TRANSACTIONS JOURNAL ENTRIES

Cash/ Bank A/c Dr.

Amount brought into the business as capital To Capital A/c

Cash A/c Dr.

Machinery A/c Dr.
Cash and other assets brought into the business
Land and Building A/c Dr.
To Capital A/c
Purchase A/c Dr.
Goods purchased on credit
To supplier A/c
Customer A/c Dr.
Sale of goods on credit
To Sales A/c
Purchase A/c Dr.
Goods purchased on cash
To Cash A/c
Cash A/c Dr.
Cash sales
To Sales A/c
Bank A/c Dr.
Opening a Bank Account To Cash A/c
To Capital A/c (if opened with personal cheques)
Cash A/c (Office Use) Dr.
Withdrawal of cash from the bank Drawing A/c (Personal Use) Dr.
To Bank A/c
Cash/Bank A/c (Net Amount) Dr.
Collection of cash/cheque from customers (and
Discount Allowed A/c (Discount) Dr.
discount allowed if any)
To Customer A/c
Supplier A/c Dr.
For payment of cash/cheque to suppliers (and
To Cash/Bank A/c (Net Amount)
discount received if any)
To Discount Received A/c (Discount)
Bad Debts A/c Dr.
Bad Debts
To Debtor
Cash/Bank A/c Dr.
Recovery of Bad Debts
To Bad Debts Recovered A/c
Machinery A/c Dr.
Purchase of machinery for cash
To Cash/Bank A/c
Depreciation A/c Dr.
Depreciation charged on assets
To Asset A/c
Cash/Bank A/c Dr.
Sale or disposal of any old asset at a loss Loss on Sale of Assets A/c Dr.
To Asset A/c
Cash/Bank A/c Dr.
Sale or disposal of any old asset at a profit To Asset A/c
To Gain (Profit) on Sale of Assets A/c
Returns Inward A/c Dr.
Goods returned by the customer
To Debtor A/c
Creditor A/c Dr.
Goods returned to the supplier
To Return Outward A/c
Advertisements/Free Sample A/c Dr.
Distribution of goods as a free sample To Purchase A/c (Trader)
To Trading A/c (Manufacturing)
Bank A/c (Insurance Claim Received) Dr.
Or
For abnormal loss of goods (Fire/Stolen) Insurance Claim A/c (Insurance Claim Admitted) Dr.
Abnormal Loss A/c (Insurance Claim Not Admitted) Dr.
To Purchase A/c
Bills Receivables A/c Dr.
Drawing a Bill of Exchange on the debtor
To Debtor A/c
Creditor A/c Dr.
Acceptance of a Bill of Exchange
To Bills Payable A/c