By Y P Singh
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Extra resources for Accounting and Financial Management for I. T. Professionals
It. Expenses A/c N Expense on travelling, so Dr. entry. Sales A/c N Income due to Sales, so Cr. it. Rule 4 Some important transactions along with journal (primary) entries, are given below: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. Invoice received from Shyam Rs. 5000. Goods returned to Shyam or Shyam admitted claim for Rs. 900. Invoice sent to Shyam ——Rs. 2000. Goods returned by Shyam or Shyam’s claim admitted Rs. 200. Outstanding salary or salary owing Rs.
11,000 To M/s Chowdhry and Co. 11,000 (being purchase of goods from M/s Chowdhry and Co. on credit) March 10 Telephone Rent A/c …Dr. 500 To Bank A/c 500 (being telephone expenses paid by cheque) March 11 Typewriter A/c …Dr. 2,100 To Universal Typewriter Co. A/c 2,100 (being purchase of typewriter on credit) March 15 Ram A/c …Dr. To Sales A/c 12,000 12,000 (being goods sold to Ram on credit) Contd... T. F. …Dr. ) 2,000 To Sales A/c 2,000 (being sale of goods for cash) March 19 Drawing A/c …Dr. 1,500 To Bank A/c 1,500 (being withdrawal of cash for personal use by the owner) March 21 Cash A/c …Dr.
T. Professionals Rule 1 Cash transaction Rule 1 Cash transaction Rule 2 Rule 3 Rule 4 A/Cs Involved Nature Apply ground Rule for entry in books of account Salary A/c R Expenditure on salary, so Dr. entry. Cash A/c R Cash goes out, so Cr. it. Rule 2 Rule 3 A/Cs Involved Nature Apply ground Rule for entry in books of account Cash A/c Travelling R Cash comes in, so Dr. it. Expenses A/c N Expense on travelling, so Dr. entry. Sales A/c N Income due to Sales, so Cr. it. Rule 4 Some important transactions along with journal (primary) entries, are given below: 1.