Dear Teachers,
These slides have been prepared based on the NCERT syllabus to support you in teaching Plus One and Plus Two Accountancy and Computerised Accounting.
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Mujeeb Rahiman C
HSST Commerce
GHSS Pattikkad
Malappuram Dt.
✉️ mujeebchemmala@gmail.com
9995983075 �
Chapter - 3
Recording of Transactions - I
JOURNAL / Book of Original Entry
Journal
Journal
Book of original entry
Book of prime entry
Chronological order
The book in which the transaction is recorded for the first time is called journal or book of original entry. The source document, as discussed earlier, is required to record the transaction in the journal.
Journalising
Journalising
Process of
recording
transactions
in journal
Journal entry
Transactions entered in the journal
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Format of Journal
Date
Particulars
L.F
Debit
Amount
Rs.
Credit
Amount
Rs.
L.F – Ledger Folio (Page number of Ledger)
dd/mm/yy
Debit Account
XXXX
XXXX
To Credit Account
Dr.
(Narration : brief description of the transaction)
Journal
Journal
Date
Particulars
LF
Debit Amt
Credit Amt
Commenced business with Cash Rs. 2,00,000/-
Commenced business with Cash Rs. 2,00,000/-
Debit Account ?
Credit Account ?
Cash Account
Capital Account
Journal
Date
Particulars
LF
Debit Amt
Credit Amt
01/04/2018
Cash Account
2,00,000
2,00,000
To Capital Account
Dr.
(Commenced business with cash
Journal
Date
Particulars
LF
Debit Amt
Credit Amt
Cash Account
2,00,000
2,00,000
To Capital Account
Dr.
(Commenced business with cash)
01/04/2018
Deposited Cash in to bank Rs. 1,00,000/-
Deposited Cash in to bank Rs. 1,00,000/-
Debit Account ?
Credit Account ?
Bank Account
Cash Account
Journal
Date
Particulars
LF
Debit Amt
Credit Amt
01/04/2018
Bank Account
1,00,000
1,00,000
To Cash Account
Dr.
(Deposited cash in to bank)
Journal
Date
Particulars
LF
Debit Amt
Credit Amt
Cash Account
2,00,000
2,00,000
To Capital Account
Dr.
(Commenced business with cash)
Bank Account
1,00,000
1,00,000
To Cash Account
Dr.
(Deposited cash in a bank account)
01/04/2018
01/04/2018
Purchased Machinery for Rs. 70,000/-
Purchased Machinery for Rs. 70,000/-
Debit Account ?
Credit Account ?
Machinery Account
Cash Account
Journal
Date
Particulars
LF
Debit Amt
Credit Amt
02/04/2018
Machinery Account
70,000
70,000
To Cash Account
Dr.
(Bought Machinery)
Journal
Date
Particulars
LF
Debit Amt
Credit Amt
Cash Account
2,00,000
2,00,000
To Capital Account
Dr.
(Commenced business with cash)
Bank Account
1,00,000
1,00,000
To Cash Account
Dr.
(Deposited cash in a bank account)
3,70,000
3,70,000
Total c/f
01/04/2018
01/04/2018
02/04/2018
Machinery Account
70,000
70,000
To Cash Account
Dr.
(Bought Machinery)
Purchased Furniture on Credit from Royal Furniture for Rs. 50,000/-
Purchased Furniture on Credit from Royal Furniture for Rs. 50,000/-
Debit Account ?
Credit Account ?
Furniture Account
Royal Furniture Account
Journal
Date
Particulars
LF
Debit Amt
Credit Amt
02/04/2018
Furniture Account
50,000
50,000
To Royal Furniture Account
Dr.
(Bought furniture on credit)
3,70,000
3,70,000
Total b/f
02/04/2018
Furniture Account
50,000
50,000
To Royal Furniture Account
Dr.
(Bought furniture on credit)
Purchased goods from Mohan for Rs. 60,000/-
Purchases Account
Sales Account
Purchases Returns Account
Sales Returns Account
Stock Account
Purchased goods from Mohan for Rs. 60,000/-
Debit Account ?
Credit Account ?
