Double entry-journal entries, Ledger and trial balance with examples

Here is another article for you, in this article you will practically know and practice about double entry. It is the basic starting in accounting journey. Hope you will find it helpful for you and get some new ideas.

In this article you will be able to know double entry journal entries, Ledger and trial balance.

So let’s start with 1st problem,

Double entry problem 1

  1. Naveen started business with cash 10000.
  2. Purchase furniture for office use 1000.
  3. purchase goods for 5000.
  4. Sold goods for 1000.
  5. Pay rent 1000 by cash.

Here is very basic double entry.

Requirement: Prepare journal entries

Journal entries,

  1. Cash debit by 10000 and capital credit by 10000.
  2. Furniture debit 1000 and cash credit 1000.
  3. Purchase debit 5000 and cash credit 5000.
  4. cash debit 1000 and sales credit 1000.
  5. Rent expense debit 1000 and cash credit 1000.

Problem 2

  1. Naveen invest 10000 cash and 5000 of goods in his business.
  2. Purchase goods for sale 1000.
  3. prepaid rent for 1000.
  4. Paid employee 1000.
  5. Sold goods for 2000 on credit.
  6. Sold goods for 1000 on cash.

Requirements: Prepare journal entries and Ledger.

Journal entries,

  1. Cash 10000 debit, goods 5000 debit and capital 15000 credit (10000+5000=15000).
  2. Purchase debit 1000 and cash credit 1000.
  3. Prepaid rent 1000 debut and cash credit 1000.
  4. Salary expense 1000 and cash credit 1000.
  5. A/R debit by 2000 and sales credit 2000.
  6. Cash debit 2000 and sales credit 2000.


Double entry

Make the trial balance as well for the above transaction.

Double entry

Hope you like this article.

More articles on the site must go through these articles to get new ideas.

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

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

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Naveen Rajput

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