Skip to content
- Courses
- DSA to Development
- Newly Launched!
- For Working Professionals
- For Students
- GATE Exam Courses
- All Courses
- Tutorials
- Data Structures & Algorithms
- DSA for Beginners
- Data Structures
- Algorithms
- Complete DSA Tutorial
- Competitive Programming
- Company Wise SDE Sheets
- DSA Cheat Sheets
- Top 100 DSA Interview Questions Topic-wise
- 100 Days of Code
- Python
- ML & Data Science
- Machine Learning
- Data Science Tutorial
- Data Science Packages
- Data Visualization
- Data Analysis
- Deep Learning
- NLP Tutorial
- OpenCV Tutorial
- Interview Questions
- System Design
- Interview Corner
- Languages
- Web Development
- HTML
- CSS
- JavaScript
- TypeScript
- ReactJS
- Node.js
- PHP
- AngularJS
- jQuery
- Web Development Using Python
- Web Design
- 100 Days of Web Development
- CS Subjects
- DevOps And Linux
- School Learning
- GATE
- GeeksforGeeks Videos
- Data Structures & Algorithms
- Jobs
- Practice
- All DSA Problems
- Problem of the Day
- Company Wise Coding Practice
- GfG SDE Sheet
- Practice Problems Difficulty Wise
- Language Wise Coding Practice
- Curated DSA Lists
- Contests
-
Last Updated : 05 Apr, 2023
Summarize
Comments
Improve
The amount invested in the business whether in the means of cash or kind by the proprietor or owner of the business is called capital. The capital account will be credited and the cash or assets brought in will be debited.
Journal Entry:
Example 1: Sahil started his business with cash, furniture, and a Motorbike ₹10000, ₹20000, & ₹30000, respectively.
Solution:
Example 2: Business started with cash, stock, and land ₹50,000, ₹1,00,000, and ₹8,50,000, respectively.
Solution:
See AlsoIf two or transactions of same nature are journalized together it is known as ________________.Separate journal entryCompound journal entryPostingNone of aboveAccounting Procedures on Writing off an Investment
Please Login to comment...
Similar Reads
Journal Entry (Capital, Drawings, Expenses, Income & Goods)
1. Capital Account: The amount invested in the business whether in the means of cash or kind by the proprietor or owner of the business is called capital. The capital account will be credited and the cash or assets brought in will be debited. Journal Entry: Example: Sahil started his business with cash, furniture, and a Motorbike ₹10000, ₹20000,
3 min read
Journal Entry for Interest on Capital
The proprietor can charge interest on the amount invested by him/her in the business as capital, which is shown as Interest on Capital. Interest on Capital Journal Entry recognizes the interest expense incurred by the partnership for using the partner's capital. Interest on Capital A/c (Expense) is debited in this case and Capital A/c of the respec
1 min read
Capital Receipt and Capital Expenditure: Meaning and Sources of Capital Receipts
The Government Budget is a statement of expected receipts and expected expenditures of the Government (for the coming fiscal year) that reveals the budgetary policy of the Government to achieve the twin objective of growth and stability. The financial/fiscal year is taken from 1st April to 31st March. The Budget unfolds (i) the financial performanc
5 min read
Journal Entry for Loan Given
Businesses can also provide loans to any person or entity. A. Loan is given to a person: Journal Entry: Example: A loan of ₹5,000 has been provided to Dharmesh. Solution: B. Interest charged and then received on loan given: There can be a situation where the interest is charged first and then received. There will be two Journal Entries in this case
1 min read
Journal Entry for Bad Debts and Bad Debts Recovered
Bad Debts: When the goods are sold to customers on credit, there can be a situation where a few of them fail to pay the amount due to them because of insolvency or any other reason, and then the amount that remains unrecovered is called Bad Debts. Journal Entry: Example: Amount due from Gaurav ₹5,000 is irrecoverable as he became insolvent.Gaurav,
1 min read
Journal Entry for Income Received in Advance or Unearned Income
Sometimes, businesses receive money relating to the coming month or year which has not been earned yet. Such an income that has not been earned yet but has been received in advance is called Unearned Income. Unearned Income is considered to be a liability by the business. Ex- If the Commission for the month of July is received in the month of June,
1 min read
Journal Entry for Loss of Insured Goods/Assets
Sometimes insured goods are lost by fire, theft, or any other reason. There can be three cases related to the loss of insured goods or assets. A. Claim does not get accepted by the Insurance Company: Journal Entry: Example: Goods lost by fire ₹50,000. Insurance co. does not accept the claim.Assets lost by fire ₹20,000. Insurance co. does not accept
