The document introduces basic accounting concepts, focusing on the journal, which records business transactions chronologically. It provides various examples of journal entries for cash and credit transactions, including purchases, sales, returns, and asset transactions. The author indicates that future posts will cover additional accounting topics related to income, expenses, and other financial transactions.

1. WELCOME TO THE
WORLD OF ACCOUNTING
BY
SUBBU PULLELA

2. Journal is derived from the
French word “Jour” which means a day.
Journal means a daily record of
business transactions. All transactions
are first recorded in the journal as and
when they occur. The record is
chronological, otherwise it would be
difficult to maintain the records in an
orderly manner.
JOURNAL

3. The form of the journal is given below:
Date Particulars L.F.
Amount
Dr.
Amount
Cr.
Date
Mon
th
Year
Name of the A/c
Debited
To Name of the
A/c Credited
Page.
No.
on
whic
h the
A/c is
writt
en up
is
enter
ed
Amount
to be
Debited
Amount
to be
Credited
Now we will learn some journal entries.

4. 1st March, Bought goods for cash ₹ 50,000
Transactions relating to purchase and sale of
goods for cash:
Purchase A/c..........Dr 50,000
To Cash A/c 50,000
(Being the goods purchased
for cash)
2nd March, Sold goods for cash ₹ 20,000
Cash A/c.....................Dr 20,000
To Sales A/c 20,000
(Being the goods sold for
Cash)
3rd March, Purchased goods for cash from Siva for
₹ 10,000
Purchase A/c..........Dr 10,000
To Cash A/c 10,000
(Being the goods purchased
for cash from Siva)
4th March, Sold goods to Raheem for ₹ 7,000
Cash A/c.....................Dr 20,000
To Sales A/c 20,000
(Being the goods sold for
Cash to Raheem)

5. 1st March, Sold goods to Ram on credit ₹ 25,000
Transactions relating to purchase and sale of
goods for credit:
Ram A/c…................Dr 25,000
To Sales A/c 50,000
(Being the goods sold on
On credit to Ram.)
2nd March, Bought goods on account from surya
₹ 50,000
Purchase A/c..........Dr 50,000
To Surya A/c 50,000
(Being the goods purchased
from surya on credit.)
3rd March, Purchased goods from arya ₹ 10,000
Purchase A/c..........Dr 10,000
To Arya A/c 10,000
(Being the goods purchased
from Arya on credit)

6. 10th March, Ram returned goods worth ₹ 2,500
Transactions relating to Return of goods:
Sales Return A/c.....Dr 2,500
To Ram A/c 2,500
(Being the goods returned
to Ram)
11th March, Returns goods to Surya ₹ 5,000
Surya A/c....................Dr 5,000
To Purchase Returns A/c 5,000
(Being the goods returned
to Surya)
12th March, Returned goods to Arya of ₹ 1,000
Arya A/c………...........Dr 1,000
To Purchase Returns A/c 1,000
(Being the goods returned
to Arya)
13th March, Returned goods to Narendra ₹ 1,500.
Previously bought for cash
Cash A/c.....................Dr 1,500
To Purchase Returns A/c 1,500
(Being the goods sold for
Cash to Raheem)

7. 1st May, Purchased building of ₹ 5,00,000
Transactions relating to Purchase and Sale of
Assets:
Building A/c……….....Dr 5,00,000
To Cash A/c 5,00,000
(Being the Building purchased
for cash)
2nd May, Bought furniture from Godrej & Co. ₹ 10,000
Furniture A/c…………Dr 10,000
To Godrej & Co. A/c 10,000
(Being the furniture purchased
for credit)
3rd May, Sold old machinery ₹ 20,000
Cash A/c………...............Dr 20,000
To Machinery A/c 20,000
(Being the Machinery sold
for cash)
4th May, Sold old typewriter to Venkat for ₹ 2,500.
Venkat A/c.....................Dr 2,000
To Typewriter A/c 2,000
(Being the sold on credit basis)

8. In the next post I’ll show you
 Transactions related to Income and
Expenses.
 Transactions related to Receipts and
Payments
 Transactions related to Proprietor
 Transactions related to Discount
 Transactions related to Bad Debts