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
Rules of Dr./Cr.