1 min read
Journal Entry for Cash and Credit Transactions
Transactions related to the purchase and sale of goods can be of two types, Cash or Credit. A. Cash Transactions: Cash transactions are those transactions in which payment is made or received in cash at the time of purchase or sale of goods. Cash transactions can be identified by: When the Name of the Party and Cash both are given in the transactio
2 min read
Journal Entry for Full/Final Settlement
A business may allow or receive a discount at the time of full and final settlement of the accounts of debtors or creditors. Journal Entry: Example: 01 April 2022: Purchased goods from Sayeba at the list price of ₹10,000 at a 10% Trade Discount.05 April 2022: Returned goods to Sayeba for the list price of ₹1,000.10 April 2022: Paid cash to Sayeba ₹
1 min read
Journal Entry for Outstanding Expenses
Outstanding expenses are those expenses that are related to the same accounting period in which accounts are being made but are not yet paid. Journal Entry: Example 1: Salaries due to employees ₹11,000. Solution: Example 2: Rent due to landlord ₹20,000. Solution:
1 min read
Journal Entry for Sales and Purchase of Goods
Goods are those items in which a business deals. In other words, goods are the commodities that are purchased and sold in a business on a daily basis. Goods are denoted as 'Purchases A/c' when goods are purchased and 'Sales A/c' when they are sold. Goods Account is classified into five different accounts for the purpose of passing journal entries:
2 min read
Journal Entry for Discount Allowed and Received
A discount is a concession in the selling price of a product offered by a seller to its customers. According to nature, there are two types of discount: A. Discount Allowed B. Discount Received A. Discount Allowed: When at the time of sales or receiving cash, any concession is given to the customers, it is called discount allowed. Journal Entry: Ex
2 min read
Journal Entry for Sale and Purchase of Assets
Assets (Machinery, Building, Land, etc.) can also be purchased or sold in cash or on credit. Assets purchased are not represented through Purchases but with the name of the Asset. Journal Entry: (When Assets are Purchased) Example: Machinery purchased for cash ₹50,000.Machinery purchased from Vishal ₹50,000.Solution: Journal Entry: (When Assets are
1 min read
Opening Journal Entry
After closing all the books at the end of a financial year, every business starts its new books at the beginning of each year. Closing balances of all the accounts are carried forward to the new year as opening balances. As it is the first entry in the new financial year, it is called Opening Journal Entry. Journal Entry: Example: ABC Ltd. has the
1 min read
Journal Entry for Loan Taken
A business can take an amount of money as a loan from a bank or outsider. In return, the business has to pay interest. A. Loan is taken from a bank or person: Journal Entry: Example: ₹10,000 was taken as a loan from the bank. Solution: B. Interest charged by the bank or person and then paid: There can be a situation where the interest is charged fi
1 min read
Journal Entry for Depreciation
Depreciation is the decrease in the value of assets due to use or normal wear and tear. Journal Entry: Example: Depreciation charged on machinery ₹5,000. Solution: Example: Machinery purchased for ₹20,000.Depreciation charged on machinery @10%. Solution:
1 min read
Journal Entry for Interest on Drawings
The amount withdrawn from the capital by the proprietor for personal use is called drawings. Businesses can charge interest on the amount of drawings. Journal Entry: Example 1: Interest is charged on drawings ₹500. Solution: Example 2: Withdrawn cash from the business for personal use ₹5,000.Interest charged on Drawings @6%. Solution:
1 min read
Journal Entry for Expenditure on Assets (Erection or Installation)
Any expenditure incurred in the erection or installation of any building or machinery or any type of asset is considered to be capital expenditure and debited under the name of the particular asset. Journal Entry: Example 1: Machinery purchased worth ₹50,000 and paid installation charges ₹2,000. Solution: Example 2: Purchased building for ₹5,00,000
1 min read
Journal Entry for Income
Any monetary benefit arising from the business can be termed as income. Rent received, Commission received, Dividend earned, Interest received, etc are some examples of income. Income is treated as a Nominal account. Cash Account will be increased with the amount received as income, so it will be Debited and Income Account will be Credited accordin
1 min read
Journal Entry for Paid Expenses
