Journal Entry Introduction

Class 11 Easy Way to learn Journal Entry. Read the whole notes you will get help in Preparation of Journal Entry.

Topics Covered

1. What is Journal Entry??
2. What is Entry??
3. What is Double Entry System???
4. Example of Journal Entry.    
5. Dr denotes - Dr
6. Cr  denotes - Cr 

What is Journal Entry ???

Journal Entry is the primary books of accounts where all transactions are recorded in a chronological manner. In journal there are two sides Debit and Credit.

What is entry??

Entry is a process where transactions are recorded. There will have two sides DEBIT and CREDIT.

What is Double Entry System???

In a Double Entry System of accounting we have two aspects Debit and Credit.In today we follow the rules of Double Entry System. We follow the rules of Double Entry System to prepare books of accounts.

Examples of Journal Entry are:

1. Purchase goods on cash of Rs.1500

       

  It's Journal Entry are:

          Purchase A/c.         Dr. 1500 

                  To cash A/c.                       1500

2. Sold goods on cash Rs. 1000

It's Journal Entry are:

         Cash A/c                       Dr  1000

                     To sales A/c.                     1000

3. Purchase goods on credit from Rahim of Rs.2500

It's Journal Entry are:

     Purchase A/c                  Dr 2500

            To Rahim A/c.                              2500

4. Sold goods on credit to Deepak of Rs. 5000.

It's Journal Entry are:

 Deepak A/c.                        Dr 5000

         To Sales A/c.                                      5000

5. Rent paid to landlord of Rs. 3500

It's Journal Entry are:

    Rent A/c.                      Dr. 3500

          To Cash.                                 3500

6. Salary Paid to  staff of Rs 7500

   It's Journal Entry are: 

          Salary A/c.                Dr  7500

                  To  cash A/c.                       7500

7. Business Started with capital of Rs. 50000. 

      It's Journal Entry are:

         Cash A/c                       Dr 50000

                   To Capital A/c.                     50000

8. Wages paid to workers of Rs. 2600.

            It's Journal Entry are:

              Wages A/c.                  Dr 2600

                          To Cash A/c.                    2600

9. Purchase Furniture of Rs 10000 on cash.

               It's Journal Entry are:

              Furniture A/c.             Dr.  10000

                        To Cash A/c.                       10000

10. Cash paid to Mohit of Rs. 2600.

             It's Journal Entry are:

           Mohit  A/c.                Dr 2600

                   To Cash A/c.                      2600

11. Sold goods Machinery of Rs. 7000 to Mohan.

Explanation: When goods purchased or sold and the name is mentioned of any person and if it is not written that purchase or sold in cash than always treat them On CREDIT.   

                                                                                                It's Journal Entry are:

            Mohan A/c.                Dr. 7000

                    To Sales A/c.                       7000