Topics
Introduction to Book-Keeping and Accountancy
- Accounting
- Book-Keeping
- Accountancy
- Book-Keeping vs. Accountancy
- Basis (Methods) of Accounting System
- Qualitative Characteristics of Accounting Information
- Basic Terms in Accounting
- Transaction
- Capital and Drawings
- Debtors, Creditors and Bad Debts
- Expenditure and Its Types
- Discount and Its Types
- Solvent Person vs. Insolvent Person
- Accounting Year
- Trading Concerns vs. Not for Profit Concerns
- Concept of Goodwill
- Fundamentals of Business Earnings
- Concepts of Assets, Liabilities and Net Worth
- Accounting Principles
- Accounting Concepts
- Core Accounting Concepts
- Accounting Standards
Meaning and Fundamentals of Double Entry Book-Keeping
Journal
- Accounting Documents
- Goods and Service Tax(GST)
- Types of Accounting Documents
- Voucher
- Tax Invoice (Under GST)
- Credit Memo
- Receipt
- Cheque
- Types of Cheques
- Books of Accounts
- Books of Accounts > Journal
- Journal Entries
- Journal Entries > Goods Account
- Journal Entries > Recording Discount in Journal
- Journal Entries > Other Important Journal Entries
Ledger
Subsidiary Books
- Concept of Subsidiary Books
- Cash Book
- Cash Book > Simple Cash Book (Single Column Cash Book)
- Cash Book > Two Column Cash Book (With Cash and Bank Columns)
- Cash Book > Petty Cash Book
- Simple Petty Cash Book
- Analytical Petty Cash Book
- Purchase Book
- Purchase Return Book
- Sales Book
- Sales Return Book
- Journal Proper
Bank Reconciliation Statement
- Accounting Documents Used in Banking
- Accounting Documents Used in Banking
- Pay-in-Slip
- Withdrawal Slip
- Bank Pass Book
- Bank Statement
- Bank Advice
- Concept of Virtual Banking
- Bank Reconciliation Statement(BRS)
- Cash Book vs Pass Book : Causes of Differences
- Time Difference(Regarding BRS)
- Errors and Omission Made by Bank or Businessman
- Formats of BRS
- Preparation of BRS
- Cash Book and Pass Book Comparison for Common Period
- Cash Book and Pass Book Balances for Different Periods
- Bank Balance as per Cash Book (Favourable / Debit Balance)
- Bank Balance as per Pass Book (Favourable / Credit Balance)
- Overdraft as per Cash Book (Unfavourable / Credit Balance)
- Overdraft as per Pass Book (Unfavourable/Debit balance)
- Reconciliation of Debtors and Creditors
Depreciation
Rectification of Errors
Final Accounts of a Proprietary Concern
Single Entry System
- Concept of Single Entry System
- Single Entry System vs. Double Entry System
- Parts of Single Entry System
- Statements of Affairs
- Statement of Profit or Loss
- Statement of Profit or Loss > Net Worth Method
- Practical Problems on Single Entry System
- Important Journal Entries, with Examples
Maharashtra State Board: Class 11
Important Journal Entries,with Examples
| Sr. No. | Transaction | Particulars | Debit (₹) | Credit (₹) | Narration |
|---|---|---|---|---|---|
| 1 | Started business with cash ₹80,000, furniture ₹20,000, building ₹100,000, and loan ₹20,000 | Cash A/c Dr. Furniture A/c Dr. Building A/c Dr. To Capital A/c To Loan A/c |
80,000 20,000 100,000 |
180,000 20,000 |
Being business started with cash, furniture, building and a loan |
| 2 | Paid rent ₹2,000 | Rent A/c Dr. To Cash A/c |
2,000 |
2,000 |
Being paid for rent |
| 3 | Purchased furniture ₹30,000 + GST 18%, paid cash | Furniture A/c Dr. Input CGST A/c Dr. Input SGST A/c Dr. To Cash A/c |
|
|
Being purchased Furniture @ 18% GST |