Purchases Account
Mohan Account
Journal
Date
Particulars
LF
Debit Amt
Credit Amt
03/04/2018
Purchases Account
60,000
60,000
To Mohan Account
Dr.
(Bought goods from Mohan)
3,70,000
3,70,000
Total b/f
02/04/2018
Furniture Account
50,000
50,000
To Royal Furniture Account
Dr.
(Bought furniture on credit)
03/04/2018
Purchases Account
60,000
60,000
To Mohan Account
Dr.
(Bought goods from Mohan)
Wages paid Rs. 2,000/-
Wages paid Rs. 2,000/-
Debit Account ?
Credit Account ?
Wages Account
Cash Account
Journal
Date
Particulars
LF
Debit Amt
Credit Amt
03/04/2018
Wages Account
2,000
2,000
To Cash Account
Dr.
(Paid wages)
3,70,000
3,70,000
Total b/f
02/04/2018
Furniture Account
50,000
50,000
To Royal Furniture Account
Dr.
(Bought furniture on credit)
03/04/2018
Purchases Account
60,000
60,000
To Mohan Account
Dr.
(Bought goods from Mohan)
03/04/2018
Wages Account
2,000
2,000
To Cash Account
Dr.
(Paid wages)
Sold goods for Rs. 25,000/-
Sold goods for Rs. 25,000/-
Debit Account ?
Credit Account ?
Cash Account
Sales Account
Journal
Date
Particulars
LF
Debit Amt
Credit Amt
04/04/2018
Cash Account
25,000
25,000
To Sales Account
Dr.
(Cash Sales)
3,70,000
3,70,000
Total b/f
5,07,000
5,07,000
Total c/f
02/04/2018
Furniture Account
50,000
50,000
To Royal Furniture Account
Dr.
(Bought furniture on credit)
03/04/2018
Purchases Account
60,000
60,000
To Mohan Account
Dr.
(Bought goods from Mohan)
03/04/2018
Wages Account
2,000
2,000
To Cash Account
Dr.
(Paid wages)
04/04/2018
Cash Account
25,000
25,000
To Sales Account
Dr.
(Cash Sales)
Returned goods to Mohan Rs. 10,000/-
Returned goods to Mohan Rs. 10,000/-
Debit Account ?
Credit Account ?
Mohan Account
Purchases Returns Account
Journal
Date
Particulars
LF
Debit Amt
Credit Amt
05/04/2018
Mohan Account
10,000
10,000
To Purchases Returns Account
Dr.
(Returned goods to Mohan)
5,07,000
5,07,000
Total b/f
05/04/2018
Mohan Account
10,000
10,000
To Purchases Returns Account
Dr.
(Returned goods to Mohan)
Withdrew cash from bank Rs.4,000/-
Withdrew cash from bank Rs.4,000/-
Debit Account ?
Credit Account ?
Cash Account
Bank Account
Journal
Date
Particulars
LF
Debit Amt
Credit Amt
06/04/2018
Cash Account
4,000
4,000
To Bank Account
Dr.
(Withdrew cash from bank)
5,07,000
5,07,000
Total b/f
05/04/2018
Mohan Account
10,000
10,000
To Purchases Returns Account
Dr.
(Returned goods to Mohan)
06/04/2018
Cash Account
4,000
4,000
To Bank Account
Dr.
(Withdrew cash from bank)
Goods returned by Shameer, a customer Rs.1,000/-
Goods returned by Shameer, a customer Rs.1,000/-
Debit Account ?
Credit Account ?
Sales Returns Account
Shameer Account
Journal
Date
Particulars
LF
Debit Amt
Credit Amt
07/04/2018
Sales Returns Account
1,000
1,000
To Shameer Account
Dr.
(Goods returned by Shameer)
5,07,000
5,07,000
Total b/f
05/04/2018
Mohan Account
10,000
10,000
To Purchases Returns Account
Dr.
(Returned goods to Mohan)
06/04/2018
Cash Account
4,000
4,000
To Bank Account
Dr.
(Withdrew cash from bank)
07/04/2018
Sales Returns Account
1,000
1,000
To Shameer Account
Dr.
(Goods returned by Shameer)
Salary paid by Cheque Rs.15,000/-
Salary paid by Cheque Rs.15,000/-
Debit Account ?
