Skip to main content

Posts

Journal Enteries of Income

In the books there are two types of income which are to be booked : 1. Direct Income - Any income which is generated directly from the main course of business is known as direct income . 2. Indirect Income - Any income which is generated accidentally or from other than regular business course of action is known as indirect income. Entries for booking of income would be same for both direct and indirect income : At the time of raising of invoice  on the Debtor. Debtor or Party A/c Dr.   xxx      To Income A/c                    xxx  (Being income is booked against  the invoice no: ******** issued) When payment is received Bank / Cash A/c   Dr.            xxx      To Debtor or Party A/c            xxx  ...
Post a Comment
Read more
Recent posts

List of general expenses with their journal entries.

Here is the list of following general expenses with their booking in the books of account : 1. Rent Expense                      Rent A/c  Dr.                      xxx                To Rent Payable A/c or Vendor A/c      xxx           (Being rent expense for the month of ___                booked against the invoice no *****)                        Rent Payable A/c or Vendor A/c    Dr.         xxx                      ...
Post a Comment
Read more

Journal entry of Expenses

All the services received which are necessary for the business to run are known as expenses.  Journal Entry of expenses Whether  receive of service or invoice, whichever is earlier DD/MM/YYYY                        Expense A/c  Dr.                                 xxx (Date of Invoice)                              To Vendor / Party A/c                                   xxx                                                                                     ...
Post a Comment
Read more

Journal entries of sale of goods/stock

When the stock or any asset is purchased for reselling then it is treated as goods for that particular business. For eg. Ram bought car for reselling as he is a car seller then car purchased by him will be termed as goods/ stock in the books of Ram's business not as an asset. Journal entry for selling of goods / Stocks: When goods are sold DD/MM/YYYY                           Debtor A/c   Dr.                                       xxx (Date of Invoice)                                  ...
Post a Comment
Read more

Journal entry of purchases

1.For purchase of business stock i.e. goods used for the purpose of selling further to customer for home consumption journal entry will be When goods are purchased   DD/MM/YYYY                   Purchase A/c   Dr.                                                 xxx (Date of invoice)                           To Vendor A/c or Creditor A/c                              xxx                                   ...
Post a Comment
Read more

What is a Journal Entry ?

A journal entry, in accounting, is a logging of transaction  into accounting journal items.  The journal entry can consist of several recordings, each of which is either a debit or a credit.  The total of the debits must equal the total of the credits or the journal entry is said to be "unbalanced". For example, when the company spends cash to purchase a new vehicle, the cash account is decreased or credited and the vehicle account is increased or debited .                             Vehicle A/C   Dr.    xxx                                       To Cash A/C            xxx
Post a Comment
Read more