Application of Rules of Debit and Credit – 35 Cases

Application of Rules of Debit and Credit - 35 Cases for Journal Entries

(Some simple transactions).

No.	Transaction	Debit A/c	Credit A/c
1.	Started business with cash.	Cash A/c	Capital A/c
2.	Started business with cash, bank balance.	Cash A/c, Bank A/c	Capital A/c
3.	Borrowed loan from State Bank of India.	Bank A/c	SBI’s loan A/c
4.	Borrowed loan from a friend.	Bank A/c	Friend’s loan A/c
5.	Purchased machinery for cash.	Machinery A/c	Cash A/c
6.	Purchased machinery for cash, payment made by cheque.	Machinery A/c	Bank A/c
7.	Purchased furniture, payment made by accepting a bill of   exchange	Furniture A/c	Bills Payable A/c
8.	Purchased goods, 50% payment made by cheque.	Purchases A/c	Bank A/c, Creditors A/c
9.	Goods purchased on credit, now returned.	Creditors A/c	Purchases Return A/c
10.	Sold goods for cash.	Cash A/c	Sales A/c
11.	Sold goods on credit.	Debtors A/c	Sales A/c
12.	Sold goods, 50% payment received in cash.	Cash A/c, Debtors A/c	Sales A/c
13.	Payment of an installment of State bank of India’s loan.	SBI’s loan A/c	Bank A/c
14.	Bills Receivable received from a debtor.	Bills Receivable A/c	Debtors A/c
15.	Deposited into Canara bank.	Canara Bank A/c	Cash A/c
16.	Withdrew from bank for office use.	Cash A/c	Bank A/c
17.	Withdrew from bank for domestic use.	Drawings A/c	Bank A/c
18.	Payment of wages, rent by cheque.	Wages A/c, Rent A/c	Bank A/c
19.	Returned to friend, loan borrowed from him, by cheque.	Friend’s loan A/c	Bank A/c
20.	Bad Debts.	Bad Debts A/c	Debtors A/c
21.	Cash received from Mahesh for commission.	Cash A/c	Commission A/c
22.	Received rent.	Cash A/c	Commission A/c
23.	Goods returned by our customers.	Sales Return A/c	Debtors A/c
24.	Collection of cash from debtors after discount.	Cash A/c, Discount Allowed A/c	Debtors A/c
25.	Payment to creditors after discount.	Creditors A/c	Cash A/c, Discount received A/c
26.	Depreciation on asset.	Depreciation A/c	Asset A/c
27.	Appreciation to asset.	Asset A/c	Appreciation A/c
28.	Interest on Loan.	Interest on Loan A/c	Loan A/c
29.	Interest on bank deposit.	Bank A/c	Interest A/c
30.	Outstanding expenses.	Expenses A/c	Outstanding expenses A/c
31.	Expenses paid in advance (when these are paid).	Prepaid expenses A/c	Cash A/c
32.	Accrued Income.	Accrued Income A/c	Income A/c
33.	Income received in advance. (when it is received).	Cash A/c	Income received in advance A/c
34.	Withdrew goods for personal use.	Drawings A/c	Purchases A/c
35.	Goods given as charity.	Charity A/c	Purchases A/c

Application of Rules of Debit and Credit - 35 Cases

Interactive Activity: Application of Rules of Double Entry

Journal