Credit Account ?
Salary Account
Bank Account
Journal
Date
Particulars
LF
Debit Amt
Credit Amt
30/04/2018
Salary Account
15,000
15,000
To Bank Account
Dr.
(Salary paid by Cheque)
5,07,000
5,07,000
Total b/f
5,37,000
5,37,000
Total c/f
05/04/2018
Mohan Account
10,000
10,000
To Purchases Returns Account
Dr.
(Returned goods to Mohan)
06/04/2018
Cash Account
4,000
4,000
To Bank Account
Dr.
(Withdrew cash from bank)
07/04/2018
Sales Returns Account
1,000
1,000
To Shameer Account
Dr.
(Goods returned by Shameer)
30/04/2018
Salary Account
15,000
15,000
To Bank Account
Dr.
(Salary paid by Cheque)
Depreciation of Machinery Rs.5,000/-
Depreciation of Machinery Rs.5,000/-
Debit Account ?
Credit Account ?
Depreciation Account
Machinery Account
Journal
Date
Particulars
LF
Debit Amt
Credit Amt
30/04/2018
Depreciation Account
5,000
5,000
To Machinery Account
Dr.
(Depreciation of Machinery)
5,37,000
5,37,000
Total b/f
5,42,000
5,42,000
Total
30/04/2018
Depreciation Account
5,000
5,000
To Machinery Account
Dr.
(Depreciation of Machinery)
MUJEEB RAHIMAN C
HSST COMMERCE
GHSS PATTIKKAD
MALAPPURAM DT
A journal entry with one debit account and one credit account is called simple journal entry.
For example, Commenced business with cash Rs. 1,00,000
Increases Asset (Cash) by Rs. 1,00,000
Increases Capital by Rs. 1,00,000
Simple Journal Entries
Cash Account Dr. 1,00,000
To Capital Account 1,00,000
When the number of accounts to be debited or credited is more than one, entry made for recording the transaction is called compound journal entry.
For example, Purchased furniture from Modern Furniture for Rs. 25,000 and Rs. 5,000 is paid by cash immediately and balance of Rs. 20,000 is still payable.
Increases Asset (Furniture) by Rs. 25,000,
Decreases Asset (Cash) by Rs. 5,000 and
Increases Liability (Modern Furniture) by Rs. 20,000
Compound Journal Entries
Increases Asset (Furniture) by Rs. 25,000,
Decreases Asset (Cash) by Rs. 5,000 and
Increases Liability (Modern Furniture) by Rs. 20,000
Compound Journal Entries
Furniture Account Dr. 25,000
To Cash Account 5,000
To Modern Furniture A/c 20,000
Paid salary Rs. 10,000 and Wages Rs. 5,000
Increases Expenses (Salary) by Rs. 10,000,
Increases Expenses (Wages) by Rs. 5,000 and
Decreases Asset (Cash) by Rs. 15,000
Compound Journal Entries
Salary Account Dr. 10,000
Wages Account Dr. 5,000
To Cash Account 15,000
Trade Discount
Plastico Ltd.
MG Road, Calicut
Invoice
1001
10/05/2020
Customer : Sunil
Sunil Account Dr. 15,300
To Sales Account 15,300
(Seller)
(Buyer)
Trade Discount
●
Price concession on bulk purchase
●
Also called quantity discount
●
Deducted from the actual price
●
The net amount is shown on the invoice
●
Will not reflect in books of accounts
Cash Discount
Plastico Ltd.
MG Road, Calicut
Invoice
1001
10/05/2020
Customer : Sunil
Cash Account Dr. 14,994
Discount Account Dr. 306
To Sunil Account 15,300
15300 x 2%
= 306
15300-306
= 14994
(Seller)
(Buyer)
Cash Discount
●
Granted by the creditor to the debtor
●
Inducement for prompt payment
●
Loss/expense to the creditor
●
Gain to the debtor
●
Shown in the books of accounts
MUJEEB RAHIMAN C
HSST COMMERCE
GHSS PATTIKKAD
MALAPPURAM DT
Journal Entries
illustration
Record the following transactions in Journal.
