Practice Sheet-10 - Debit and Credit Ledger Account selection with Journal Entry

Practice Sheet - 10 of 12 (Transactions for the month of Jan' 2022)

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 January' 2022 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 : 01/01/2022 (Transaction No. 180)

Amount withdrawn by proprietor towards personal expenses for ₹6,000/-.

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

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Date : 01/01/2022 (Transaction No. 181)

Amount paid to Lotus Stationery Shop towards office stationery for ₹145/- as per CM No-828.

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

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Date : 01/01/2022 (Transaction No. 182)

Amount paid to CESU towards electric bill for the month of Dec’ 2021 for ₹413/-.

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

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Date : 01/01/2022 (Transaction No. 183)

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

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Date : 01/01/2022 (Transaction No. 184)

Amount paid towards petrol for vehicle for ₹160/-.

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

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Date : 01/01/2022 (Transaction No. 185)

Goods purchased from J.N. Engineers Ltd, Punjab for ₹2,05,627.80 as per Invoice No-AB/20001345.

Item/Product/Taxable Value ₹1,80,210/-, IGST ₹25,417.80

Total Invoice Value is ₹2,05,627.80(i.e Taxable Value ₹1,80,210 + IGST ₹25,417.80).

See the Invoice details below.

Project Practice Sheet 10 - JN Engineers Ltd. - Invoice No.20001345

Debit Ledgers are :

Purchases A/c
IGST A/c

In Traditional Approach :

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

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

In Modern Approach :

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

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

Credit Ledger : JN Engineers Ltd, Punjab A/c

In Traditional Approach - JN Engineers Ltd, Punjab A/c is under Personal Account - Giver.
In Modern Approach - JN Engineers Ltd, Punjab A/c is under Liability Account - Increases.

Journal Entry

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Date : 01/01/2022 (Transaction No. 186)

Amount paid to ABC Roadways for ₹1,802/- vide Chq No-700116 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

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Date : 02/01/2022 (Transaction No. 187)

Amount paid to Ambica Agency, Odisha for ₹4,89,475.80 through RTGS from Axis Bank Current A/c towards outstanding due.

Debit Ledger : Ambica Agency, Odisha A/c

In Traditional Approach - Ambica Agency, Odisha A/c is under type Personal Account - Receiver.
In Modern Approach - Ambica Agency, Odisha 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

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Date : 02/01/2022 (Transaction No. 188)

Paid ₹11,128.97 towards CGST and ₹11,128.97 towards SGST from Axis Bank Current A/c vide e-challan No-AX02351236 for the month of Dec’ 2021.

Debit Ledgers are :

CGST A/c
SGST A/c

In Traditional Approach :

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

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

In Modern Approach :

CGST A/c is under type Liability Account - decrease.

SGST A/c is under type Liability Account - decrease.

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

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Date : 02/01/2022 (Transaction No. 189)

Amount paid towards salary for the month of Dec’ 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

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Date : 02/01/2022 (Transaction No. 190)

Amount paid to Lotus Stationery Shop towards office stationery for ₹135/- as per CM No-899.

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

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Date : 02/01/2022 (Transaction No. 191)

Amount paid to BSNL for ₹650/- towards telephone bill for the month of Dec’ 2021.

Debit Ledger : Telephone Expenses A/c

In Traditional Approach - Telephone Expenses A/c is under type Nominal Account - Expense.
In Modern Approach - Telephone 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

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Date : 02/01/2022 (Transaction No. 192)

Amount paid to Mr. Ajit Patel for ₹850/- towards market visit.

Debit Ledger : Travelling Expenses A/c

In Traditional Approach - Travelling Expenses A/c is under type Nominal Account - Expense.
In Modern Approach - Travelling 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

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Date : 02/01/2022 (Transaction No. 193)

Amount paid to Bishnu Automobile as per CM No-3174 towards engine oil for vehicle for ₹265/-.

