Practice Sheet-8 - Debit and Credit Ledger Account selection with Journal Entry

Practice Sheet - 8 of 12 (Transactions for the month of Nov' 2021) 

Students/learners can get benefit and complete knowledge on this Practical Project after completion of all the 12 Practice Sheets with a proper sequence.

Let's Practice the below mentioned transactions with Journal Entry for the month of November' 2021 of Trimurthy Traders(Prop : Surya Krishnamurthy).

TRIMURTHY TRADERS

(Prop : Mr. Surya Krishnamurthy) 

Financial Year : 2021-22(April' 2021 to March' 2022)

Assessment Year : 2022-23(April' 2022 to March' 2023)

Date : 01/11/2021 (Transaction No. 137)

₹6,000/- paid to proprietor towards his personal expenses.

Debit Ledger : Drawings A/c

  • In Traditional Approach - Drawings A/c is under type Personal Account - Receiver.

(Note : Drawings Account is considered as Personal Account because in Proprietorship Firm Accounting 'Drawings Account' is a sub-ledger of Capital Account).

  • In Modern Approach - Drawings A/c is under type Capital Account - decreases.

Credit Ledger : Cash A/c

  • In Traditional Approach - Cash A/c is under Real Account - Goes Out.

  • In Modern Approach - Cash A/c is under Asset Account - decreases.

Journal Entry

Journal Entry for Cash Drawings by the Proprietor towards personal expenses.

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Date : 01/11/2021(Transaction No. 138)

Opened Fixed Deposit Account with Axis Bank by transfer from Axis Bank Current A/c for ₹2,00,000/- with ROI 9% p.a for 3 year.

Debit Ledger : Fixed Deposit with Axis Bank A/c

  • In Traditional Approach - Fixed Deposit with Axis Bank A/c is under type Real Account -Comes In

  • In Modern Approach - Fixed Deposit with Axis Bank A/c is under type Asset Account - Increases.

Credit Ledger : Axis Bank Current A/c

  • In Traditional Approach - Axis Bank Current A/c is under type Real Account - Goes Out.

  • In Modern Approach - Axis Bank Current A/c is under type Asset Account - decreases.

Journal Entry

Journal Entry for payment towards opening of Fixed Deposit Account.

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Date : 01/11/2021 (Transaction No. 139)

Amount paid towards salary for the month of Oct’ 2021 for ₹10,000/-.

Debit Ledger : Salary A/c

  • In Traditional Approach - Salary A/c is under type Nominal Account - Expense.

  • In Modern Approach - Salary A/c is under type Expense Account - Increases.

Credit Ledger : Cash A/c

  • In Traditional Approach - Cash A/c is under type Real Account - Goes Out.

  • In Modern Approach - Cash A/c is under type Asset Account - decreases.

Journal Entry

Journal Entry for payment towards Salary to Employee.

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Date : 01/11/2021 (Transaction No. 140)

Amount paid towards staff food expenses for ₹4,600/-.

Debit Ledger : Staff Food Expenses A/c

  • In Traditional Approach - Staff Food Expenses A/c is under type Nominal Account - Expense.

  • In Modern Approach - Staff Food Expenses A/c is under type Expense Account - Increases.

Credit Ledger : Cash A/c

  • In Traditional Approach - Cash A/c is under Real Account - Goes Out.

  • In Modern Approach - Cash A/c is under Asset Account - decreases.

Journal Entry

Journal Entry for payment towards Staff Food Expenses.

Click here to know how to enter the above Payment Voucher in TallyPrime.

Date : 01/11/2021 (Transaction No. 141)

Amount paid towards petrol for vehicle for ₹120/-.

Debit Ledger : Vehicle Maintenance A/c

  • In Traditional Approach - Vehicle Maintenance A/c is under type Nominal Account - Expense.

  • In Modern Approach - Vehicle Maintenance A/c is under type Expense Account - Increases.

Credit Ledger : Cash A/c

  • In Traditional Approach - Cash A/c is under Real Account - Goes Out.

  • In Modern Approach - Cash A/c is under Asset Account - decreases.

Journal Entry

Journal Entry for payment towards Vehicle Maintenance Expenses.

Click here to know how to enter the above Payment Voucher in TallyPrime.

Date : 02/11/2021 (Transaction No. 142)

Amount paid to Mr. Rakesh Das towards Rent for ₹4,000/- for the month of Oct’ 2021.

Debit Ledger : Rent A/c

  • In Traditional Approach - Rent A/c is under type Nominal Account - Expense.

  • In Modern Approach - Rent A/c is under type Expense Account - Increases.

Credit Ledger : Cash A/c

  • In Traditional Approach - Cash A/c is under Real Account - Goes Out.

  • In Modern Approach - Cash A/c is under Asset Account - decreases.

Journal Entry

Journal Entry for payment towards Rent.

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Date : 02/11/2021 (Transaction No. 143)

Amount paid to Lotus Stationery Shop towards office stationery for ₹720/- as per CM No-517.

Debit Ledger : Printing & Stationery A/c

  • In Traditional Approach - Printing & Stationery A/c is under type Nominal Account - Expense.

  • In Modern Approach - Printing & Stationery A/c is under type Expense Account - Increases.

Credit Ledger : Cash A/c

  • In Traditional Approach - Cash A/c is under type Real Account - Goes Out.

  • In Modern Approach - Cash A/c is under type Asset Account - decreases.

Journal Entry

Journal Entry for payment towards Printing & Stationery Expenses.

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Date : 02/11/2021 (Transaction No. 144)

₹425/- paid to CESU towards electric bill for the month of Oct’ 2021.

