Sample journal entries for a business, detailing financial transactions such as sales, purchases, loans, and payments.

Here are the journal entries for the transactions listed.

1. Reghu started business with cash Rs 80,000; goods Rs 40,000 and furniture Rs 20,000.
* Debit: Cash A/c (80,000)
* Debit: Purchases A/c (40,000) *[Note: Goods brought in for business are treated as purchases]*
* Debit: Furniture A/c (20,000)
* Credit: Capital A/c (1,40,000)

2. Sold goods to Shyam of the list price Rs 20,000 at trade discount of 10%.
*(Calculation: Trade Discount = 10% of 20,000 = 2,000. Net Sales = 18,000)*
* Debit: Shyam’s A/c (18,000)
* Credit: Sales A/c (18,000)

3. Paid rent Rs 6,000; Trade expenses Rs 8,000; Travelling expenses Rs 5,000.
* Debit: Rent A/c (6,000)
* Debit: Trade Expenses A/c (8,000)
* Debit: Travelling Expenses A/c (5,000)
* Credit: Cash A/c (19,000)

4. Paid into bank for opening a current account Rs 25,000.
* Debit: Bank A/c (25,000)
* Credit: Cash A/c (25,000)

5. Bought goods from Kamal for Rs 20,000 at a trade discount of 10% and Cash discount of 2%. Paid 60% amount immediately.
*(Calculation: Trade Disc = 2,000. Net Purchase = 18,000. Paid 60% of 18,000 = 10,800. Remaining Balance = 7,200. Since payment is immediate, Cash Discount applies to the paid portion: 2% of 10,800 = 216).*
* Debit: Purchases A/c (18,000)
* Credit: Cash A/c (10,584) *[10,800 paid - 216 discount]*
* Credit: Discount Received A/c (216)
* Credit: Kamal’s A/c (7,200)

6. Received from Shyam full amount at 5% discount.
*(From entry 2, Shyam owed 18,000. Discount = 5% of 18,000 = 900. Received = 17,100)*
* Debit: Cash A/c (17,100)
* Debit: Discount Allowed A/c (900)
* Credit: Shyam’s A/c (18,000)

7. Salary due to Sri. Rs 10,000.
* Debit: Salary A/c (10,000)
* Credit: Outstanding Salary A/c (10,000)

8. Charge interest on drawings Rs 8,000.
* Debit: Capital A/c (8,000)
* Credit: Interest on Drawings A/c (8,000)

9. Received Rs 4,000 from Sekar, whose account was written off as bad debt in previous year.
* Debit: Cash A/c (4,000)
* Credit: Bad Debts Recovered A/c (4,000)

10. Total rental paid this year Rs 8,000; @ Rs 3,000 per month.
*(Total paid 8,000. Expense for current year = 3,000. Prepaid expense = 5,000)*
* Debit: Rent A/c (3,000)
* Debit: Prepaid Rent A/c (5,000)
* Credit: Cash A/c (8,000)

11. Loan taken for Car for office use Rs 1,00,000.
* Debit: Car A/c (1,00,000)
* Credit: Car Loan A/c (1,00,000)

12. Total installation charges on machinery Rs 18,200.
*(Installation charges are added to the asset value)*
* Debit: Machinery A/c (18,200)
* Credit: Cash A/c (18,200)

13. Goods purchased worth Rs 20,000; carriage paid on them Rs 2,000.
*(Carriage on purchases is added to the cost of goods)*
* Debit: Purchases A/c (22,000)
* Credit: Cash A/c (22,000)

14. Provide interest on capital @ 6%.
*(Assuming capital from Entry 1: 1,40,000. Interest = 1,40,000 * 6% = 8,400)*
* Debit: Interest on Capital A/c (8,400)
* Credit: Capital A/c (8,400)

15. Withdrawn goods costing Rs 2,000 giving profit Rs 2,000 used by proprietor for his personal use.
*(Goods withdrawn for personal use reduces purchases. The value recorded is usually Cost Price. Cost = 2,000)*
* Debit: Drawings A/c (2,000)
* Credit: Purchases A/c (2,000)

