Types of Transaction Effects on Transaction Journal Entries Narration

The goods stolen Lost by theft a/c & Lost by theft a/c......Dr. Being goods costing
Purchase a/c To purchase a/c Rs...........stolen
Goods destroyed by fire
* If the goods are not Lost by fire a/c & Purchase Lost by fire a/c........Dr. Being goods costing
insured a/c To purchase a/c Rs.....destroyed by fire

*If the are insured & Cash a/c , Loss by fire a/c Cash a/c........Dr. Being goods costing
Insured Company paid & Purchase a/c Loss by fire a/c......Dr. Rs.....destroyed by fire and
proportinate claim in Cash To Purchase a/c claim of Rs....... accepted
by the insurance company
Bad debts ( debtor Bad debts a/c & Debtors Bad debts a/c......Dr. Being amount of bad debts
becoming insolvent) a/c To debtors a/c written off
Bad debts ( An amount Cash a/c, Bad debts a/c & Cash a/c.........Dr. Being amount of Bad debts
due from a debtor may Debtors a/c Bad debts a/c....Dr. written
become irrecoverable To debtor a/c off............recovered
partially
Bad debts recovered Cash a/c & Bad Debts Cash a/c.......Dr. Being cash received from
recovered a/c To Bad debts the bad debts written off
recovered a/c previously
The payment/ receiption Name of person & org. & Name of person & org. a/c...Dr Being..... on behalf of
on behalf of customer Cash a/c To Cash a/c Name of/ Organization
/supplier
Depreciation charge on Depreciation a/c & Fixed Depreciation a/c.....Dr. Being depreciation is
Cash a/c To fixed assets a/c charged on fixed assets
Trade discount Person/Org a/c & Sales a/c Person/Org a/c.....Dr. Being goods sold.......at
To Sales a/c Trade discount
Cash discount (full Cash a/c, Discount allowed Cash a/c..........Dr. Beind cash ...........allowing
settlement) a/c & Person/Org a/c Discount a/c......Dr. discount
To person/Org a/c
Appreciation on fixed Fixed assets & Fixed assets a/c.......Dr. Being appreciation of land
assets Appreciation a/c To appreciation {By
(given)Percentage .........
The case of profit or loss
on sale of Assets
*In case of loss Cash a/c & Loss sale of Cash a/c.......Dr. Being sale of asset on loss
asset on loss To Loss.....on loss
Being sale of aaset on
*In case of profit Cash a/c ,Asset a/c & Cash a/c......Dr. Profit
profit on sale of asset To Asset a/c
To profit on.....asset
Outstanding Expenses Expenses a/c & Expenses a/c......Dr. Being Outatnding........
Outstanding a/c To Outstanding a/c
Income accurued Accrued ....a/c & Accrued....a/c......Dr. Being.......but not received
....Received a/c To......Received a/c
Interest on Capital Interest on Capital & Capital Interest on capital a/c....Dr. Being interest allowed to
a/c To capital a/c Capital

Dipendra Giri B2 (Smile please)