JOURNAL

Date Particulars DEBIT (Rs) CREDIT (Rs)

60000 60000

1-Jun Cash A/c Dr To Share capital A/c (6000 Equity Shares of Rs 10/- each issued) 1-Jun Cash A/c Dr To Bank Loan A/c (Borrowed Rs. 25000 from Canara Bank) 2-Jun Office Rent A/c Dr To Cash A/c (Office Rent paid Rs 2500) 6-Jun Computer A/c Dr To Cash A/c To Creditors A/c (Paid Rs 15000/- as downpayment for computer balance to be paid in three equal installments) 8-Jun Supplies Purchased A/c Dr To Creditors A/c (Received Supplies) 10-Jun Bills Recievables A/c Dr To Services Provided A/c (Raised invoice on customers for providing services) 16-Jun Creditors To Supplies Purchased A/C (Supplies rejected) Creditors A/c Dr To Cash A/c (Cash paid for the other supplies) 19-Jun Bank A/c Dr To Bills Recievable A/c (Received cheques in payment of Bills) 20-Jun Bills Recievable A/c Dr To Services Provided A/c (Raised bills for providing services)

25000 25000

2500 2500

40000 15000 25000

3900 3900

29200 29200

710 710

3190 3190

14100 14100

19400 19400

23-Jun Bank A/c Dr To Unearned Revenued A/c Received Advance payment for services) 27-Jun Supplies Purchased A/c Dr To Cash A/c (Rejected goods accepted at a discount of Rs 90/-) 28-Jun Bank A/c Dr To Bill Recievable A/c (Received Cheques for payment of bills) 29-Jun Bank Loan A/c Dr Interest on Bank Loan A/c Dr To Bank A/c (Repayed part of bank loan with interest) 30-Jun Supplies expenses account To Supplies Purchase account (Supplies consumed) 30-Jun Salaries A/c Dr To Bank A/c (Paid salaries to employees) Electricity A/c Dr To O/S Electricity A/c (Received Electricity Bill for June)

9800 9800

620 620

7100 7100

14000 340 14340

1410 1410 16500 16500

450 450 0

Explanations Cash is coming into the business Equity is increasing, implying increase in Liabilities

Goldern Rules Increase in Asset - Debit Increase in Equity/ Liabilty- Credit

Cash is coming into the business Bank loan needs to be paid back- Increase in liability

Increase in Asset- Debit Increase in Liability- Credit

Rent is an expense for the company- expense increases Cash is going out

Increase in Expense - Debit Decrease in Asset - Credit

Computer coming into the business- Asset Increase Paid 15000 cash as down payment, Cash going out Rs. 25000 to be paid in 3 equal installments- Liability

Increase in Asset - Debit Decrease in Asset - Credit Increase in Liability - Credit

Supplies purchased- considered an expense Need to pay the supplier in future- liability

Increase in Expense - Debit Increase in Liability - Credit

Bills are raised, will be converted into cash in future- Asset Service provided increases revenue -

Increase in Asset - Debit Increase in Income - Credit

When Supplies are rejected- the liability to pay the supplier reduces; also the expenses booked inrespect of purchase is reverted When cash is paid to the supplier- the liabilty to pay is over Cash goes out of the business

Decrese in Liability - Debit Decrease in Expense - Credit

Decrease in Liability - Debit Decrease in Asset - Credit

Balance in your bank account rises On reciept of cash into bank account- the bills recievables gets cancelled, hence assets decreases Bills are raised, will be converted into cash in future- Asset Service provided increases revenue -

Increase in Assets - Debit Decrease in Assets - Credit

Increase in Asset - Debit Increase in Income - Credit

Received cash- assumed to be into bank account As payment is received before the service is provided, it can't be recognised as Revenue, hence treated as liability ie. Company is liable to pay the services in future Rejected supplies accepted back- considered an expense Cash goes out of the business

Increase in Assets - Debit Increase in Liability - Credit

Increase in Expense- Debit Decrease in Asset - Credit

Balance in your bank account rises On reciept of cash into bank account- the bills recievables gets cancelled, hence assets decreases When Loan is repayed- Liabilities reduces Interest is an expense for the company- Expense rises Cash going out from the bank account of the business