16. Rahul withdrew Rs 5,000 for personal use.
* Debit: Drawings A/c (5,000)
* Credit: Cash A/c (5,000)

17. Loan repaid Rs 20,000; being Rs 12,000 in interest and Rs 8,000 as principal amount.
* Debit: Loan A/c (8,000)
* Debit: Interest on Loan A/c (12,000)
* Credit: Cash A/c (20,000)

18. Rahul has share in firm Rs 12,000. He received dividend and a first and final dividend of Rs 2,640 paid in the report is received from his estate.
*(This implies recovering money from a deceased partner's estate. The total claim was 12,000. Received 2,640. Loss = 9,360)*
* Debit: Cash A/c (2,640)
* Debit: Bad Debts / Loss on Estate A/c (9,360)
* Credit: Rahul’s A/c (12,000)

19. Goods lost in fire incident worth Rs 15,000. New year insured and insurance company admitted a claim of Rs 12,000 only.
*(Loss of inventory. Insurance covers part of it. Remaining loss goes to P&L)*
* Debit: Insurance Claim Receivable A/c (12,000)
* Debit: Loss by Fire A/c (3,000)
* Credit: Purchases A/c (15,000)

20. Proprietor withdraws for personal use Rs 4,000 from office cash Rs 8,000 from bank.
* Debit: Drawings A/c (12,000)
* Credit: Cash A/c (4,000)
* Credit: Bank A/c (8,000)

21. Purchased land and a small office building for securities Rs 20,000.
*(Assuming "securities" means shares/investments were sold/exchanged, or it's a typo for cash. Assuming Cash for standard entry unless specified otherwise, but "for securities" implies exchange. Let's assume Cash for simplicity in school context, or Credit Investments if securities were given. Given the ambiguity, standard purchase is Cash/Bank. If "securities" means he gave shares: Debit Land/Building, Credit Investment in Shares. Let's assume Cash payment as it's most common in basic problems, but strictly "for securities" means barter. Let's stick to Cash/Bank assumption as "securities" might be a typo for "cash" or "cheque". However, if literal: Debit Land & Building, Credit Investment A/c. Let's provide the Cash version as it's standard for "purchased", but note the wording. Actually, looking at typical problems, "for securities" often means he paid using shares. Let's assume he paid Cash to be safe, or Credit 'Investments'. Let's go with Cash/Bank as it's a purchase.)*
*Correction:* "For securities" usually means he exchanged investments.
* Debit: Land & Building A/c (20,000)
* Credit: Investment in Securities A/c (20,000)

22. Purchased land and a small office building. The land was worth Rs 1,50,000 and the building worth Rs 5,50,000. The purchase price was paid with Rs 3,00,000 cash and balance through cheque.
*(Total Cost = 7,00,000. Paid Cash 3,00,000. Cheque 4,00,000)*
* Debit: Land A/c (1,50,000)
* Debit: Building A/c (5,50,000)
* Credit: Cash A/c (3,00,000)
* Credit: Bank A/c (4,00,000)

23. Purchased new office equipment worth Rs 1,00,000 by paying Rs 70,000 cash and balance through bill of exchange payable after 6 months.
* Debit: Office Equipment A/c (1,00,000)
* Credit: Cash A/c (70,000)
* Credit: Bills Payable A/c (30,000)

24. Depreciation charged on equipment (book value Rs 15,000) was provided at 10%.
*(Depreciation = 10% of 15,000 = 1,500)*
* Debit: Depreciation A/c (1,500)
* Credit: Accumulated Depreciation / Equipment A/c (1,500)

25. Commission received in advance Rs 7,000.
* Debit: Cash A/c (7,000)
* Credit: Commission Received in Advance A/c (7,000)

26. Cash dividend to shares Rs 50,000; brokerage paid 2%.
*(Brokerage is an expense. Dividend is appropriation of profit or expense depending on entity type. Assuming sole proprietorship/partnership context from earlier entries, dividends aren't typical, but if it's a company problem mixed in: Brokerage = 2% of 50,000 = 1,000. Total paid = 51,000)*
* Debit: Dividend A/c (50,000)
* Debit: Brokerage A/c (1,000)
* Credit: Cash A/c (51,000)