Transaction Accounts Involved Nature of Accounts How effected Debit/ Journal Entry

Credit
Anand Commenced Cash A/c Real Coming In Debit Cash A/c …………...Dr.
the business with Capital A/c Personal Giver Credit To Capital A/c
cash
Goods Purchased Purchases A/c Real Coming In Debit Purchases A/c…….Dr
Cash A/c Real Going Out Credit To Cash A/c
Goods Purchased Purchases A/c Real Coming In Debit Purchases A/c…….Dr
from Kishore for Cash Cash A/c Real Going Out Credit To Cash A/c
Goods Purchased Purchases A/c Real Coming In Debit Purchases A/c…….Dr
from Kishore Kishore A/c Personal Giver Credit To Kishore A/c
Goods Return to Purchases Return A/c Real Going Out Credit Kishore A/c…….….Dr
Kishore Kishore A/c Personal Receiver Debit To Purch Return A/c
Cash paid to Kishore Kishore A/c Personal Receiver Debit Kishore A/c………..Dr
Cash A/c Real Going Out Credit To Cash A/c
Machinery Purchased Machinery A/c Real Coming In Debit Machinery A/c…..Dr
Cash A/c Real Going Out Credit To Cash A/c
Any Asset (Building, Asset (Name) A/c Real Coming In Debit Asset (Name)A/c..Dr
Plant&Machinery, Cash A/c Real Going Out Credit To Cash A/c
Furniture,Computer
etc.,) Purchased
Any Asset (Building, Asset (Name) A/c Real Coming In Debit Asset (Name)A/c..Dr
Plant&Machinery, Mohan A/c Personal Giver Credit To Mohan A/c
Furniture,Computer
etc.,) Purchased
from Mohan