Any amount spent in order to purchase or sell goods or services that generates revenue in the business is called expenses. Rent, Commission paid, Salaries & Wages Paid, Interest paid, etc are some examples of Expenses. Expenses are a part of the Nominal account. The Cash Account will be decreased with the amount paid as expenses, so it will be
1 min read
Journal Entry for Drawings
Withdrawal of any amount in cash or kind from the enterprise for personal use by the proprietor is termed as Drawings. The Drawings account will be debited, and the cash or goods withdrawn will be debited. Journal Entry: Example 1: Cash and Goods are withdrawn from the office for personal use ₹500 and ₹1,000, respectively. Solution: Example 2: Paid
1 min read
Journal Entry for Income Tax
Income Tax is paid by the business on the profit earned during the year. Income Tax is a personal liability of the proprietor. The journal entry will be: A. Payment of Income Tax: Journal Entry: B. Refund of Income Tax: Journal Entry: Example: Income Tax paid ₹1,500.Refund of Income Tax received ₹500. Solution:
1 min read
Journal Entry for Life Insurance Premium & Employee's Life Insurance Premium
1. Life Insurance Premium: Sometimes, Life Insurance Premium is paid by the business on the behalf of the proprietor. Life Insurance Premium of the proprietor is considered to be a personal expense of the proprietor and hence is treated as Drawings by the business. Journal Entry: Example: Life Insurance Premium is paid ₹5,000. Solution: 2. Employee
1 min read
Journal Entry for Use of Goods in Business
Sometimes goods of a business are used in the business itself. If this happens, those goods are considered assets by the business. Journal Entry: Example 1: A electrical goods dealer uses fans for the business worth ₹1,000. Solution: Example 2: A furniture merchant uses furniture for the business worth ₹5,000. Solution:
1 min read
Journal Entry for Expenses on Purchase of Goods
Purchasing process involves a number of steps starting from placing an order and ending with the delivery of goods. Apart from the cost incurred in purchasing the goods, any additional expenses like Carriage, Import Duty, etc is also paid. Any expenses incurred during the purchase of goods will be shown separately unlike an expenditure on assets. J
1 min read
Journal Entry for Outstanding Salary
Outstanding Salary is a liability for the firm. Outstanding salary journal entry is passed to record the salary that is due concerning the employees but not yet paid. When salary is not paid on time, it is shown under the Liabilities side of the balance as an 'Outstanding Salary' which means it has now become the liability of the firm to pay salari
1 min read
Journal Entry for Prepaid Insurance
Prepaid Insurance is the amount of insurance premium that the company pays in one financial year, and avails its benefit in some other financial year, generally in the upcoming financial year. Prepaid Insurance journal entry is passed to record the amount paid as advance for the insurance. Prepaid insurance is treated as the asset of the firm and i
1 min read
Journal Entry for Provisions
A Provision in accounting is generally some set aside profits to be used under specific contingencies. They are the reserves that are being made for specific situations and are to be compulsorily used in those conditions only. A provision is seen as an upcoming liability and should not be treated as savings. Provisions journal entry is passed to sh
1 min read
Journal Entry for Rent Paid
Sometimes a business does not own any specific type of property, plant, and/or machinery. They take the required asset on rent and pay the pre-specified installment for the asset in terms of cash or cheques. Rent paid journal entry is passed in order to record the necessary rent payments against rented assets. Rent is an expense for business and th
1 min read
Journal Entry for Deferred Revenue
Deferred Revenue is the income received in exchange for goods that are yet to be delivered. Deferred Revenue is also known as Unearned Income or Unearned Revenue. Deferred revenue journal entry is passed to record the advance payments received for goods and services. In this case, the balance for cash/bank (debit balance) increases due to the inflo
1 min read
Article Tags :
Trending in News
- OpenAI o1 AI Model Launched: Explore o1-Preview, o1-Mini, Pricing & Comparison
- How to Merge Cells in Google Sheets: Step by Step Guide
- How to Lock Cells in Google Sheets : Step by Step Guide
- PS5 Pro Launched: Controller, Price, Specs & Features, How to Pre-Order, and More
- #geekstreak2024 – 21 Days POTD Challenge Powered By Deutsche Bank
We use cookies to ensure you have the best browsing experience on our website. By using our site, you acknowledge that you have read and understood our Cookie Policy & Privacy Policy
