pls explain how to do a journal entry with an example!
ALL THE INCOME GAIN ARE DEBITED
ALL THE LOSSES DRAWINGS ARE CREDITED
example: august 2, 2005 opened bank account with H.D.F.C 50,000
date patriculars L.F debit credit
2.8.2005 bank a/c dr. 50,000
to cash a/c 50,000
(being an bank a/c opened with HDFC)
here,bank is a sort of expense & what goes out is cash rs 50,000 to bank.
remember always same rules does'nt apply for everytime.
if the transaction given is purchased goods for Rs2000
the journal entry wud be
purchases a/c.................dr 2000
to cash 2000
purchases cums in d debit becoz its goods dats is comin in
&cash cums in credit becoz cash is wat goes out
u have to apply d accounting principles & do it
commenced a business with cash of rs.90000
cash dr. 90000
To capital a/c cr. 90000
Started Business with cash Rs .5000000000000
if the transaction given is started business with cash Rs 50000
the journal entry wed be
to capital a/c..........cr.50000
(being started business with cash)
well a journal entry is easy.. u have to frst shud b aware of the accountancy's golden rule about debit n credit n its various rules of recognition of nature of any account type so as to solve ur answer...
u need to den make a table wid 4 columns including ((date/ particulars /debit amount in rs /credit amnt in rs.))
fill d date
den see d transaction
den tell wats being debited to what
and so on n strt filling it.. but the best way possible is go see you book.. it has evrything..!!! :)