Journal Entries & Ledger Accounts In-class exercise

Accounting equation Template

Sr. Transaction Accounting Equation effect

Assets + Expenses = Liabilities+ income
Increase Decrease Decrease
Debit Credit Debit
1 Capital in cash +800,000
2 Machinery Purchase +300,000 -15,000
3 Bank Deposite +600,000 -600,000
4 Office Furniture Purchased +100,000 -100,000
5 Goods Purchased (Bhanu & co.) +550,000 -200,000

6 Goods sold to Prashant (only recoed the sales

transaction) +600,000
7 Goods Sold for cash +125,000
8 Cheque Issued (Bhanu & co) -150,000 -150,000

9 Cheque received (prashant) (Receivable goes

down and bank balance increases) +500,000 -500,000
10 Withdrawal for personal use -75,000
Sub-total +3,575,000 -1,640,000 -150,000
Balance +1,935,000
Total of Assets & (Liabilities + Capital) +1,935,000

Journal Entry Template

Date Particulars Dr/Cr Ledger Folio Debit Rs Credit Rs.

1-Apr-20 Cash A/c.. Dr 800,000
To Capital A/c Cr 800,000
(Being Capital introduced in buisness)

5-Apr-20 Machinery A/c Dr 300,000

To Cash A/c Cr 15,000
To Dues to Machinery A/c Cr 285,000
(Being machinery purchased on cash and credit)

10-Apr-20 Bank A/c Dr 600,000

To Cash A/c Cr 600,000
(Being cash deposited in bank)

15-Apr-20 Furniture A/c Dr 100,000

To Bank A/c Cr 100,000
(Being furniture purchased by cheque)

1-May-20 Purchases A/c Dr 550,000

To cash A/c Cr 200,000
 To Bhanu & co. A/c Cr 350,000
(Being goods purchased by cash and on credit)

15-May-20 Prashant A/c Dr 600,000

To Sales A/c Cr 600,000
(Being goods sold to Prashant on credit)

30-May-20 Cash A/c Dr 125,000

To Sales A/c Cr 125,000
(Being goods sold )

15-Jun-20 Bhanu & Co A/c Dr 150,000

To Bank A/c Cr 150,000
(Being cheque issued to Bhanu and co)

30-Jun-20 Bank A/c Dr 500,000

To Prashant A/c Cr 500,000
(Being cheque received from Prashant)

30-Jun-20 Drawing A/c DR 75,000

To Cash A/c Cr 75,000
(Being cash withdrawn for personal use)

Total 3,800,000 3,800,000

counting Equation effect
Liabilities+ income + Capital
Increase Decrease Increase
Credit Debit Credit
+800,000
+285,000

+350,000

+600,000
+125,000

-75,000
+1,360,000 -75,000 +800,000
+1,210,000 +725,000
+1,935,000

Ledger Accounts Template

XYZ & Co. : Capital A/C
Date Particulars Ref No Debit Rs

Total 0

XYZ & Co. : Cash A/C

Date Particulars Ref No Debit Rs
1-Apr-20 To Capital A/c 2020 JR 001 800,000
30-May-20 To Sales A/c 125,000

Total 925,000

XYZ & Co. : Bank A/C

Date Particulars Ref No Debit Rs
10-Apr-20 To Cash A/c 600,000
30-Jun-20 To Prashant A/c 500,000
 Total 1,100,000

XYZ & Co. : Machinery A/C

Date Particulars Ref No Debit Rs
5-Apr-20 To Cash A/c 2020 Jr 002 15,000
To Dues to Machinery A/c 2020 Jr 002 285,000

Total 300,000

XYZ & Co. : Dues for Machinery A/C

Date Particulars Ref No Debit Rs

Total 0

XYZ & Co. : Furniture A/C

Date Particulars Ref No Debit Rs
15-Apr-20 To Bank A/c 100,000

Total 100,000

XYZ & Co. : Purchases A/C

Date Particulars Ref No Debit Rs
1-May-20 To cash A/c 200,000
1-May-20 To Bhanu & co. A/c 350,000

Total 550,000

XYZ & Co. : Bhanu & Co. A/C

Date Particulars Ref No Debit Rs
15-Jun-20 To Bank A/c 150,000

Total 150,000

XYZ & Co. : Prashant A/C

Date Particulars Ref No Debit Rs
15-May-20 To Sales A/c 600,000

Total 600,000

XYZ & Co. : Sales A/C

Date Particulars Ref No Debit Rs

Total 0
 XYZ & Co. : Drawings A/C
Date Particulars Ref No Debit Rs
30-Jun-20 To Cash A/c 75,000

Total 75,000
XYZ & Co. : Capital A/C
Date Particulars Ref No Credit Rs
1-Apr-20 By Cash A/c 2020 JR 001 800,000

Total 800,000

XYZ & Co. : Cash A/C

Date Particulars Ref No Credit Rs
5-Apr-20 By Machinery A/c 2020 Jr 002 15,000
10-Apr-20 By Bank A/c 600,000
1-May-20 By Purchase A/c 200,000
30-Jun-20 By Drawings A/c 75000

Total 890,000

XYZ & Co. : Bank A/C

Date Particulars Ref No Credit Rs
15-Apr-20 By Furniture A/c 100,000
15-Jun-20 By Bhanu & co A/c 150,000
 Total 250,000

XYZ & Co. : Machinery A/C

Date Particulars Ref No Credit Rs

Total 0

XYZ & Co. : Dues for Machinery A/C

Date Particulars Ref No Credit Rs
5-Apr-20 By Machinery A/c 2020 Jr 002 285,000

Total 285,000

XYZ & Co. : Furniture A/C

Date Particulars Ref No Credit Rs

Total 0

XYZ & Co. : Purchases A/C

Date Particulars Ref No Credit Rs

Total 0

XYZ & Co. : Bhanu & Co. A/C

Date Particulars Ref No Credit Rs
1-May-20 By Purchase A/c 350,000

Total 350,000

XYZ & Co. : Prashant A/C

Date Particulars Ref No Credit Rs
30-Jun-20 By Bank A/c 500,000

Total 500,000

XYZ & Co. : Sales A/C

Date Particulars Ref No Credit Rs
15-May-20 By Prashant A/c 600,000
30-May-20 By Cash A/c 125,000

Total 725,000
XYZ & Co. : Drawings A/C
Date Particulars Ref No Credit Rs

Total 0
Trial Balance as on 30-6
DR Total Cr Total Net Dr Net Cr
Capiltal A/C 0 800,000 800,000
Cash A/c 925,000 890,000 35,000
Bank A/c 1,100,000 250,000 850,000
Machinery A/c 300,000 0 300,000
Dues for Machinery A/c 0 285,000 285,000
Furniture A/c 100,000 0 100,000
Purchases A/c 550,000 0 550,000
Bhanu & co A/c 150,000 350,000 200,000
Prashant A/c 600,000 500,000 100,000
Sales A/c 0 725,000 725,000
Darwings A/c 75,000 0 75,000

Total 3,800,000 3,800,000 2,010,000 2,010,000