Debit Ledger : Electricity Charges A/c

  • In Traditional Approach - Electricity Charges A/c is under type Nominal Account - Expense.

  • In Modern Approach - Electricity Charges A/c is under type Expense Account - Increases.

Credit Ledger : Cash A/c

  • In Traditional Approach - Cash A/c is under type Real Account - Goes Out.

  • In Modern Approach - Cash A/c is under type Asset Account - decreases.

Journal Entry

Journal Entry for payment towards Electricity Charges.

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Date : 02/11/2021 (Transaction No. 145)

₹1710/- paid towards sales promotion meeting expenses.

Debit Ledger : Sales Promotion A/c

  • In Traditional Approach - Sales Promotion A/c is under type Nominal Account - Expense.

  • In Modern Approach - Sales Promotion A/c is under type Expense Account - Increases.

Credit Ledger : Cash A/c

  • In Traditional Approach - Cash A/c is under Real Account - Goes Out.

  • In Modern Approach - Cash A/c is under Asset Account - decreases.

Journal Entry

Journal Entry for payment towards Sales Promotion Expenses.

Click here to know how to enter the above Payment Voucher in TallyPrime.

Date : 02/11/2021 (Transaction No. 146)

Amount paid for ₹452/- towards soap and phenyle expenses for office cleaning.

Debit Ledger : Miscellaneous Expenses A/c

  • In Traditional Approach - Miscellaneous Expenses A/c is under type Nominal Account - Expense.

  • In Modern Approach - Miscellaneous Expenses A/c is under type Expense Account - Increases.

Credit Ledger : Cash A/c

  • In Traditional Approach - Cash A/c is under Real Account - Goes Out.

  • In Modern Approach - Cash A/c is under Asset Account - decreases.

Journal Entry

Journal Entry for payment towards Miscellaneous Expenses.

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Date : 02/11/2021 (Transaction No. 147)

Amount paid towards petrol for vehicle for ₹155/-.

Debit Ledger : Vehicle Maintenance A/c

  • In Traditional Approach - Vehicle Maintenance A/c is under type Nominal Account - Expense.

  • In Modern Approach - Vehicle Maintenance A/c is under type Expense Account - Increases.

Credit Ledger : Cash A/c

  • In Traditional Approach - Cash A/c is under Real Account - Goes Out.

  • In Modern Approach - Cash A/c is under Asset Account - decreases.

Journal Entry

Journal Entry for payment towards Vehicle Maintenance Expenses.

Click here to know how to enter the above Payment Voucher in TallyPrime.

Date : 02/11/2021 (Transaction No. 148)

Goods purchased from Sagar Traders, Odisha for ₹4,41,054.50 as per Invoice No-KA/1275.

Item/Product/Taxable Value ₹3,73,775/-, CGST ₹33,639.75 and SGST ₹33,639.75

Total Invoice Value is ₹4,41,054.50(i.e Taxable Value ₹3,73,775 + CGST ₹33,639.75 + SGST ₹33,639.75).

See the Invoice details below.

Project Practice Sheet 8 - Sagar Traders - Invoice No.1275

Debit Ledgers are :

  1. Purchases A/c

  2. CGST A/c

  3. SGST A/c

  • In Traditional Approach :

Purchases A/c is under type Nominal Account - Expense.

CGST A/c is under type Personal Account - Receiver.

SGST A/c is under type Personal Account - Receiver.

  • In Modern Approach :

Purchases A/c is under type Asset Account - Increase.

CGST A/c is under type Asset Account - Increase.

SGST A/c is under type Asset Account - Increase.

Credit Ledger : Sagar Traders,Odisha A/c

  • In Traditional Approach - Sagar Traders,Odisha A/c is under Personal Account - Giver.

  • In Modern Approach - Sagar Traders,Odisha A/c is under Liability Account - Increases.

Journal Entry

Journal Entry for goods purchased on Credit.

Click here to know how to enter the above Purchase Voucher in TallyPrime.

Date : 02/11/2021 (Transaction No. 149)

Amount paid to ABC Roadways vide Chq No-700112 for ₹3,738/- from Axis Bank Current A/c towards transportation charges for above purchase.

Debit Ledger : Carriage & Freight A/c

  • In Traditional Approach - Carriage & Freight A/c is under type Nominal Account - Expense.

  • In Modern Approach - Carriage & Freight A/c is under type Expense Account - Increases.

Credit Ledger : Axis Bank Current A/c

  • In Traditional Approach - Axis Bank Current A/c is under Real Account - Goes Out.

  • In Modern Approach - Axis Bank Current A/c is under Asset Account - decreases.

Journal Entry

Journal Entry for payment towards Carriage & Freight Expenses.

Click here to know how to enter the above Payment Voucher in TallyPrime.

Date : 02/11/2021 (Transaction No. 150)

Amount paid from Axis Bank Current A/c for ₹575/- towards ITDS(Income Tax Deducted at Source) vide e-challan No-CN012345.

Debit Ledger : ITDS A/c

  • In Traditional Approach - ITDS A/c is under type Personal Account - Receiver.

  • In Modern Approach - ITDS A/c is under type Liability Account - decreases.

Credit Ledger : Axis Bank Current A/c

  • In Traditional Approach - Axis Bank Current A/c is under Real Account - Goes Out.

  • In Modern Approach - Axis Bank Current A/c is under Asset Account - decreases.

Journal Entry

Journal Entry for payment towards Income Tax Deducted at Source.

 Click here to know how to enter the above Payment Voucher in TallyPrime.

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Types of Account

Debit and Credit Rule

Double Entry System of Book Keeping

Journal 

Ledger 

Trial Balance

Trading and Profit & Loss Account

Balance Sheet

Bank Reconciliation Statement

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