'); $('.spinner-loading-overlay').show(); jQuery.ajax({ url: writeApiUrl + 'create-improvement-post/?v=1', type: "POST", contentType: 'application/json; charset=utf-8', dataType: 'json', xhrFields: { withCredentials: true }, data: JSON.stringify({ gfg_id: post_id, check: true }), success:function(result) { jQuery.ajax({ url: writeApiUrl + 'suggestions/auth/' + `${post_id}/`, type: "GET", dataType: 'json', xhrFields: { withCredentials: true }, success: function (result) { $('.spinner-loading-overlay:eq(0)').remove(); var commentArray = result; if(commentArray === null || commentArray.length === 0) { // when no reason is availaible then user will redirected directly make the improvment. // call to api create-improvement-post $('body').append('
'); $('.spinner-loading-overlay').show(); jQuery.ajax({ url: writeApiUrl + 'create-improvement-post/?v=1', type: "POST", contentType: 'application/json; charset=utf-8', dataType: 'json', xhrFields: { withCredentials: true }, data: JSON.stringify({ gfg_id: post_id, }), success:function(result) { $('.spinner-loading-overlay:eq(0)').remove(); $('.improve-modal--overlay').hide(); $('.unlocked-status--improve-modal-content').css("display","none"); $('.create-improvement-redirection-to-write').attr('href',writeUrl + 'improve-post/' + `${result.id}` + '/', '_blank'); $('.create-improvement-redirection-to-write')[0].click(); }, error:function(e) { $('.spinner-loading-overlay:eq(0)').remove(); var result = e.responseJSON; if(result.detail.non_field_errors.length){ $('.improve-modal--improve-content .improve-modal--improve-content-modified').text(`${result.detail.non_field_errors}.`); jQuery('.improve-modal--overlay').show(); jQuery('.improve-modal--improvement').show(); $('.locked-status--impove-modal').css("display","block"); $('.unlocked-status--improve-modal-content').css("display","none"); $('.improve-modal--improvement').attr("status","locked"); $('.improvement-reason-modal').hide(); } }, }); return; } var improvement_reason_html = ""; for(var comment of commentArray) { // loop creating improvement reason list markup var comment_id = comment['id']; var comment_text = comment['suggestion']; improvement_reason_html += `
${comment_text}
`; } $('.improvement-reasons_wrapper').html(improvement_reason_html); $('.improvement-bottom-btn').html("Create Improvement"); $('.improve-modal--improvement').hide(); $('.improvement-reason-modal').show(); }, error: function(e){ $('.spinner-loading-overlay:eq(0)').remove(); // stop loader when ajax failed; }, }); }, error:function(e) { $('.spinner-loading-overlay:eq(0)').remove(); var result = e.responseJSON; if(result.detail.non_field_errors.length){ $('.improve-modal--improve-content .improve-modal--improve-content-modified').text(`${result.detail.non_field_errors}.`); jQuery('.improve-modal--overlay').show(); jQuery('.improve-modal--improvement').show(); $('.locked-status--impove-modal').css("display","block"); $('.unlocked-status--improve-modal-content').css("display","none"); $('.improve-modal--improvement').attr("status","locked"); $('.improvement-reason-modal').hide(); } }, }); } else { if(loginData && !loginData.isLoggedIn) { $('.improve-modal--overlay').hide(); if ($('.header-main__wrapper').find('.header-main__signup.login-modal-btn').length) { $('.header-main__wrapper').find('.header-main__signup.login-modal-btn').click(); } return; } } }); $('.left-arrow-icon_wrapper').on('click',function(){ if($('.improve-modal--suggestion').is(":visible")) $('.improve-modal--suggestion').hide(); else{ $('.improvement-reason-modal').hide(); } $('.improve-modal--improvement').show(); }); function loadScript(src, callback) { var script = document.createElement('script'); script.src = src; script.onload = callback; document.head.appendChild(script); } function suggestionCall() { var suggest_val = $.trim($("#suggestion-section-textarea").val()); var array_String= suggest_val.split(" ") var gCaptchaToken = $("#g-recaptcha-response-suggestion-form").val(); var error_msg = false; if(suggest_val != "" && array_String.length >=4){ if(suggest_val.length <= 2000){ var payload = { "gfg_post_id" : `${post_id}`, "suggestion" : `
${suggest_val}
`, } if(!loginData || !loginData.isLoggedIn) // User is not logged in payload["g-recaptcha-token"] = gCaptchaToken jQuery.ajax({ type:'post', url: "https://apiwrite.geeksforgeeks.org/suggestions/auth/create/", xhrFields: { withCredentials: true }, crossDomain: true, contentType:'application/json', data: JSON.stringify(payload), success:function(data) { jQuery('.spinner-loading-overlay:eq(0)').remove(); jQuery('#suggestion-section-textarea').val(""); jQuery('.suggest-bottom-btn').css("display","none"); // Update the modal content const modalSection = document.querySelector('.suggestion-modal-section'); modalSection.innerHTML = `
Thank You!
