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Journal Entries $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Balance Sheet $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

How can make the journal entries

In the accounting education, making of journal is very important. Because without making journal entries, we can not calculate the result of business in the form of profit and loss account and balance sheet. So please care fully get the education of making journal.

Journal accepts the rules of double entry system. Rule for making journal

Every rule has two parts

  • First rule for personal accounts

  1. Who is receiver = Debit
  2. Who is giver = Credit
  • 2nd Rule for real accounts

  1. What comes in business = Debit
  2. What goes from business = Credit

  • 3rd Rule for nominal accounts

  1. All the expenses and losses = Debit
  2. All the incomes and gains = Credit

  • Practical example for making journal →

Suppose Ram purchase goods of Rs. 10000 from Sham @ 10% trade discount on credit. After 15 days. Ram pays full settlement of all money with @ 10% cash discount.

Journal Entries in the books of Ram

Because goods comes in Ram’s business so Purchase account will debit with Rule 2nd and its first part

Because Sham is giver of goods so he is giver and account with his name will be credit with rule 1st and its second part after this we will pass the journal entry

Purchase account Dr. 9000

To Sham Account 90000

  • After 15 days will pass second journal entry in ram books

Sham Account ( He is the receiver ) Dr. 9000

To Cash Account ( it goes out of business ) 8100

To Discount Received ( It is the income of business 900

Comments

: 12
  1. your tally education is so wounderful thanks from bottom my hart ..
    again so manny thanks can u a call me my no is 7377143000 from orissa my self dinesh kumar my mail ID is dinesh.kumar.bard@gmail.com

    ReplyDelete
  2. ITS VRY USEFUL 4 BASIC KNOWLEDGE OF ACCOUNTING

    ReplyDelete
  3. Sir, Your Accounting Education is very useful and very clear to understand. I am very thankful for spending your time to educate and clear our queries. I am working in a Manufacturing Company in Kerala. Kindly help me with the Accounting Records, Books, to be maintained with formats either in excel or doc. I need the formats in excel for Day-wise Petty Cash expenses, Receipts and Payment both in Cash and Bank, Inward and Outward records, Finished products Stock records and payroll.

    Also I Have some queries..Kindly clear that too...
    1. Wages A/c comes under direct expenses or provision. (Correct me if I am wrong; I think it should come under direct expenses whereas salary to office staff comes under indirect expense; but i am dilemma coz our tax consultant who maintains our accounts in Tally has mentioned the wages under provisions.) 2. Required journal entries with narration for Advance Wages paid through cash For Ex: Advance to Umesh Rs. 500/- (his actual wages is 9000) 3) Required journal entries with narration for Cash received for petty cash expenses. For Ex March 03,2014, Cash received for petty expenses Rs. 5,000/- 4) Can we mention purchase of sugar or milk under Miscellaneous or Need to maintain other Ledger. However Food expenses that is incurred is mentioned in Tea & Refreshment Ledger., under indirect expense. 5) Purchase of New Machinery Parts

    ReplyDelete
  4. srijeet
    both the effects are correct but .... it is approrriate to record it under direct expenses if u having any type of factory...... or u have normal office activity then it will shown under provisions

    ReplyDelete
  5. thanks for your basics .. its useful for beginner ..

    ReplyDelete
  6. it looks simple but i didn't undertand

    ReplyDelete
  7. Sir u use 9ooo and 90000 . iam confused. Pls help

    ReplyDelete
  8. it is a good piece of knowledge to those who want to learn accounting and Tally-erp later. thanks!

    ReplyDelete
  9. Salary paid to dinesh jurnal eantry

    ReplyDelete
  10. Dear sir your explanation is so helpful,so i appreciate for your deep root knowledge of basice and advance accounting principle and golden rule.

    ReplyDelete
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Accounting Education: How can make the journal entries
How can make the journal entries
Accounting Education
https://www.svtuition.org/2008/09/how-can-make-journal-entries.html
https://www.svtuition.org/
https://www.svtuition.org/
https://www.svtuition.org/2008/09/how-can-make-journal-entries.html
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