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

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Date : 02/01/2022 (Transaction No. 194)

Goods purchased from Sagar Traders, Odisha for ₹3,94,356/- as per Invoice No-KA/1493.

Item/Product/Taxable Value ₹3,34,200/-, CGST ₹30,078 and SGST ₹30,078

Total Invoice Value is ₹3,94,356/-(i.e Taxable Value ₹3,34,200 + CGST ₹30,078 + SGST ₹30,078).

See the Invoice details below.

Project Practice Sheet 10 - Sagar Traders - Invoice No.1493

Debit Ledgers are :

Purchases A/c
CGST A/c
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

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Date : 02/01/2022 (Transaction No. 195)

Amount paid to ABC Roadways vide Chq No-700117 of Axis Bank Current Account for ₹3,175/- towards transportation charges for the 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

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Date : 02/01/2022 (Transaction No. 196)

Amount received from Maa Electrical Pvt. Ltd, Odisha for ₹5,23,736.78 through RTGS to Axis Bank Current A/c towards outstanding due.

Debit Ledger : Axis Bank Current A/c

In Traditional Approach - Axis Bank Current A/c is under type Real Account - Comes in.
In Modern Approach - Axis Bank Current A/c is under type Asset Account - Increases.

Credit Ledger : Maa Electricals Pvt.Ltd,Odisha A/c

In Traditional Approach - Maa Electricals Pvt.Ltd,Odisha A/c is under Personal Account - Giver.
In Modern Approach - Maa Electricals Pvt.Ltd,Odisha A/c is under Asset Account - Decreases.

Journal Entry

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Date : 02/01/2022 (Transaction No. 197)

Goods sold to Govind Electrical Traders, West Bengal for ₹80,232.24 as per Invoice No-13.

Item/Product/Taxable Value ₹69,348/-, IGST ₹10,884.24

Total Invoice Value is ₹80232.24(i.e Taxable Value ₹69,348 + IGST ₹10,884.24).

See the Invoice details below.

Project Practice Sheet 10 - Sales Invoice No.13 - Govind Electrical Traders

Debit Ledger : Govind Electrical Traders, West Bengal A/c

In Traditional Approach :

Govind Electrical Traders, West Bengal A/c is under type Personal Account - Receiver.

In Modern Approach :

Govind Electrical Traders, West Bengal A/c is under type Asset Account - Increase.

Credit Ledgers are :

Sales A/c
IGST A/c

In Traditional Approach :

Sales A/c is under type Nominal Account - Income.

IGST A/c is under type Personal Account - Giver.

In Modern Approach :

Sales A/c is under type Revenue Account - Increase.

IGST A/c is under type Liability Account - Increase.

Journal Entry

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Date : 31/01/2022 (Transaction No. 198)

Amount paid to Sagar Traders, Odisha for ₹3,74,296/- through RTGS from HDFC Bank(Cash Credit) A/c towards outstanding due.

Debit Ledger : Sagar Traders,Odisha A/c

In Traditional Approach - Sagar Traders,Odisha A/c is under type Personal Account - Receiver.
In Modern Approach - Sagar Traders,Odisha A/c is under type Liability Account - Decreases.

Credit Ledger : HDFC Bank (Cash Credit) A/c

In Traditional Approach - HDFC Bank (Cash Credit) A/c is under Real Account - Goes Out.
In Modern Approach - HDFC Bank (Cash Credit) A/c is under Liability Account - Increases.

Journal Entry

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Date : 31/01/2022 (Transaction No. 199)

Amount paid towards sales promotion for ₹945/-.

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

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Date : 31/01/2022 (Transaction No. 200)

Amount paid to Soumit Saha for ₹2,130/- towards market visit.

Debit Ledger : Travelling Expenses A/c

In Traditional Approach - Travelling Expenses A/c is under type Nominal Account - Expense.
In Modern Approach - Travelling 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

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Date : 31/01/2022 (Transaction No. 201)

₹214/- paid towards petrol for vehicle.

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