The most important journal entries in Accounts
1. Opening Entry
When business starts with cash and furniture:
• Debit: Cash A/c ₹50,000
• Debit: Furniture A/c ₹20,000
• Credit: Capital A/c ₹70,000
2. Sales Entry
Selling goods worth ₹10,000 on credit:
• Debit: Debtors A/c ₹10,000
• Credit: Sales A/c ₹10,000
3. Purchase Entry
Buying goods worth ₹5,000 in cash:
• Debit: Purchases A/c ₹5,000
• Credit: Cash A/c ₹5,000
4. Expense Entry
Paying rent ₹2,000:
• Debit: Rent Expense A/c ₹2,000
• Credit: Cash A/c ₹2,000
5. Asset Purchase Entry
Buying machinery worth ₹15,000 by cheque:
• Debit: Machinery A/c ₹15,000
1. Opening Entry
When business starts with cash and furniture:
• Debit: Cash A/c ₹50,000
• Debit: Furniture A/c ₹20,000
• Credit: Capital A/c ₹70,000
2. Sales Entry
Selling goods worth ₹10,000 on credit:
• Debit: Debtors A/c ₹10,000
• Credit: Sales A/c ₹10,000
3. Purchase Entry
Buying goods worth ₹5,000 in cash:
• Debit: Purchases A/c ₹5,000
• Credit: Cash A/c ₹5,000
4. Expense Entry
Paying rent ₹2,000:
• Debit: Rent Expense A/c ₹2,000
• Credit: Cash A/c ₹2,000
5. Asset Purchase Entry
Buying machinery worth ₹15,000 by cheque:
• Debit: Machinery A/c ₹15,000
