Bookkeeping is the foundation of effective financial management for any business, ensuring accurate and up-to-date financial records. One of the critical components of bookkeeping is maintaining proper journal entries. Journal entries are detailed records of financial transactions in chronological order of occurrence. Each entry includes the date, accounts affected, amounts debited and credited, and a brief description of the transaction.
In this article, we provide a comprehensive list of essential bookkeeping journal entries that every business should be familiar with. These entries cover common financial transactions such as capital introduction, purchase and sale of goods, rent payments, salary disbursements, and loan transactions, etc. Each entry is presented in a clear and structured format, making it easy to understand and apply in real-life business scenarios.
| Date | Particulars | Debit (₹) | Credit (₹) |
|---|---|---|---|
| Capital Introduction | |||
| 2024-06-07 | Cash/Bank A/c | 75,000 | |
| To Capital A/c | 75,000 | ||
| (Being capital introduced into the business) | |||
| Purchase of Goods | |||
| 2024-06-10 | Purchases A/c | 45,000 | |
| To Cash/Bank A/c | 45,000 | ||
| (Being goods purchased for cash) | |||
| Sale of Goods | |||
| 2024-06-15 | Cash/Bank A/c | 30,000 | |
| To Sales A/c | 30,000 | ||
| (Being goods sold for cash) | |||
| Rent Payment | |||
| 2024-06-20 | Rent Expense A/c | 12,000 | |
| To Cash/Bank A/c | 12,000 | ||
| (Being rent paid in cash) | |||
| Purchase of Equipment | |||
| 2024-06-25 | Equipment A/c | 60,000 | |
| To Cash/Bank A/c | 60,000 | ||
| (Being equipment purchased for cash) | |||
| Commission Received | |||
| 2024-07-01 | Cash/Bank A/c | 20,000 | |
| To Commission Income A/c | 20,000 | ||
| (Being commission received in cash) | |||
| Salaries Payment | |||
| 2024-07-05 | Salaries Expense A/c | 25,000 | |
| To Cash A/c | 25,000 | ||
| (Being salaries paid in cash) | |||
| Owner's Drawings | |||
| 2024-07-10 | Drawings A/c | 7,000 | |
| To Cash A/c | 7,000 | ||
| (Being money withdrawn by the owner | |||
| for personal use) | |||
| Loan Repaid | |||
| 2024-07-20 | Loan A/c | 55,000 | |
| To Cash/Bank A/c | 55,000 | ||
| (Being loan repaid to the bank) | |||
| Advertising Expense | |||
| 2024-07-25 | Advertising Expense A/c | 15,000 | |
| To Cash/Bank A/c | 15,000 | ||
| (Being advertising expenses paid) | |||
| Interest Income | |||
| 2024-07-30 | Cash/Bank A/c | 18,000 | |
| To Interest Income A/c | 18,000 | ||
| (Being interest income received) | |||
| Cash Received from Debtors | |||
| 2024-08-01 | Cash/Bank A/c | 22,000 | |
| To Accounts Receivable A/c | 22,000 | ||
| (Being cash received from debtors) | |||
| Electricity Bill Payment | |||
| 2024-08-05 | Electricity Expense A/c | 8,000 | |
| To Cash/Bank A/c | 8,000 | ||
| (Being electricity bill paid) | |||
| Goods Purchased on Credit | |||
| 2024-08-10 | Purchase A/c | 35,000 | |
| To Accounts Payable A/c | 35,000 | ||
| (Being goods purchased on credit) | |||
| Payment Made to Creditors | |||
| 2024-08-15 | Accounts Payable A/c | 20,000 | |
| To Cash/Bank A/c | 20,000 | ||
| (Being payment made to creditors) |
