Accounting Journal Entries Examples


Accounting Journal Entries Examples

The first step in accounting is to record the entries in journal book.

          Before going to explain how these Journal Entries are passed you must read Debit and Credit Rules.

         The following practical example helps you to understand that how we pass journal entries in journal book or daily book or day to day book.

The following Accounting Journal Entries Examples that show  how to record journal entries:

Accounting Journal Entries Examples:

              A Company “Haseeb & Co” was incorporated on January 1, 2014 with an initial capital of 5,000 shares of common stock having Rs.20 par value. During the first month of its operations, the company engaged in following transactions.


Jan 2An amount of Rs.36,000 was paid as advance rent for three months.
Jan 3Paid Rs.60,000 cash on the purchase of equipment costing Rs.80,000.The remaining amount was recognized as a one year note payable with interest rate of 9%.
Jan 4Purchased office supplies costing Rs.17,600 on account.
Jan 13Provided services to its customers and received Rs.28,500 in cash.
Jan 13Paid the accounts payable on the office supplies purchased on January 4.
Jan 14Paid wages to its employees for first two weeks of January, aggregating Rs.19,100.
Jan 18Provided Rs.54,100 worth of services to its customers.They paid Rs.32,900 and promised to pay the remaining amount.
Jan 23Received Rs.15,300 from customers for the services provided on January 18.
Jan 25Received Rs.4,000 as an advance payment from customers.
Jan 26Purchased office supplies costing Rs.5,200 on account.
Jan 28Paid wages to its employees for the third and fourth week of January: Rs.19,100.
Jan 31Paid Rs.5,000 as dividends.
Jan 31Received electricity bill of Rs.2,470.
Jan 31Received telephone bill of Rs.1,494.
Jan 31Miscellaneous expenses paid during the month totaled Rs.3,470


The following table shows the journal entries for the above events.

                   General  Journal

                        Haseeb & Co

                Dated: January,2014

Jan 1Cash100,000 
         Capital a/c 100,000
Jan 2Prepaid Rent36,000 
             Cash 36,000
Jan 3Equipment80,000 
             Cash 60,000
             Notes Payable 20,000
Jan 4Office Supplies17,600 
          Accounts Payable 17,600
Jan 13Cash28,500 
          Service Revenue 28,500
Jan 13Accounts Payable17,600 
           Cash 17,600
Jan 14Wages Expense19,100 
           Cash 19,100
Jan 18Cash32,900 
 Accounts Receivable21,200 
       Service Revenue 54,100
Jan 23Cash15,300 
       Accounts Receivable 15,300
Jan 25Cash4,000 
         Unearned Revenue 4,000
Jan 26Office Supplies5,200 
           Accounts Payable 5,200
Jan 28Wages Expense19,100 
            Cash 19,100
Jan 31Dividends5,000 
            Cash 5,000
Jan 31Electricity Expense2,470 
         Utilities Payable 2,470
Jan 31Telephone Expense1,494 
          Utilities Payable 1,494
Jan 31Miscellaneous Expense3,470 
             Cash 3,470


After Passing the journal entries in general journal book the next step is to prepare ledger accounts.