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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.


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

Date Account Debit Credit
Jan 1 Cash 100,000  
          Capital a/c   100,000
Jan 2 Prepaid Rent 36,000  
              Cash   36,000
Jan 3 Equipment 80,000  
              Cash   60,000
              Notes Payable   20,000
Jan 4 Office Supplies 17,600  
           Accounts Payable   17,600
Jan 13 Cash 28,500  
           Service Revenue   28,500
Jan 13 Accounts Payable 17,600  
            Cash   17,600
Jan 14 Wages Expense 19,100  
            Cash   19,100
Jan 18 Cash 32,900  
  Accounts Receivable 21,200  
        Service Revenue   54,100
Jan 23 Cash 15,300  
        Accounts Receivable   15,300
Jan 25 Cash 4,000  
          Unearned Revenue   4,000
Jan 26 Office Supplies 5,200  
            Accounts Payable   5,200
Jan 28 Wages Expense 19,100  
             Cash   19,100
Jan 31 Dividends 5,000  
             Cash   5,000
Jan 31 Electricity Expense 2,470  
          Utilities Payable   2,470
Jan 31 Telephone Expense 1,494  
           Utilities Payable   1,494
Jan 31 Miscellaneous Expense 3,470  
              Cash   3,470


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



About the author

Salman Qureshi

Salman Qureshi is an Accountant by profession & he loves to write on Commerce & Management Sciences Subject to assist Students. Hope you guys will like his effort.

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