Basic Journal Entries Flashcards
To be able to state basic journal entries easily.
Cash sales (selling price journal entry)
Dr cash in hand
Cr Sales revenue
Cash sales (cost price journal entry)
Dr Cost of sales
Cr Inventory
Owner contributed cash into the business.
Dr cash in hand
Cr Capital
Owner contributed motor vehicles into the business.
Dr Motor vehicles
Cr Capital
Owner withdrew money from the bank for personal use.
Dr Drawings
Cr Cash at bank
Owner withdrew cash from the office for own use.
Dr Drawings
Cr Cash in hand
Business borrowed money from the bank.
Dr Cash at bank
Cr Bank loan
Bought goods for cash.
Dr Inventory
Cr Cash in hand
Paid for goods by cheque.
Dr Inventory
Cr Cash at bank
Bought goods on credit.
Dr Inventory
Cr Trade payables
Returned goods previously bought with cash.
Dr Cash in hand
Cr Inventory
Returned goods previously bought on credit.
Dr Trade payables
Cr Inventory
Paid trade payables amount owing by cheque.
Dr Trade payables
Cr Cash at bank
Received a discount from trade payable for prompt payment.
Dr Trade payables
Cr Discount received
Sold goods on credit (selling price journal entry).
Dr Trade receivables
Cr Sales revenue
Sold goods on credit (cost price journal entry).
Dr Cost of sales
Cr Inventory
Customer returned goods previously sold on credit (selling price journal entry).
Dr Sales returns
Cr Trade receivables
Customer returned goods previously sold on credit (cost price journal entry).
Dr Inventory
Cr Cost of sales
Received cheque from credit customer.
Dr Cash at bank
Cr Trade receivables
Discount was given to credit customer for prompt payment.
Dr Discount allowed
Cr Trade receivables
Bought furniture on credit.
Dr Fixtures and fittings
Cr Other payables
Bought office equipment by cash.
Dr Office equipment
Cr Cash in hand
Paid for rental expense by cash.
Dr Rental expense
Cr Cash in hand
Paid employees salaries by cheque.
Dr Salaries expense
Cr Cash at bank
Deposited cash from the office into the business bank account.
Dr Cash at bank
Cr Cash in hand
Withdrew money from the business bank account for office use.
Dr Cash in hand
Cr Cash at bank
Received rental income from tenant by cheque.
Dr Cash at bank
Cr Rental income
Received interest on bank deposits.
Dr Cash at bank
Cr Interest income
Repaid bank loan by cheque.
Dr Bank loan
Cr Cash at bank
Owner withdrew goods for personal use.
Dr Drawings
Cr Inventory
