Basic Journal Entries Examples – Accounts Class XI

Basic Journal Entries Examples, discussed here under are for various types of expenses, income, assets and liabilities that take place during the normal course of business.




Basic Journal Entries Example 1

Carriage Inward Journal Entry – Accounts

Meaning of Carriage Inwards

Where goods,  or any other item is purchased by the company, it we have to increase certain freight charges,  to bring the goods from the warehouse of the seller, to the place of the purchaser. The freight or other carriage amount paid by the purchaser is known as carriage inwards. The use of the word in words suggest, that the goods are coming to the purchaser.

Question 1:

What would be the Journal Entry for Carriage Inwards paid amounting to Rs. 100 in Cash for purchase of goods ?

Explanation:

Since Cartage is an expense, so, Carriage  Inwards A/c would be debited, because according to the Rules of Debit and Credit, an expense A/c is debited .

Further , on  Payment of Carriage  Inwards  in Cash , Cash, whcih is an Asset is reduced , so Cash A/c is credited, because according to the Rules of Debit and Credit, a reduction in an Asset account is credited.

Hence the  Entry would be :

Carriage Inwards A/c Dr. 100
To Cash A/c 100




Basic Journal Entries Example 2

Purchase Journal Entry – Accounts

Meaning of  Purchase

Purchase simply means to get or acquire something,  by paying for it , either at the time when the goods are procured or at a later date. Purchase Journal Entry is the accounting entry made in the books of accounts, to record either of these two situations.

Like we mentioned, purchase this could be : –

  • In cash –  this means that the payment has been made at the time when the goods are acquired
  • In credit – this means that the payment has been made at the time , which is other than the time when   the goods are acquired.

Further, the Purchase could be of an Asset, or trading goods. The purchase journal entries  can therefore be divided in the following four categories : –

  • Purchase of trading goods on cash
  • Purchase of trading goods on credit
  • Purchase  of an Asset for cash
  • Purchase of an asset on credit
Each of these four are discussed as under : –
Purchase Journal Entry – Cash Purchases of goods

Question 2:

What would be the Journal Entry for Purchase of goods amounting to Rs. 10,000 in Cash ?

Explanation:

Since Purchase of goods is an expense, so, Purchases A/c would be debited, because according to the Rules of Debit and Credit, an expense A/c is debited .

Further , on  Payment of Purchases of goods  in Cash , results in reduction of Cash, which is an Asset. When an asset is reduced, the asset account is credited according to the Rules of Debit and Credit. . So Cash A/c would credited,  as a reduction in an Asset account is credited.

Hence the  entry would be : –

Purchases A/c Dr. 10,000
To Cash A/c 10,000




Basic Journal Entries Example 3

Purchase Journal Entry – Credit Purchases of goods

Question 3 :

What would be the Journal Entry for Purchase of goods amounting to Rs. 10,000 from ABC Co. on credit ?

Explanation:

Since Purchase of goods is an expense, so, Purchases A/c would be debited, because according to the Rules of Debit and Credit, an expense A/c is debited .

Further , on   Purchases of goods  in Credit from ABC Co., the company incurs a liability towards ABC Co. or in other words the liability of the company is increased.

When a  liability is  increased, the liability account is credited ,   as according to the Rules of Debit and Credit,   an increase in liability account is credited.

Hence the correct entry is:

Purchase A/c Dr. 10,000

To ABC Co. A/c 10,000

Basic Journal Entries Example 4

Purchase Journal Entry – Asset Purchased in Cash

Question 4:

What would be the Journal Entry for Furniture purchased amounting to Rs. 10,000 in Cash ?

Explanation:

Since Purchase of Furniture results in an increase in the value of furniture, Furniture A/c would be debited, because according to the Rules of Debit and Credit, an increase in an asset   A/c is debited .

Further , on   Purchases of Furniture   in Cash ,  there is a in reduction of Cash, which is an Asset. When an asset is reduced, the asset account is credited according to the Rules of Debit and Credit. . So Cash A/c would credited.

Hence the correct entry is:

Furniture A/c Dr. 10,000
To Cash A/c 10,000




Basic Journal Entries Example 5

Purchase Journal Entry – Credit Purchase of Asset-I

Question 5 :

What would be the Journal Entry for Furniture purchased amounting to Rs. 10,000 from Nived ?

Explanation:

Purchase of Furniture results in an increase in the value of Furniture, which is an asset.Furniture A/c would be debited, because according to the Rules of Debit and Credit, an increase in an asset   A/c is debited .

Further , on   Purchases of Furniture  in Credit from Nived., the company incurs a liability towards Nived. or in other words the liability of the company is increased.

When a  liability is  increased, the liability account is credited ,   as according to the Rules of Debit and Credit,   an increase in liability account is credited. Hence account of Nived would be credited.

Hence the correct entry is:
Furniture A/c Dr. 10,000
To Nived A/c 10,000

Basic Journal Entries Example 6

Sales Journal Entry- Accounts

Meaning of Sales

Sales simply means to transfer something, whether goods or services , by receiving for it , either at the time when the goods are transferred or at a later date. Sales Journal Entry is the accounting entry made in the books of accounts, to record either of these two situations.

Like we mentioned, Sales  could be : –

  • In cash –  this means that the payment has been received from the buyer at the time when the goods are  transferred
  • In credit – this means that the payment has been received from the buyer at the time , which is other than the time when   the goods are  transferred.

