Journal Entries

Transaction Type of Golden Rule Journal Entry

Accounts
Mr. Mittal started Cash – Real Debit what Cash A/c Dr. Rs.50000
business with cash Account comes in To Capital A/c Rs.50000
Rs. 50,000 Mr. X – Personal Credit the
A/c giver
Purchased goods Purchase - Debit all Purchase A/c Dr. Rs.20000
for cash Rs.20000 Nominal A/c expenses To Cash A/c Rs.20000
Cash -Real Credit what
A/c goes out
Purchased goods Purchase – Debit all Purchase A/c Dr.Rs.12000
from NMDC for Rs. Nominal A/c expenses To NMDC’s A/c Rs.12000
12000 Mr. X - Credit the
(Credit Purchase) Personal A/c giver
Purchase Furniture – Debit what Furniture A/c Dr. Rs.6000
furniture for cash Real A/c comes in To Cash A/c Rs.6000
for Rs. 6000 Cash - Credit what
Real A/c goes out
Sold goods for Cash - Debit what Cash A/c Dr. Rs.13000
cash for Rs. 13000 Real A/c comes in To Sales A/c Rs.13000
Sales - Credit all gains 1
Nominal A/c
 Journal Entries
Transacti Type of Golden Journal Entry
on Accounts Rule
Sold Steel M&M - Debit the M&M’s A/c Dr. Rs.15000
on credit Personal A/c receiver To Sales A/c Cr. Rs.15000
to M&M for Sales - Credit all
Rs. 15000 Nominal A/c incomes
and gains
Paid cash NMDC- Debit the NMDC’s A/c Dr. Rs.12000
to NMDC Personal A/c receiver To Cash A/c Cr. Rs.12000
Rs. 12000 Cash - Credit
Real A/c what goes
out
Received Cash - Debit what Cash A/c Dr.Rs.15000
cash from Real A/c comes in To M&M A/c Cr. Rs,15000
M&M Rs. M&M - Credit the
15000 Personal giver

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 Journal Entries
Transaction Type of Accounts Golden Rule Journal Entry
Brought machinery Machinery – Real A/c Debit what comes Machinery A/c Dr.
for cash for Rs.80000 Cash - Real A/c in 80000
Credit what goes To Cash
out 80000
Withdrew cash from Drawings - Personal A/c Debit the receiver Drawings (Capital
office for personal Cash - Real A/c Credit what goes Account) A/c Dr.
use Rs. 25000 out 25000
To Cash A/c
25000
Paid Rent of Rs. Rent - Nominal A/c Debit all expenses Rent A/c Dr. 4000
4000 by Cheque Bank - Personal A/c Credit the giver To Bank A/c
4000
Paid Wages for cash Wages - Nominal A/c Debit all expenses Wages A/c Dr.
Rs. 4500 Cash - Real A/c Credit what goes 4500
out To cash A/c
4500

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 Journal Entries
Transaction Type of Accounts Golden Rule Journal Entry
Paid salary to Mr. Ram Salary - Nominal A/c Debit all expenses Salary A/c Dr.
Rs. 1200 Cash - Real A/c Credit what goes 1200
out To Cash A/c
1200
Received Commission Cash - Real A/c Debit what comes Cash A/c Dr.
Rs. 2000 Commission – Nominal A/c in 2000
Credit all gains To Commission
2000
Salaries due to clerks Salaries - Nominal Debit all expenses Salaries A/c Dr.
Rs. 2000 A/c 2000
Credit the giver
Outstanding salaries To O/S Salaries
(liability) – 2000
Representative personal
A/c
Out of the rent paid Prepaid rent (asset) – Debit the receiver Prepaid Rent A/c Dr.
this year , Rs. 600 is Representative personal 600
for next year a/c
Credit all gains 4
Rent- Nominal A/c To Rent A/c 600
(benefit for next year)