Basic Accounting Entries

 Basic accounting entries are fundamental to the bookkeeping process and involve recording financial transactions in the general ledger. Here are some common types of basic accounting entries:

1. Sales on Credit:

   • Debit Accounts Receivable
   • Credit Sales

   Example:

   Date         Particulars                        Debit (₹)     Credit (₹)
   ------------------------------------------------------------------------
   2024-06-06   Accounts Receivable A/c            50,000
                To Sales A/c                                       50,000
                (Being goods sold on credit)
   

2. Cash Sales:

   • Debit Cash
   • Credit Sales

   Example:

   Date         Particulars                        Debit (₹)     Credit (₹)
   ------------------------------------------------------------------------
   2024-06-06   Cash A/c                           50,000
                To Sales A/c                                       50,000
                (Being goods sold for cash)
   

3. Purchases on Credit:

   • Debit Purchases or Inventory
   • Credit Accounts Payable

   Example:

   Date         Particulars                        Debit (₹)     Credit (₹)
   ------------------------------------------------------------------------
   2024-06-06   Purchases A/c                      30,000
                To Accounts Payable A/c                           30,000
                (Being goods purchased on credit)
   

4. Cash Purchases With Cash:

   • Debit Purchases or Inventory
   • Credit Cash

   Example:

   Date         Particulars                        Debit (₹)     Credit (₹)
   ------------------------------------------------------------------------
   2024-06-06   Purchases A/c                      30,000
                To Cash A/c                                        30,000
                (Being goods purchased for cash)
   

5. Payment to Creditors:

   • Debit Accounts Payable
   • Credit Cash or Bank

   Example:

   Date         Particulars                        Debit (₹)     Credit (₹)
   ------------------------------------------------------------------------
   2024-06-15   Accounts Payable A/c               30,000
                To Cash A/c                                        30,000
                (Being payment made to supplier)
   

6. Receipt from Debtors:

   • Debit Cash or Bank
   • Credit Accounts Receivable

   Example:

   Date         Particulars                        Debit (₹)     Credit (₹)
   ------------------------------------------------------------------------
   2024-06-15   Cash A/c                           50,000
                To Accounts Receivable A/c                        50,000
                (Being payment received from customer)
   

7. Expense Incurred With Cash:

   • Debit Expense Account
   • Credit Cash or Bank

   Example:

   Date         Particulars                        Debit (₹)     Credit (₹)
   ------------------------------------------------------------------------
   2024-06-06   Rent Expense A/c                    5,000
                To Cash A/c                                         5,000
                (Being rent paid for the month)
   

8. Income Earned:

   • Debit Cash or Bank
   • Credit Income Account

   Example:

   Date         Particulars                        Debit (₹)     Credit (₹)
   ------------------------------------------------------------------------
   2024-06-06   Bank A/c                            8,000
                To Interest Income A/c                              8,000
                (Being interest income received)
   

These entries form the basis of accounting records and help ensure accurate financial reporting.