| 4 | Received a bearer cheque of ₹25,000 from Z, a customer | Cash A/c Dr. To Z’s A/c |
25,000 |
25,000 |
Being received a bearer cheque from Z |
| 5 | Paid creditor K ₹20,000 by cheque | K's A/c Dr. To Bank A/c |
20,000 |
20,000 |
Being paid to K by cheque |
| 6 | Paid salary ₹5,000 | Salary A/c Dr. To Cash A/c |
5,000 |
5,000 |
Being paid for salary |
| 7 | Sale of laptop (laptop ₹50,000, GST 18%) for cash | Cash A/c Dr. To Laptop A/c To Output CGST A/c To Output SGST A/c |
59,000 |
50,000 4,500 4,500 |
Being sold a laptop at 18% GST |
| 8 | Purchased a machine for ₹30,000 + GST 18%, paid by debit card | Machine A/c Dr. Input CGST A/c Dr. Input SGST A/c Dr. To Bank A/c |
30,000 2,700 2,700 |
35,400 |
Being a machine purchase @ 28% GST and paid by Debit card |
| 9 | Paid insurance expense ₹3,000 | Insurance A/c Dr. To Cash A/c |
3,000 |
3,000 |
Being paid the insurance premium |
| 10 | Purchased horse for ₹40,000, paid carriage ₹2,000 | Livestock A/c Dr. To Cash A/c |
42,000 |
42,000 |
Being purchased horse and paid carriage charges |
| 11 | S, a debtor, was able to pay only 50% of the total amount due from her. The total amount due was ₹20,000 | Cash A/c Dr. Bad Debts A/c Dr. To Debtor A/c |
10,000 10,000 |
20,000 |
Being bad debts incurred |
| 12 | Bad debts recovered ₹1,000 | Cash A/c Dr. To Bad Debts Recovered A/c |
1,000 |
1,000 |
Being bad debts recovered |
| 13 | Investment in shares: ₹50,000 + brokerage ₹1,000, paid by bank | Investment in Shares A/c Dr. To Bank A/c |
51,000 |
51,000 |
Being purchased shares, including brokerage, amount paid by cheque |
| 14 | Staff salary outstanding: ₹5,000 | Salary A/c Dr. To Outstanding Salary A/c |
5,000 |
5,000 |
Being salary outstanding |
| 15 | Paid transport for machine purchase: ₹2,000 | Machine A/c Dr. To Cash A/c |
2,000 |
2,000 |
Being paid transport charges on the purchase of machine |
| 16 | Paid owner’s daughter's college fees (drawings): ₹1,000 | Drawings A/c Dr. To Cash A/c |
1,000 |
1,000 |
Being paid the proprietor's daughter's college fees |
| 17 | Sold goods to R ₹60,000 at 10% trade discount and 18% GST; 1/3 was received in cash, and a 5% cash discount | Cash A/c Dr. Discount Allowed A/c Dr. R A/c Dr. To Sales A/c To Output CGST A/c To Output SGST A/c |
20,178 1,062 42,480 |
|
Being goods sold to R at 10% trade discount and @ 18% GST, and 1/3 of the amount received by cash, and allowed 5% cash discount |
| 18 | Deposited Cash of ₹20,000 into Central Bank of India | Central Bank of India A/c Dr. To Cash A/c |
20,000 |
|
Being cash deposited into Central Bank of India |
Transaction 17 (Explanatory Note):
Invoice price = ₹60,000
Trade discount = 60,000 x 10%
= 6,000
Value after trade discount = 60,000 - 6,000
= 54,000
Total GST = 18% on 54,000
= 9,720
Out of 9,720, 4,860 is CGST and 4,860 is SGST.
Total value after GST = 54,000 + 9,720
= 63,720
As only 1/3 of the amount was received, the cash discount will be calculated on that amount ONLY.
63,720 x 1/3 = 21,240
Cash Discount = 21,240 x 5%
= 1,062
Final amount received = 21,240 - 1,062
= ₹20,178
Points to Remember:
- A bearer cheque received = cash received, because it can be immediately encashed by whoever presents it at the bank, just like cash
- If the bank name is mentioned in the transaction, the concerned bank's account will be debited or credited
- Placing an order with a supplier will not be recorded, as it is just an event, NOT a transaction