Your suggestions are valuable to us.
You can now also contribute to the GeeksforGeeks community by creating improvement and help your fellow geeks.
`; }, error:function(data) { jQuery('.spinner-loading-overlay:eq(0)').remove(); jQuery('#suggestion-modal-alert').html("Something went wrong."); jQuery('#suggestion-modal-alert').show(); error_msg = true; } }); } else{ jQuery('.spinner-loading-overlay:eq(0)').remove(); jQuery('#suggestion-modal-alert').html("Minimum 5 Words and Maximum Character limit is 2000."); jQuery('#suggestion-modal-alert').show(); jQuery('#suggestion-section-textarea').focus(); error_msg = true; } } else{ jQuery('.spinner-loading-overlay:eq(0)').remove(); jQuery('#suggestion-modal-alert').html("Enter atleast four words !"); jQuery('#suggestion-modal-alert').show(); jQuery('#suggestion-section-textarea').focus(); error_msg = true; } if(error_msg){ setTimeout(() => { jQuery('#suggestion-section-textarea').focus(); jQuery('#suggestion-modal-alert').hide(); }, 3000); } } document.querySelector('.suggest-bottom-btn').addEventListener('click', function(){ jQuery('body').append('
'); jQuery('.spinner-loading-overlay').show(); if(loginData && loginData.isLoggedIn) { suggestionCall(); return; } // load the captcha script and set the token loadScript('https://www.google.com/recaptcha/api.js?render=6LdMFNUZAAAAAIuRtzg0piOT-qXCbDF-iQiUi9KY',[], function() { setGoogleRecaptcha(); }); }); $('.improvement-bottom-btn.create-improvement-btn').click(function() { //create improvement button is clicked $('body').append('
'); $('.spinner-loading-overlay').show(); // send this option via create-improvement-post api jQuery.ajax({ url: writeApiUrl + 'create-improvement-post/?v=1', type: "POST", contentType: 'application/json; charset=utf-8', dataType: 'json', xhrFields: { withCredentials: true }, data: JSON.stringify({ gfg_id: post_id }), success:function(result) { $('.spinner-loading-overlay:eq(0)').remove(); $('.improve-modal--overlay').hide(); $('.improvement-reason-modal').hide(); $('.create-improvement-redirection-to-write').attr('href',writeUrl + 'improve-post/' + `${result.id}` + '/', '_blank'); $('.create-improvement-redirection-to-write')[0].click(); }, error:function(e) { $('.spinner-loading-overlay:eq(0)').remove(); var result = e.responseJSON; if(result.detail.non_field_errors.length){ $('.improve-modal--improve-content .improve-modal--improve-content-modified').text(`${result.detail.non_field_errors}.`); jQuery('.improve-modal--overlay').show(); jQuery('.improve-modal--improvement').show(); $('.locked-status--impove-modal').css("display","block"); $('.unlocked-status--improve-modal-content').css("display","none"); $('.improve-modal--improvement').attr("status","locked"); $('.improvement-reason-modal').hide(); } }, }); });