Increase in Assets - Debit Decrease in Assets - Credit

Decrease in Liability - Debit Increase in Expense - Debit Decrease in Assets - Credit

Supplies consumed and hence transferred to expense For the month of june, balance goes to Balance sheet Salaries is an expense for the company Cash goes out from the company Increase in expense - Debit Decrease in Assets - Credit

Electricity bill is an Expense Its not yet paid, hence its an liability

Increase in Expense- Debit Increase in Liability - Credit

CAPITAL ACCOUNT Date Particulars Amount Date Particulars By Cash Account

To Balance C/F

60000

OFFICE RENT ACCOUNT Date Particulars To Cash A/c Amount Date 2500 Particulars

By P & L A/c

COMPUTER ACCOUNT Date Particulars To Cash To Creditors Amount Date 15000 25000 Particulars By Balance C/F

CREDITORS ACCOUNT Date Particulars To Supplies Purchased A/c To Cash A/c To Balance C/f Amount Date 710 3190 25000 28900 SUPPLIES PURCHASED ACCOUNT Date Particulars To Creditors To Cash Amount Date 3900 620 4520 2400 Particulars By Creditors By supplies expenses By Bal c/d Particulars By Computers By Supplies Purchased

to bal b/d Supplies expenses A/c To supplies A/c

Date

1410 1410 1410

By bal c/d

To bal b/d

BILLS RECIEVABLES ACCOUNT Date Particulars To Services Provided To Services Provided Amount Date 29200 19400 Particulars By Bank By Bank By Balance C/f 48600 SERVICES PROVIDED ACCOUNT Date Particulars Amount Date Particulars By Bills Recievables By Bills Recievables

To P & L A/C

48600 48600

UNEARNED REVENUE Date Particulars To Balance C/F Amount 9800 Date Particulars By Bank A/c

9800

INTEREST ON BANK LOAN ACCOUNT Date Particulars To Bank A/c Amount Date 340 Particulars

By P & L A/C

340

SALARIES ACCOUNT Date Particulars To Bank Amount Date 16500 Particulars By P & L A/C

16500

ELECTRICITY ACCOUNT Date Particulars To O/S Electricity Account Amount 450 By P & L A/C Date Particulars

450 OUTSTANDING ELECTRICITY ACCOUNT Date Particulars Amount Date Particulars By Electricity A/C By Balance C/F 450 450 CASH ACCOUNT Date Particulars To Share Capital Account To Bank Loan A/c Amount Date 60000 25000 Particulars By Office Rent By Computer By Creditors By Supplies Purchased By Balance C/F

85000

BANK ACCOUNT Date Particulars To Bills Recievables A/c To Advance Received A/c To Bills Recievables A/c Amount Date 14100 9800 7100 Particulars By Bank Loan A/c By Interest on Bank Loan By Salaries A/c By Balance C/F

31000

BANK LOAN ACCOUNT Date Particulars To Bank A/c By Balance C/F Amount 14000 11000 Date Particulars By Cash A/c

25000

Amount 60000

Amount

2500

Amount 40000

Amount 25000 3900

28900

Amount 710 1410 2400 4520

1410 1410

Amount 14100 7100 27400 48600

Amount 29200 19400

48600

Amount 9800

9800

Amount

340

340

Amount 16500

16500

Amount

450

450

Amount 450

450

Amount 2500 15000 3190 620 63690

63690 160

85000

Amount 14000 340 16500 160

31000

Amount 25000

25000

Trial balance TRAIL BALANCE ACCOUNT Equipment Supplies Debtors Cash Bank Loan Payable Creditors Unearned revenue Electricity expense payable Share Capital Revenue from services Salaries Expenses Supplies expenses Electricity expenses Rent expenses Interest expenses Total

June,30th,20xx DEBIT(RS) CREDIT(RS) 40000 2400 27400 63850 11000 25000 9800 450 60000 48600 16500 1410 450 2500 340 154850 154850

Please note the order =Assets,Liabilities,Equity, revenue and expenses