A Journal Entry is the first step in the accounting cycle. It records all financial transactions in the books of accounts in chronological order using the double-entry system.
Each transaction has:
- At least one Debit
- At least one Credit
- Equal amounts on both sides
Golden Rules of Accounting
Journal entries follow these three Golden Rules based on account types:
| Account Type | Rule for Debit | Rule for Credit |
|---|---|---|
| Personal Account | Debit the Receiver | Credit the Giver |
| Real Account | Debit What Comes In | Credit What Goes Out |
| Nominal Account | Debit All Expenses and Losses | Credit All Incomes and Gains |
Tip: First identify the account type before passing a journal entry.
In this assignment, you will practice creating 30 basic journal entries used in accounting. Each entry includes a transaction and its correct journal entry answer. This will help you understand how financial transactions are recorded in a business through the double-entry system.
Instructions
- Read each transaction carefully.
- Identify which accounts are affected and apply the Golden Rules of Accounting.
- Write the correct journal entry with Dr (debit) and Cr (credit).
List of 30 Journal Entries with Answers
| S.No | Transaction | Journal Entry |
| 1 | Owner started business with ₹5,00,000 cash | Cash A/c Dr ₹5,00,000 To Capital A/c ₹5,00,000 |
| 2 | Purchased goods for ₹50,000 in cash | Purchase A/c Dr ₹50,000 To Cash A/c ₹50,000 |
| 3 | Sold goods for ₹70,000 in cash | Cash A/c Dr ₹70,000 To Sales A/c ₹70,000 |
| 4 | Paid rent ₹10,000 | Rent A/c Dr ₹10,000 To Cash A/c ₹10,000 |
| 5 | Received commission ₹5,000 | Cash A/c Dr ₹5,000 To Commission Received A/c ₹5,000 |
| 6 | Purchased furniture for ₹25,000 | Furniture A/c Dr ₹25,000 To Cash A/c ₹25,000 |
| 7 | Paid salary ₹20,000 | Salary A/c Dr ₹20,000 To Cash A/c ₹20,000 |
| 8 | Paid electricity bill ₹2,000 | Electricity A/c Dr ₹2,000 To Cash A/c ₹2,000 |
| 9 | Received interest ₹3,000 | Cash A/c Dr ₹3,000 To Interest Received A/c ₹3,000 |
| 10 | Goods sold on credit to Ramesh ₹40,000 | Ramesh A/c Dr ₹40,000 To Sales A/c ₹40,000 |
| 11 | Purchased goods on credit from Ram Traders ₹35,000 | Purchase A/c Dr ₹35,000 To Ram Traders A/c ₹35,000 |
| 12 | Paid Ram Traders ₹35,000 | Ram Traders A/c Dr ₹35,000 To Cash A/c ₹35,000 |
| 13 | Received ₹40,000 from Ramesh | Cash A/c Dr ₹40,000 To Ramesh A/c ₹40,000 |
| 14 | Withdrew cash for personal use ₹5,000 | Drawings A/c Dr ₹5,000 To Cash A/c ₹5,000 |
| 15 | Paid mobile expenses ₹1,000 | Mobile Expense A/c Dr ₹1,000 To Cash A/c ₹1,000 |
| 16 | Paid insurance premium ₹3,000 | Insurance A/c Dr ₹3,000 To Cash A/c ₹3,000 |
| 17 | Banked cash ₹50,000 | Bank A/c Dr ₹50,000 To Cash A/c ₹50,000 |
| 18 | Withdrawn cash from bank ₹10,000 | Cash A/c Dr ₹10,000 To Bank A/c ₹10,000 |
| 19 | Loan taken from SBI ₹1,00,000 | Bank A/c Dr ₹1,00,000 To Loan from SBI A/c ₹1,00,000 |
| 20 | Paid interest on SBI loan ₹5,000 | Interest A/c Dr ₹5,000 To Bank A/c ₹5,000 |
| 21 | Goods returned to supplier Ram Traders ₹2,000 | Ram Traders A/c Dr ₹2,000 To Purchase Return A/c ₹2,000 |
| 22 | Goods returned by Ramesh ₹3,000 | Sales Return A/c Dr ₹3,000 To Ramesh A/c ₹3,000 |
| 23 | Paid office rent by cheque ₹8,000 | Rent A/c Dr ₹8,000 To Bank A/c ₹8,000 |
| 24 | Received cheque from Suresh ₹15,000 | Bank A/c Dr ₹15,000 To Suresh A/c ₹15,000 |
| 25 | Paid advertisement expense ₹6,000 | Advertisement A/c Dr ₹6,000 To Cash A/c ₹6,000 |
| 26 | Paid audit fees ₹4,000 | Audit Fees A/c Dr ₹4,000 To Cash A/c ₹4,000 |
| 27 | Received refund from electricity office ₹500 | Cash A/c Dr ₹500 To Electricity A/c ₹500 |
| 28 | Received advance from customer ₹20,000 | Cash A/c Dr ₹20,000 To Advance from Customer A/c ₹20,000 |
| 29 | Deposited additional capital ₹1,00,000 | Bank A/c Dr ₹1,00,000 To Capital A/c ₹1,00,000 |
| 30 | Issued cheque for printing ₹1,500 | Printing & Stationery A/c Dr ₹1,500 To Bank A/c ₹1,500 |
Assignment Submission Guidelines
- Write all 30 journal entries in your notebook or accounting register.
- Practice each entry in TallyPrime (Optional).
- Submit your completed work with your name and training batch.
- Email a photo or scanned copy of your work to ankititsolutions2@gmail.com
Learning Outcome
By completing this journal entry assignment, you will:
- Understand real-world business transactions.
- Learn how to apply debit and credit rules correctly.
- Build confidence in recording journal entries.
- Prepare for ledger posting and trial balance generation.