Goods Sold Cash A/c Real Coming In Debit Cash A/c………………Dr

Sales A/c Nominal Income Credit To Sales A/c
Goods Sold to Giri for Cash A/c Real Coming In Debit Cash A/c………………Dr
Cash Sales A/c Nominal Income Credit To Sales A/c
Goods Sold to Giri Giri A/c Personal Receiver Debit Giri A/c….……………Dr
Sales A/c Nominal Income Credit To Sales A/c
Goods Returned by Sales Return A/c Nominal Loss Debit Sales Return A/c….Dr
Giri Giri A/c Personal Giver Credit To Giri A/c
Cash Received From Cash A/c Real Coming In Debit Cash A/c…………..Dr
Giri Giri A/c Personal Giver Credit To Giri A/c
Machinery Sold Cash A/c Real Coming In Debit Cash A/c…………..Dr
Machinery A/c Real Going Out Credit To Machinery A/c
Asset Sold to Raju Asset A/c Real Coming In Debit Cash A/c…………..Dr
Raju A/c Real Going Out Credit To Asset A/c
Cash Deposited in the Cash A/c Real Going Out Credit Bank A/c………….Dr
Bank Bank A/c Personal Receiver Debit To Cash A/c
Cash withdrawn for Cash A/c Real Coming In Debit Cash A/c………….Dr
office use Bank A/c Personal Giver Credit To Bank A/c
Cash withdrawn for Drawings A/c Personal Receiver Debit Drawings A/c…..Dr
persona/domestic Bank A/c Personal Giver Credit To Bank A/c
use
Goods withdrawn for Drawings A/c Personal Receiver Debit Drawings A/c…..Dr
office use Purchases A/c Real Going out Credit To Purchases A/c
Paid Stationery Stationery A/c Nominal Expenses Debit Stationery A/c………….Dr
Cash A/c Real Going Out Credit To Cash A/c
Rent paid Rent A/c Nominal Expenses Debit Rent A/c………….Dr
Cash A/c Real Going Out Credit To Cash A/c
Salaries Paid Salaries A/c Nominal Expenses Debit Salaries A/c………….Dr
Cash A/c Real Going Out Credit To Cash A/c
Advertisement Exp. Advertisement Exp. Nominal Expenses Debit Advertisement Exp. A/c………….Dr
Paid A/c Real Going Out Credit To Cash A/c
Cash A/c
Postage Paid Postage A/c Nominal Expenses Debit Postage A/c………….Dr
Cash A/c Real Going Out Credit To Cash A/c
Sundry Exp. Paid Sundry Exp. A/c Nominal Expenses Debit Sundry Exp. A/c………….Dr
Cash A/c Real Going Out Credit To Cash A/c
Heating Exp. Paid Heating Exp. A/c Nominal Expenses Debit Heating Exp. A/c………….Dr
Cash A/c Real Going Out Credit To Cash A/c
Wages Paid Wages A/c Nominal Expenses Debit Wages A/c………….Dr
Cash A/c Real Going Out Credit To Cash A/c
Interest Received Cash A/c Real Coming In Debit Cash A/c……………..Dr
Interest Received A/c Nominal Income Credit To Interest Received A/c
Commission Received Cash A/c Real Coming In Debit Cash A/c……………..Dr
Commission Received Nominal Income Credit To Commission Received A/c
A/c
Dividend Received Cash A/c Real Coming In Debit Cash A/c……………..Dr
Dividend Received Nominal Income Credit To Dividend Received A/c
A/c
Cash given for Charity Charity A/c Nominal Expenses Debit Charity A/c………….Dr
Cash A/c Real Going Out Credit To Cash A/c
Goods given for Charity A/c Nominal Expenses Debit Charity A/c………….Dr
Charity Purchases A/c Real Going Out Credit To Purchases A/c
Depreciation on Depreciation A/c Nominal Loss Debit Depreciation A/c…….Dr
Machinery Machinery A/c Real Going Out Credit To Machinery A/c
Outstanding Rent Rent A/c Nominal Expense Debit Rent A/c…………………Dr
Outstanding Rent A/c Personal Giver Credit To Outstanding Rent A/c
Prepaid (Advance) Salary A/c Nominal Expenses Reduced Credit Prepaid Salary A/c……Dr
Salary Prepaid Salary A/c Personal Receiver Debit To Salary A/c
 COMPOUNDING ENTRY
Two or more entries are compounded in to one entry

Ex: Business commenced (started) by Hemanth with

Cash Rs.10,000/-,

Furniture worth of Rs.6,000/-,

Machinery worth of Rs.15,000/-

Journal Entries

1. Cash A/c……………Dr. 10,000/- 2. Furniture A/c…………Dr. 6,000/- 3. Machinery A/c ……Dr 15,000
To Capital A/c 10,000/- To Capital A/c 6,000/- To Capital A/c 15,000
 COMPOUND ENTRY
Cash A/c ……………... Dr 10,000/-
Furniture A/c …….… Dr 6,000/-
Machinery A/c …….. Dr 15,000/-
To Capital A/c……………..31,000/-

Transaction Accounts Involved Nature of How effected Debit/ Journal Entry

Accounts Credit
Cash paid to Vishal Vishal A/c Personal Receiver Debit Vishal A/c ……..Dr 3,500
Rs.3,200 and Cash A/c Real Going Out Credit To Cash A/c 3,200
discount received Discount Received A/c Nominal Gain Credit To Discount 300
Rs.300 Received A/c
Cash Received from Cash A/c Real Coming In Debit Cash A/c……………………………….Dr 2,400
Rahul Rs.2,400 and Discount Allowed A/c Nominal Loss Debit Discount Allowed A/c…………..Dr 100
discount allowed Vishal A/c Personal Giver Credit To Vishal A/c 2,500
Asset Cost Rs.9,000 Cash A/c Real Coming In Debit Cash A/c………………………………Dr 10,500
sold for Rs.10,500 Profit & Loss A/c Nominal Gain Credit To Asset A/c 9,000
Asset A/c Real Going Out Credit To P&L A/c 1,500