(i) Commenced business with a capital of Rs. 6,00,000.
(ii) Rs. 4,50,000 deposited in a bank account.
(iii) Furniture for Rs. 2,30,000 purchased from Modern Furniture Mart
by paying Rs. 30,000 cash immediately.
(iv) Purchased goods worth Rs. 40,000 for cash and Rs. 45,000 on credit
from ABC Ltd.
(v) Paid a cheque of Rs. 2, 00,000 to Modern Furniture Mart
(vi) Sold goods to Mr. Sunil Rs. 70,000
(vii) Withdrawn by the proprietor Rs. 35,000 cash for personal use.
(viii) Returned goods to ABC Ltd. Rs. 2,000
(ix) Returned goods by Mr. Sunil Rs. 500
(x) Received Rs. 68,500 from Mr. Sunil in full settlement of his account.
Journal
Date
Particulars
LF
Debit Amt
Credit Amt
(i)
Cash Account
6,00,000
6,00,000
To Capital Account
Dr.
(Commenced business with cash)
(i) Commenced business with a capital of Rs. 6,00,000.
(ii) Rs. 4,50,000 deposited in a bank account.
(ii)
Bank Account
4,50,000
4,50,000
To Cash Account
Dr.
(Deposited cash in a bank account)
10,50,000
10,50,000
Total c/f
Carried forward
(iii) Furniture for Rs. 2,30,000 purchased from Modern Furniture Mart
by paying Rs. 30,000 cash immediately.
(iv) Purchased goods worth Rs. 40,000 for cash and Rs. 45,000 on credit
from ABC Ltd.
(iii)
Furniture Account
2,30,000
30,000
To Cash Account
Dr.
(Purchase of furniture by paying Rs. 30,000 cash and balance on a later date)
(iv)
Purchase Account
85,000
40,000
To Cash Account
Dr.
(Bought goods on cash and credit)
10,50,000
10,50,000
Total b/f
(brought forwar
2,00,000
To Modern Furniture Mart A/c
45,000
To ABC Ltd. A/c
(iv) Purchased goods worth Rs. 40,000 for cash and Rs. 45,000 on credit
from ABC Ltd..
(iii)
Furniture Account
2,30,000
30,000
To Cash Account
Dr.
(Purchase of plant and machinery by paying Rs. 30,000 cash and balance on a later date)
(iv)
Purchase Account
85,000
40,000
To Cash Account
Dr.
(Bought goods on cash and credit)
10,50,000
10,50,000
Total b/f
2,00,000
To Modern Furniture Mart A/c
45,000
To ABC Ltd. A/c
13,65,000
13,65,000
Total c/f
(v) Paid a cheque of Rs. 2, 00,000 to Modern Furniture Mart
(vi) Sold goods to Mr. Sunil Rs. 70,000
(vii) Withdrawn by the proprietor Rs. 35,000 cash for personal use.
(v)
Modern Furniture Mart A/c
2,00,000
2,00,000
To Bank Account
Dr.
(Payment made to the supplier of furniture)
(vi)
Sunil Account
70,000
70,000
To Sales Account
Dr.
(Sold goods on credit)
13,65,000
13,65,000
Total b/f
16,70,000
16,70,000
Total c/f
(vii)
Drawings Account
35,000
35,000
To Cash Account
Dr.
(Withdrew cash for personal use)
(viii) Returned goods to ABC Ltd. Rs. 2,000
(ix) Returned goods by Mr. Sunil Rs. 500
(x) Received Rs. 68,500 from Mr. Sunil in full settlement of his account.
(viii)
ABC Ltd. A/c
2,000
2,000
To Purchase Returns A/c
Dr.
(Goods returned to ABC Ltd.)
(ix)
Sales Returns A/c
500
500
To Sunil Account
Dr.
(Goods returned by Sunil)
16,70,000
16,70,000
Total b/f
17,42,000
17,42,000
Total
(x)
Cash Account
68,500
69,500
To Sunil Account
Dr.
(Cash received from sunil in full settlement
Discount Account
1,000
Dr.
MUJEEB RAHIMAN C
HSST COMMERCE
GHSS PATTIKKAD
MALAPPURAM DT