Double entry system for beginners, Journal entries, T ledger and trial balance

Welcome in another article here in this article you will learn about “Double entry system, Journal entries, T ledger and trial balance”.

First you have to know what is double entry system in accounting?

Every entry has double effect on account so because of this, it is called double entry system. let’s suppose if you bought some drinks for you then drink is coming to you but the cash will go out because you have to pay the shopkeeper for that drinks, so in double entry system it will pass like this, drinks debit and cash credit.

Here are some transaction entries which will help you to understand the double entry system.

A businessman started his business in march 2021, following are transaction which take place during the month of march.

Double entries

Do it by following double entry system roles.

  1. Started business with cash 5000.
  2. Purchase furniture for 1000 on credit from Jones.
  3. Purchase goods for cash 500.
  4. Return 500 furniture to jones.
  5. Sold goods to Rose for 1000 on credit.
  6. Pay 500 cash to jones.
  7. Received 1000 from Rose.
  8. Invest 5000 cash in business.
  9. Withdrew 1000 cash for personal use.
  10. Sold good for 4000 on cash.


Make the Journal entries, T ledger account and trial balance for above transactions.

Journal entries

  1. Cash debit 5000 and capital credit 5000.
  2. Furniture debit 1000 and A/P (jones) credit 1000.
  3. Purchase debit 500 and cash credit for 500.
  4. A/P debit 500 and Furniture credit for 500.
  5. A/R debit 1000 and sales credit for 1000.
  6. A/P debit 500 and cash credit for 500.
  7. Cash debit 1000 and A/R credit for 1000.
  8. Cash debit for 5000 and capital credit for 5000.
  9. Drawings debit 1000 and cash credit for 1000.
  10. Cash debit 4000 and sales credit for 4000.

T- Ledger accounts.


Double entry system


Double entry system


Double entry system


Double entry system


Double entry system


Double entry system


Double entry system


Double entry system

Trial balance

Double entry system

I hope you find it helpful and if you like this article then must share it with your friends.

Articles for accounting students,

Organization chart by function (basics of management)

Books of prime entry (Basics of Accounting)

Basics of Accounting (fundamental of accounting)

Classification of Cost

Transaction and Business documentation

Must go through this article i hope these will help you to clear your basic view about accounting.

About Author

Naveen Rajput

Leave a Reply

Your email address will not be published. Required fields are marked *