Journal entries are the first step of the accounting system, In this article, you will learn “how to make journal entries in a double-entry system. So let’s move to problem 1.
Journal Entries In Double Entry System
- Naveen purchased a bike for 4000 for business use.
- Purchase goods for cash 4000.
- Make credit sales to Mr. Mobeen for 1000.
- Sold goods for 1000 in cash.
- Pay rent for 1000.
- Invest cash 5000 in business.
Make the journal entries for the given transactions.
- Bike debit 4000 and cash credit 4000 (cash is not mentioned here but we use it because if nothing is mentioned in purchasing transaction then it means whether the transaction takes place on cash or bank).
- Goods debit for 4000 and cash credit by 4000.
- A/R debit by 1000 and sales credit1000.
- Cash debit 1000 and sales credit 1000.
- Rent expense 1000 debit and cash 1000 credit.
- Cash debit 5000 and capital credit 5000.
- Naveen started his business with 10000 cash and introduced equipment worth 50000 in his business.
- Purchase car on credit for 20000.
- Purchase material for business on cash 2000.
- Payable wages of 5000.
- Paid electricity bill of 1000.
- Make sales of 3000 on cash.
- Sold goods for 5000 and received 3000 cash.
- Make sales of 3000 and cash sales of 2000.
Make journal entries.
- Cash debit of 10000, equipment debit of 50000, and capital credit for 60000. (10000+50000=60000)
- Car debit of 20000 and A/P credit for 20000.
- Material debit 2000 and cash 2000 credit.
- Unpaid wages by 5000 debit and A/P credit by 5000.
- Electricity expense 1000 and cash credit 1000.
- Cash debit 3000 and sales credit for 3000.
- Cash debit of 3000, A/R debit of 2000, and sales credit for 5000.
- A/R 3000, Cash debit of 2000, and sales credit of 5000.
- Bank overdraft of 5000.
- Start business with the building of 500000.
- Paid bank overdraft bank.
- Make a Purchase of 50000 on credit.
- Make sales of 60000 on cash.
- Paid wages of 10000.
- Took a loan from a bank of 100000.
- Purchase furniture for 20000 in cash.
- Make sales of furniture on credit for 30000.
- Purchase mobile for 5000.
Make journal entries.
- Bank debit for 5000 and A/P credit by 5000.
- Building debit 500000 and capital credit 500000.
- A/P debit by 5000 and bank credit by 5000.
- Purchase debit 50000 and A/P credit 50000.
- Cash debit 60000 and sales credit 60000.
- Wages expense 60000 and cash credit 10000.
- Bank debit of 100000 and A/P credit of 100000.
- Furniture debit 20000 and cash credit 20000.
- A/R debit 30000 and sales credit 30000.
- Mobile debit 5000 and cash credit 5000.
- Start a business with a bank loan of 100000.
- Introduced a car worth 100000 in his business.
- Make a purchase of a new car worth 50000.
- Purchase goods on credit for 50000.
- purchase goods of 10000 and pay by check.
- Make sales of 2000 on credit and give a discount to customers of 20%.
- Make sales on cash for 5000 and give a discount of 10%.
- Purchase goods of 100000 in cash and received a 10% discount from the supplier.
- Make credit sales of 10000.
- Purchase new mobile of 20000.
- Withdrew of 5000 for personal use.
- Invest Cash of 100000 in business.
- Make a purchase of 50000 in cash.
- Make sales of 50000 and cash sales of 20000.
- Received 50000 cash from a credit customer.
- Bank debit of 100000 and capital credit of 100000.
- Car debit of 100000 and capital credit of 100000.
- Car debit of 50000 and cash credit by 50000.
- Purchase debit of 50000 and A/P credit by 50000.
- Purchase 10000 with debit and ban credit by 10000.
- A/R debit of 1800, Discount debit of 200, and sales credit of 2000.
- Cash debit of 4500, discount debit of 500, and sales credit of 5000.
- Goods debit by 100000, Cash credit 90000 and discount received credit 10000. (90000+10000=100000.
- A/R debit by 10000 and sales credit by 10000.
- Mobile debit by 20000 and cash credit by 20000.
- Withdrew debit of 5000 and cash credit of 5000.
- Cash debit by 100000 and capital credit by 100000.
- Purchase by 50000 debit and cash credit by 50000.
- Cash debit of 20000, A/R debit of 50000, and sales credit by 70000. (20000+50000=70000).
- Cash debit by 50000 and A/R credit by 50000.
Problem 5 credit entries
- Purchase goods for credit 5000.
- purchase a car on credit for 100000.
- Make a purchase of a bike with a credit of 50000.
- Credit sale of 10000.
- sales on the credit of 5000.
- Purchase debit 5000 A/P credit by 5000.
- Car debit 100000 A/P 100000 credit.
- Bike debit 50000 and 50000 A/P credit.
- A/R 10000 and sales credit 10000.
- A/R 5000 and credit sales of 5000.
Problem 7 Debit entries
- Purchase on cash 4000.
- Purchase goods of 3000 and paid by check.
- Paid utility bill of 5000 in cash.
- Paid wages of 4000 by check.
- Liabilities of 5000 paid by check.
- Purchase debit 4000 and cash credit 4000.
- Purchase debit of 3000 and bank credit by 3000.
- Utilities bill expense debit 5000 and cash credit 5000.
- Wages expense debit by 4000 and bank credit by 4000.
- Liabilities debit by 5000 and bank credit by 5000.
Last problem of journal entries in this article.
- Sales of 5000 on credit and give 10% discount.
- 4500 received by check through a credit customer.
- Make sales on cash for 2000 and received 1800 with the discount settlement.
- Pay for service 5000(not yet paid).
- Paid off services by check 5000.
- Took a loan from a supplier of 10000 by check.
- Make sales for 2000 by cash.
- A/R debit of 4500, discount debit of 500, and sales credit by 5000.
- Bank debit of 4500 and A/R credit of 4500.
- Cash debit of 1800, discount debit of 200, and sales credit of 2000.
- services debit 5000 and A/P credit by 5000.
- services debit by 5000 and bank credit by 5000.
- Bank debit by 10000 and loan payable credit by 10000.
- Cash 2000 debit and sales credit by 2000.
If an individual asset is increased then which balance it will show?
When the balance of the asset is increased it will show a debit balance.
Every transaction has at least two effects, is this statement true?
Every transaction has a dual effect as one thing increases the other will decrease automatically.
What is performed service on account journal entry?
If an organization gives its services to the clients, their client’s account must show some payment with the description of performing service.
How to increase assets and decrease liabilities
Increasing assets can be done through the capital of the business and liabilities will be decreased by paying the debts.
Why a business account shows the expenses?
Expenses are debited to increase their balance because the business is spending on the operations and on the other overhead cost because of this company’s expense account balance is debited.
Hope you like this article, this article may help you to clear your all problems related to double entries.