Further, the Sales could be of an Asset, or trading goods. The Sales journal entries  can therefore be divided in the following four categories : –

  • Sales of trading goods on cash
  • Sales of trading goods on credit
  • Sales  of an Asset for cash
  • Sales of an asset on credit




Each of these four are discussed as under : –

Sales Journal Entry – Cash Sales of goods

Question 6:

What would be the Journal Entry for Sale of goods amounting to Rs. 10,000 in Cash ?

Explanation:

Since Sale of goods is an income, so, Sales A/c would be credited, because according to the Rules of Debit and Credit, an income A/c is credited .

Further , receipt of money for Sales of goods  in Cash , results in increase of Cash, which is an Asset. When an asset is increased, the asset account is debited according to the Rules of Debit and Credit. So Cash A/c would be debited,  as a increase in an Asset account is debited.

Hence the  entry would be : –

Cash A/c Dr. 10,000
To Sales A/c 10,000

Basic Journal Entries Example 7

Sale Journal Entry – Credit Sales of goods

Question 7:

What would be the Journal Entry for Sale of goods amounting to Rs. 10,000 to ABC Co. on credit ?

Explanation:

Since Sale of goods is an income, so, Sales A/c would be credited, because according to the Rules of Debit and Credit, an income A/c is credited .

Further , on   Sales of goods  on Credit to ABC Co., the company has a receivable  from ABC Co. or in other words the asset of the company is increased. When an  asset is  increased, the asset   account is debited ,   as according to the Rules of Debit and Credit,   an increase in asset account is debited.

Hence the correct entry is:

ABC Co. A/c Dr. 10,000

To Sales A/c 10,000




Basic Journal Entries Example 8

Sale Journal Entry – Asset Sold in Cash

Question 8:

What would be the Journal Entry for Sale of Furniture  amounting to Rs. 10,000 in Cash ?

Explanation:

Since Sale of Furniture results in an decrease in the value of furniture,   Furniture A/c would be credited, because according to the Rules of Debit and Credit, an decrease in an asset   A/c is credited .

Further , on   Sales of Furniture   in Cash ,  there is an in  increase of Cash, which is an Asset. When an asset is increase, the asset account is debited according to the Rules of Debit and Credit. . So Cash A/c would debited.

Hence the correct entry is:

Cash A/c Dr. 10,000
To Furniture A/c 10,000

Basic Journal Entries Example 9

Sale Journal Entry – Credit Sale of Asset

Question 9:

What would be the Journal Entry for Sale of Furniture amounting to Rs. 10,000 to Nived ?

Explanation:

Sale of Furniture results in decrease in the value of Furniture, which is an asset.  Furniture A/c would be credited, because according to the Rules of Debit and Credit, decrease in an asset   A/c is credited .

Further , on   Sale of Furniture  on Credit to Nived., the company incurs a liability towards Nived, or in other words the asset of the company is increased. When an  asset is  increased, the asset   account is debited ,   as according to the Rules of Debit and Credit,   an increase in asset account is debited.

Hence the correct entry is:

Nived A/c Dr. 10,000

To Furniture A/c 10,000

Cash at Bank Journal Entry

Cash at Bank Journal Entry is passed, when a business or person, either deposits cash in the bank or withdraws cash  from the bank, i.e, : –

  •  Withdrawal from Bank
  •  Deposit in the Bank




Cash at Bank Journal Entry  –  Withdrawal from Bank

Question 1 : – 

What would be the Journal Entry for withdrawal of Rs.   10,000 in Cash from Bank  ?

Explanation:

Bank is an Asset, on receipt of cash from Bank,Bank’s A/c would be credited, as there is a decrease inBank Balance, which is an asset . According to the Rules of Debit and Credit, when an asset is decreased, the asset account is  credited .

Further , receipt of money from Bank  in Cash , it results in increase of Cash, which is an Asset. When an asset is increased, the asset account is debited according to the Rules of Debit and Credit. So Cash A/c would be debited.

Hence the  entry would be : –

Cash A/c Dr. 10,000
To Bank A/c 10,000

Cash at Bank Journal Entry  –  Deposit in the Bank

Question 2: – 

What would be the Journal Entry for deposit of Rs.   10,000 in Cash in the Bank  ?

Explanation:

Bank is an Asset. On deposit of cash in the  Bank, the balance of Bank would increase. According to the Rules of Debit and Credit, when an asset is increased, the asset account is  debited . So Bank A/c would be debited.

Further , on deposit of cash in the  Bank, , it results in decrease of Cash, which is an Asset. When an asset is decreased, the asset account is credited according to the Rules of Debit and Credit. So Cash A/c would be credited .

Hence the  entry would be : –

Bank  A/c Dr. 10,000
To Cash A/c 10,000

Cash received Journal Entry –  Debtor

Question 1 : – 

What would be the Journal Entry for receipt of Rs.   10,000 in Cash from a Debtor, Ram  ?

Explanation:

Since Ram is a Debtor, on receipt of cash from Ram, Ram’s A/c would be credited, as there is a decrease in Debtors which is an asset . According to the Rules of Debit and Credit, when an asset is decreased, the asset account is  credited .

Further , receipt of money from Ram  in Cash , results in increase of Cash, which is an Asset. When an asset is increased, the asset account is debited according to the Rules of Debit and Credit. So Cash A/c would be debited.

Hence the  entry would be : –

Cash A/c Dr. 10,000
ToRam’s A/c 10,000




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