4E5N Journal Entries Checklist

No. Transactions Debit Credit

1 Buy goods on credit Inventory Trade payable
2 Sell goods on credit at $XXX Trade receivable Sales revenue
3 Sell goods costing $YYY Cost of sales Inventory
4 Return goods to credit supplier Trade payable Inventory
5 Goods returned by credit customer Sales returns Trade receivable
6 Cost of goods returned by credit customer Inventory Cost of sales
7 Cheque paid to credit supplier Trade payable Cash at bank
8 Cash discount received from credit supplier Trade payable Discount received
9 Cheque received from credit customer Cash at bank Trade receivable
10 Cash discount given to credit customer Discount allowed Trade receivable
11 Dishonoured cheque received from credit customer Trade receivable Cash at bank
Cash discount withdrawn from credit customer due to
12 rejected cheque Trade receivable Discount allowed
13 Payment of salaries expense by cash Salaries expense Cash in hand
14 Collection of rent income by cheque Cash at bank Rent income
15 Adjustment of prepaid expense at FY end Prepaid expense Expense
16 Adjustment of expense payable at FY end Expense Expense payable
17 Adjustment of income receivable at FY end Income receivable Income
18 Adjustment of income received in advance at FY end Income Income received in advance
19 Transfer of expense to income summary Income summary Expense
20 Transfer of income to income summary Income Income summary
21 Debt written off due to bankruptcy Allowance for impairment of TR Trade receivable
22 Increase in allowance for impairment of TR Impairment loss on TR Allowance for impairment of TR
23 Decrease in allowance for impairment of TR Allowance for impairment of TR Impairment loss on TR
24 Obtain bank loan Cash at bank Bank loan
25 Repay bank loan Bank loan Cash at bank
26 Owner withdrew inventory for personal use Drawings inventory
27 Owner contribute money into business bank Cash at bank Capital
No. Transactions Debit Credit
28 Transfer of drawings to capital Capital Drawings
29 Transfer of profit for the year to capital Income summary Capital
30 Transfer of loss for the year to capital Capital Income summary
31 Issue share capital to shareholders Cash at bank Share capital
32 Declared dividend to be paid in next FY Dividend Dividend payable
33 Declared dividend to be paid immediately Dividend Cash at bank
34 Transfer of dividend to retained earnings Retained earnings Dividend
35 Transfer of profit for the year to retained earnings Income summary Retained earnings
36 Transfer of loss for the year to retained earnings Retained earnings Income summary
37 Purchase of motor vehicle on credit Motor vehicles Trade payable
38 Sale of motor vehicle costing $xxx Sale of non-current asset Motor vehicle
39 Sale of motor vehicle with accumulated depreciation $yyy Accumulated depreciation Sale of non-current asset
40 Sale of motor vehicle at $zzz on credit Other receivable Sale of non-current asset
41 Depreciation of motor vehicle for the year Depreciation of MV Accumulated depreciation of MV
42 Impairment of inventory Impairment loss on inventory Inventory