Personal Account

The account which deals with all types of natural persons,

artificial persons and representative persons such as Ram, Rohan,
Akash, Company , School , Bank, Capital , drawings etc known
as Personal Account. Personal Account are following three types:
1.Natural person’s personal account : The account which records
all the transaction relating to human being called as natural
person’s personal account. (Ex-Rohan Account)
2. Artificial person’s personal account : The account which
records all the transactions relating to artificial person created by
law or otherwise called as artificial person’s personal account
(Ex- SBI, BIITM, DAV School)
3. Representative person’s personal account: An account
indirectly representing a person or persons is known as
representative person’s personal account. (Capital , Drawings)
 Real Account
The account which deals with all types of assets
(Properties ) such as Land, Building, Machinery,
Patent, Copyright , Cash and Stock etc called Real
Account. Real Account can be of following types
1. Tangible Real account: Assets which can be seen or
touch are known as tangible real account. (Ex-
Machinery, Furniture , Cash)
2. Intangible Real Account: Assets which can’t be
touched physically but can be measured are known
as Intangible Real Account.(Goodwill, Patent, Trade
Mark, Copyright)
 Nominal Account
The account which deal with all types
incomes, expenses, losses and gain such
as Sale, Purchase, Salary, Rent, Fire loss,
profit etc known as Nominal Account
Rules of Debit & Credit
 Journal
The word Journal is derived from Latin word
‘Jour’ which means a day

Journal means a day book or daily record of

business transaction.

Journal is chronological records of business

transaction showing the accounts to be debited
and credited and amounts to be debited and
credited
 Cont…d
The process of recording a transaction in
Journal is called Journalizing

Entries made in the Journal book are called

Journal entries

Journal is otherwise known as book of

original entry
Journalize following transactions
2020
Jan1 .Business started with cash Rs.10,00,000
Jan 2. Goods purchased for cash Rs.3,00,000
Jan 3. Furniture purchased for cash Rs. 30,000
Jan 5. Goods sold for cash Rs. 1,50,000
Jan 6. Goods purchased from Rakesh on Credit Rs. 2,00,000
Jan 7. Salary paid Rs. 50,000
Jan 8. Rs. 20,000 taken by owner for his personal use
Jan 9. Goods sold to Rohan on credit Rs. 100,000
Jan 10. Cash deposited in bank Rs. 2,00,000
Jan 11. Payment made to Rakesh Rs. 2,00,000
 Journal Entries
Date Particulars L.F Debit Amount Credit Amount
(Rs) (Rs.)

2020 Cash A/c ………………..Dr 10,00,000

Jan 1 To Capital A/c 10,00,000
( Being business started with
cash)
Jan 2 Purchase A/c ………… Dr 3,00,000
To Cash A/c 3,00,000
(Being goods purchase for
cash)
Jan 3 Furniture A/c ………… Dr 30,000
To Cash A/c 30,000
(Being furniture purchased for
cash)
Jan 5 Cash A/c……………….Dr 1,50,000
To Sales A/c 1,50,000
(Being goods sold for cash)
 Journal Entries
Date Particulars L.F Debit Amount Credit Amount
(Rs) (Rs.)

Jan 6 Purchase A/c……………..Dr 2,00,000

To Rakesh A/c 2,00,000
( Being goods purchased from
Rakesh on credit)
Jan 7 Salary A/c ………… Dr 50,000
To Cash A/c 50,000
(Being salary paid )

Jan 8 Drawings A/c ………… Dr 20,000

To Cash A/c 20,000
(Being cash taken by owner
for personal use)
Jan 9 Rohan A/c……………….Dr 1,00,000
To Sale A/c 1,00,000
(Being goods sold to Rohan
on credit )
 Journal Entries
Date Particulars L.F Debit Amount Credit Amount
(Rs) (Rs.)

Bank A/c ……………..Dr 2,00,000

Jan 10 To Cash A/c 2,00,000
( Being cash deposited in
bank)
Jan 11 Rakesh A/c ………… Dr 2,00,000
To Cash A/c 2,00,000
(Being payment made to
Rakesh)
Journalize following transactions
2019
April 1. Business commenced with cash Rs. 18,00,000 and goods
worth Rs. 2,00,000 by owner
April 2. Goods purchased for cash Rs.5,00,000
April 3. A computer purchased for cash Rs. 30,000
April 4. Goods sold for cash Rs. 3,00,000
April 5. Goods purchased from Swadesh on Credit Rs. 4,00,000
April 6. Rent paid Rs. 20,000
April 7. Goods sold to Ramesh Rs. 3,00,000
April 10. Goods worth Rs.5,000 is distributed as free sample
April 11. Rs. 10,000 given as donation
April. 12. Cash paid to Swadesh Rs. 3,90,000 and discount Rs.10,000
allowed by him
Journalize following transactions
April 13. Cash received from Ramesh Rs. 2,98,000 in full
settlement of his account.
April 14. Goods sold to Aryan on credit Rs. 1,40,000
April 15. Goods purchased from Ronak on credit Rs. 1,50,000
April 16. Goods worth Rs. 20,000 returned by Aryan due to
defective
April 17. Goods worth Rs. 15,000 return to Ronak as found damage
after opening the packet.
April 18. Cash paid to Ronak Rs. 1,33,000 in full settlement of his
account
April 19. Aryan declared insolvent and no amount received from
him
April 20. Cash sale Rs.50,000
 Journal Entries
Date Particulars L.F Debit Amount Credit Amount
(Rs) (Rs.)

