a
book of prime entry in which
transactions are copied in order of
date from a memorandum or waste
book. The entries as they are
copied are classified into debits and
credits, so as to facilitate their being
correctly posted, afterwards in the

4. Golden Rules

5. Started business with cash
Capital
(Personal a/c )
Cash
Real a/c
Cash a/c Dr (Comes inn )
To Capital (Giver )

6. Cash withdrawn for personal use
Cash
Going out for personal use
(Real a/c)
Drawings a/c
Owner receiving
Personal a/c Receiver
Drawings a/c Dr Receiver
To Cash a/c Goes out

7. Purchased goods for cash
Purchase
(goods)Nominal a/c Cash (Real a/c)
Purchase a/c dr (Expenses)
To Cash a/c (Cash goes out)

8. Purchased goods from Prasad for credit
PRASAD
Purchase(Expenses)
(Goods)
(Nominal a/c )
Prasad
(cash or credit)
Personal a/c (giver)
Purchase a/c Dr Expenses a/c
To Prasad a/c Giver

9. Purchased furniture for cash
For
Furniture
Real a/c (comes inn)
Cash
Real a/c Goes out
Furniture a/c Dr (Comes inn)
To cash (Goes out

10. Purchased goods and paid cheque
FOR
Purchase (Goods)
Nominal a/c (expenses
Bank a/c Cheque
Personal a/c (Giver)
Purchase a/c Dr Expenses
To Bank a/c Giver

11. Goods sold to Ram for cash
Sales (goods)
Nominal a/c
Cash (receiving) Comes inn
Real a/c
Cash a/c dr Comes inn
To Sales Income

12. Furniture sold to prasad for cash
Furniture a/c (goes out
Real a/c
Cash a/c Comes inn
Real a/c
Cash a/c Dr Comes inn
To Furniture a/c goes out

13. Sold furniture to prasad for credit
Furniture a/c (goes out
Real a/c
Prasad (cash or credit)
Personal a/c (giver
Prasad a/c Dr Receiver
To Furniture a/c goes out

14. Cash paid to Prasad
Cash goes out
Real a/c
Prasad (receiver)
Personal a/c
Prasad a/c Receiver
To cash a/c Goes out

15. Cash received from Prasad
Cash Comes inn
Real a/c
Prasad ( Giver )
Personal a/c
Cash a/c Receiver
To Prasad a/c Goes out

16. Cash deposited into bank a/c
Bank
Bank a/c (receiver)
Personal a/c
Cash Goes out
Real a/c
Bank a/c Dr Receiver
To Cash a/c Goes out

17. Cash withdrawn from bank a/c
Bank a/c (Giver )
Personal a/c
Cash Comes inn out
Real a/c
Cash a/c dr Comes inn
To Bank a/c Giver

18. Borrowed loan from bank a/c
Bank
Bank Loan (Giver)
Personal a/c
Cash Comes inn
Real a/c
Cash a/c Dr (Comes inn)
Bank loan a/c (Giver)

19. Salary paid by cash
Salary (Expenses)
Nominal a/c
Cash (Going out )
Real a/c
Salary a/c Expenses
To Cash a/c Goes out

20. Salary paid by cheque
Salary (Expenses)
Nominal a/c
Bank a/c Cheque
Personal a/c (Giver)
Salary a/c Expenses
To Bank a/c Giver

21. Received Discount by cash
Discount a/c (Income)
Nominal a/c
Cash (Coming inn)
Real a/c
Cash a/c Dr (Comes inn)
To Discount a/c (Income)

22. PaidRs 1000 In full settlement of Rs 1500 due to creditor
,Prasad
Prasa
d
Rs100
0
Rs50
0
Rs1500
Prasad Receivng
Personal a/c
Prasad a/c Dr Receiver
To Cash a/c Goes out
To discount a/c Income

23. insolvent and 40 paise in a rupee
is received from the estate for his
due Rs 10,000
10,000 RS
RS
4000
Rs
6000
Cash a/c Dr 4000(10,000 x
0.40)
Bad debts a/c dr 6000

24. Cricket bats donated to a trust
Purchasing (bats and balls )
Nominal /c Personal a/c (receiver)
Donation a/c Dr
Purchase a/c