Examples of Journal Entry and Entity Concept

 

Methods of Accounting:

1. Cash Basis

2. Accrual Basis

1. Cash Basis: Cash Basis is a process wahere all  money received in cash only and all payments made in cash only will be considered. 

2. Accrual Basis: Accrual Basis is a process whether money is received in cash or not or paid in cash or not will be considered.

 

Entity Concept:

Business and businessman are two separate identities or entities . Business transactions are recorded in the books of business and from the point of views the business. When a proprietor invest money into business as capital, then he is treated as creditor of the business.

Example of Journal Entry are: 

Some important journal entry are discussed below. Please watch the notes it is going to help you in preparing for Your examination. Journal is a primary books of accounts.

Narrations:    Narrations is the brief description about the entry passed in books of accounts.

Note: Dr denotes - Debit

           Cr or To denotes - Credit

Let's solved the different types of problems:

1.  Business started with capital of Rs. 250000.

        It's Journal Entry are: 

          Cash A/c.                    Dr 250000

                      To Capital A/c.                  250000

                (Being Business started.)

2. Cash paid to Rohan of Rs.2800

        It's Journal Entry are:

               Rohan A/c.             Dr 2800

                         To Cash A/c.                2800

            (Being cash paid to Rohan.)

3. Goods Sold on credit to Rohit and. Co. Rs 500.

   

           It's Journal Entry are:

          

              Rohit and Co. A/c.      Dr 500

                       To Sales A/c.                     500

         (Goods Sold on credit).

4. Furniture purchased on cash of Rs. 12000.

         It's Journal Entry are:

            Furniture A/c.            Dr 12000

                   To Cash A/c.                          12000

    (Furniture purchased on cash).

5. Cash received from Meraj of Rs. 3800

       It's Journal Entry are:

          Cash A/c.                    Dr. 3800

                 To Meraj A/c.                      3800

        (Cash received).

6. Salary paid to staff of Rs. 4500

        It's Journal Entry are:

            Salary A/c.             Dr. 4500

                   To Cash A/c.                    4500

        (Salary paid to Staff).

7. Rent received from Rohit of Rs.4800

           It's Journal Entry are: 

            Cash A/c                       Dr. 4800

                        To Rent A/c.                     4800

8. Cash  deposited into Bank of Rs 8000

           It's Journal Entry are:

   

                Bank A/c.             Dr 8000

                       To Cash A/c.                 8000

9. Cash withdrawn from Bank of Rs. 4500

         It's Journal Entry are:

          Cash A/c.                  Dr.  4500

                To Bank A/c.                         4500

        ( Cash withdrawn from Bank).

10. Purchase stationery of Rs 600.

             It's Journal Entry are:

           Stationery A/c.           Dr 600

                    To Cash A/c.                     600

11. Cash Withdrawn from business for personal use of Rs 5600

         It's Journal Entry are:

            Drawings A/c.        Dr 5600

                   To Cash A/c.              5600

12. Cash sales of Rs. 15000.

      It's Journal Entry are:

            Cash A/c.                     Dr. 15000

                     To Sales A/c.                         15000

         (Cash Sales).

13. Purchase goods on cash of Rs 1900

           It's Journal Entry are:

             Purchase  A/c.              Dr 1900

                     To Cash A/c.                         1900

        (Purchased goods on cash).

14. Cheque received from Rehan  of Rs 1500.

            It's Journal Entry are:

       Bank A/c.                     Dr.   1500

                 To Rehan A/c.                    1500

     ( Cheque received from Rehan.)

15. Electricity bill paid of Rs 3600

         It's Journal Entry are:

        Electricity bill A/c    Dr.  3600

                  To Cash A/c.                      3600

        (Electricity bill paid).

 

Note: This is going to help in Preparation for Your school examination for class 11 and I will further give you a suggestion for studying acconts. In next topic we are going to cover some advance examples of Journal and also the other concept related to accounts.  So follow us for more details regarding the accounts and please comment. # Think Different.