2019 Cash A/c …………………..Dr 18,00,000

April1 Purchase A/c …………… ..Dr 2,00,000
To Capital A/c 20,00,000
( Being business started by
owner by introducing cash
and goods )
April 2 Purchase A/c ………… Dr 5,00,000
To Cash A/c 5,00,000
(Being goods purchase for
cash)
April 3 Computer A/c ………… Dr 30,000
To Cash A/c 30,000
(Being computer purchased
for cash)
April 4 Cash A/c……………….Dr 3,00,000
To Sale A/c 3,00,000
(Being goods sold for cash)
 Journal Entries
Date Particulars L.F Debit Amount Credit Amount
(Rs) (Rs.)

April 5 Purchase A/c ……………..Dr 4,00,000

To Swadesh A/c 4,00,000
( Being goods purchased from
Swadesh on credit)
April 6 Rent A/c ……………….. Dr 20,000
To Cash A/c 20,000
(Being rent paid)

April 7 Ramesh A/c ………… Dr 3,00,000

To Sale A/c 3,00,000
(Being goods sold to Ramesh
on credit )
April 10 Advertisement A/c.……….Dr 5000
To Purchase A/c 5000
(Being goods distributed as fee
sample )
 Journal Entries
Date Particulars L.F Debit Amount Credit Amount
(Rs) (Rs.)

April 11 Donation A/c ……………..Dr 5,000

To Cash A/c 5, 000
( Being cash given as
Donation)
April 12 Swadesh A/c ………… Dr 4,00,000
To Cash ………….A/c 3,90,000
To Discount Received 10,000
A/c
(Being cash paid to Swadesh
and discount allowed by him)
April 13 Cash A/c …………….... Dr 2,98,000
Discount Allowed A/c Dr 2,000
To Ramesh A/c 3,00,000
(Being cash received from
Ramesh and discount allowed
to him)
 Journal Entries
Date Particulars L.F Debit Amount Credit Amount
(Rs) (Rs.)

April 14 Aryan A/c ………………Dr 1,40,000

To Sales A/c 1,40,000
( Being goods sold to Aryan
on credit)
April 15 Purchase A/c ……………..Dr 1,50,000
To Ronak A/c 1,50,000
(Being goods purchase from
Ronak on credit )
April 16 Sales Return A/c ………. Dr 20,000
To Aryan A/c 20,000
(Being goods return by Aryan
due to defective )
April 17 Ronak A/c……………….Dr 15,000
To Purchase Return A/c 15,000
(Being goods returned to
Ronak due to damage)
 Journal Entries
Date Particulars L.F Debit Amount Credit Amount
(Rs) (Rs.)

April 18 Ronak A/c …………….. Dr 1,35,000

To Cash A/c 1,33,000
To Discount Received 2,000
A/c
( Being cash paid to Ronak
and discount received from
him)
April 19 Baddebt A/c ………… Dr 1,20,000
To Aryan A/c 1,20,000
(Being Aryan declared bad
debt and no amount received
from him )
April 20 Cash A/c ………… Dr 50,000
To Sales A/c 50,000
(Being goods sold for cash)
 Pass necessary journal entries in books of
Ganesh Enterprise
2018
Jan 1 Business started with cash Rs.30,00,000
Jan 2 Bought goods for Rs. 15,00,000
Jan 3 Cash deposited in bank Rs. 5,00,000
Jan 4 Goods sold to Ritesh Rs. 2,00,000
Jan 5 Goods sold for cash Rs. 3,00,000
Jan 7 Goods purchased from Surendra Rs.4,00,000
Jan 8 Furniture purchased for Rs. 50,000
Jan 9 Rent paid Rs. 20,000
Pass necessary journal entries in books of Ganesh Enterprise

Jan 10 Income tax paid Rs. 40,000

Jan 11 Goods worth Rs.2,00,000 purchased and trade discount
of 10 % allowed by seller
Jan 12 Commission received Rs.15,000
Jan 13 Goods worth Rs .5000 given as free sample
Jan 14 Ritesh declared insolvent ,being 40 paisa of a rupee
received from him
Jan 15 Stationary purchased for Rs. 10,000
Jan 20 Payment made to Surendra Rs.4,00,000 by Cheque
Jan 21 Computer purchased for Rs. 20,000
Jan 23 Salary paid Rs.50,000