The document discusses journal entries in accounting. It defines a journal as a chronological list of all business transactions that identifies the affected accounts, applies debit and credit rules, and records the transaction description. It provides examples of journal entries for various common transactions like starting a business, purchasing goods or assets, paying expenses, and withdrawing cash. For each transaction, it identifies the involved accounts, classifies them as personal, real or nominal, and applies the relevant debit and credit rules to record the transaction in journal entry format.

1. JOURNAL ENTRIES

2. Journal
• What is a Journal?
• It is a list in chronological order of all the
transactions for a business.
1 Identify transaction from source documents.
2 Specify accounts affected.
3 Apply debit/credit rules.
4 Record transaction with description.

3. PROFORMA OF JOURNAL
DATE PARTICULARS LF DEBIT CREDIT

4. STEPS
• Step 1-Identify the 2 A/Cs
• Step 2- The Identified A/Cs should be
classified as REAL or PERSONAL or NOMINAL
A/Cs
• Step 3-Find out the rules of DEBIT & CREDIT
• Step 4-Identify which A/Cs is to be debited &
credited

5. GOLDEN RULES OF ACCOUNTING
•
RULES
1)PERSONA
L A/C
2) REAL A/C
3) NOMINAL
A/C

6. PERSONAL A/C
Debit- the Receiver
Credit-The Giver
• This rule is applicable to persons, artificial persons
&representative persons
• LIKE
RAM
SHYAM
KARMA
CAPITAL
DRAWINGS
BANKS
COMPANYS
AMAN
RAM & SONS
BIG-C
SBI

7. REALA/C
Debit- what comes in
credit-what goes out
• An account related to an ASSET or PROPERTY
• Like
Cash
Furniture
Plant
Machinery
Land & Building
Goods
Bank

8. NOMINAL A/C
Debit -- All expenses & losses
Credit – All incomes & gains
• Records Expenses, gains & losses
• Like
Rent
interest
discount
Commission
Wages
Salary
income
bad debts
fuel
Gas
Power
papers
books

9. 1)Mohan started business with cash
Rs10L

10. 1)Mohan started business with cash
Rs10L

11. 1)Mohan started business with cash
Rs10L
Accounts
involved
Debit/credit Rule applied
Mohan capital 10l personal
cash 10l real

12. 1)Mohan started business with cash
Rs10L
Accounts
involved
Debit/credit Rule applied
Mohan capital 10l Personal a/c
cash 10l Real a/c

13. 1)Mohan started business with cash
Rs10L
Accounts
involved
Debit/credit Rule applied
Mohan capital 10l Personal a/c
cash 10l Real a/c

14. 1)Mohan started business with cash
Rs10L
Accounts
involved
Debit/credit Rule applied
Mohan capital 10l (out) Personal a/c
cash 10l (in) Real a/c

15. 1)Mohan started business with cash
Rs10L
Accounts
involved
Debit/credit Rule applied
Mohan capital 10l (out) Personal a/c
cash 10l (in) Real a/c
PROFORMA OF JOURNAL
DATE PARTICULARS LF DEBIT CREDIT
1
Cash a/c ---------------- -----------------------------dr
To Capital a/c ---------------------------------------cr
(Being started business with 10L)
10L
_
_
10L

16. 2)Purchase goods for cash Rs 10,000

17. 2)Purchase goods for cash Rs 10,000

18. 2)Purchase goods for cash Rs 10,000
Accounts
involved Debit/credit
Rule applied
Goods 10000 real a/c
Cash 10000 Real a/c

19. 2)Purchase goods for cash Rs 10,000
Accounts
involved Debit/credit
Rule applied
Goods 10000 real a/c
Cash 10000 Real a/c

20. 2)Purchase goods for cash Rs 10,000
Accounts
involved Debit/credit
Rule applied
Goods 10000 (in) real a/c
Cash 10000 (out) Real a/c

21. 2)Purchase goods for cash Rs 10,000
Accounts
involved Debit/credit
Rule applied
Goods 10000 (in) real a/c
Cash 10000 (out) Real a/c
Date Particulars LF Debit Credit
2 Goods a/c--------------------------dr
To cash a/c-----------------------cr
(Being purchased goods for cash)
10000
---------
--------
10000

22. 3)Paid Salary by cash Rs 20000

23. 3)Paid Salary by cash Rs 20000
Accounts
involved Debit/credit
Rule applied
Salary 20000 Nominal a/c
Cash 20000 Real a/c

24. 3)Paid Salary by cash Rs 20000
Accounts
involved Debit/credit
Rule applied
Salary 20000 (exp) Nominal a/c
Cash 20000 (out) Real a/c

25. 3)Paid Salary by cash Rs 20000
Accounts
involved Debit/credit
Rule applied
Salary 20000(exp) Nominal a/c
Cash 20000 (out) Real a/c
Date Particulars LF Debit Credit
3 Salary a/c--------------------------------------------------------dr
To Cash a/c--------------------------------------------------cr
(Being paid salary)
20000
-------
----------
20000

26. 4)Withdrawal cash from business for
personal use 2000

27. 4)Withdrawal cash from business for
personal use 2000

28. 4)Withdrawal cash from business for
personal use 2000
Accounts
involved Debit/credit
Rule applied
personal-
Drawings
2000 (in) personal/c
Cash 20000 (out) Real a/c

29. 4)Withdrawal cash from business for
personal use 2000Accounts
involved Debit/credit
Rule applied
personal-
Drawings
2000 (in) personal/c
Cash 20000 (out) Real a/c
Date Particulars LF Debit Credit
4 Drawings a/c----------------------------------------------dr
To Cash a/c---------------------------------------------cr
(Being withdrawal cash from business for
personal use)
2000
------
-------
2000

30. 5)Purchased Furniture for 10000 in
cash

31. 5)Purchased Furniture for 10000 in
cash

32. 5)Purchased Furniture for 10000 in
cash
Accounts
involved Debit/credit
Rule applied
Furniture 10000 real a/c
Cash 10000 Real a/c

33. 5)Purchased Furniture for 10000 in
cash
Accounts
involved Debit/credit
Rule applied
Furniture 10000 (in) Real a/c
Cash 10000 (out) Real a/c

34. Date Particulars LF Debit Credit
5) Furniture a/c----------------------------------------------dr
To Cash a/c-------------------------------------------cr
(Being Purchased Furniture )
10000
--------
------------
10000
5)Purchased Furniture for 10000 in
cash
Accounts
involved Debit/credit
Rule applied
Furniture 10000 (in) Real a/c
Cash 10000 (out) Real a/c