Practice Sheet-11 - Debit and Credit Ledger Account selection with Journal Entry

Practice Sheet - 11 of 12 (Transactions for the month of Feb' 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 February' 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 : 01/02/2022 (Transaction No. 204)

Amount withdrawn by proprietor for ₹7,500/- towards his personal expenses.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 from business.

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

Date : 01/02/2022 (Transaction No. 205)

Amount paid towards Salary for ₹10,000/- vide Chq No-700118 for the month of Jan’ 2022 from Axis Bank Current A/c.

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 : 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 Salary to employee.

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

Date : 01/02/2022 (Transaction No. 206)

Amount paid to Mr. Rakesh Das for ₹4,000/- towards Rent for the month of Jan’ 2022.

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.

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

Date : 01/02/2022 (Transaction No. 207)

Amount paid to Lotus Stationery Shop towards office stationery for ₹126/- as per CM No-947.

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.

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

Date : 01/02/2022 (Transaction No. 208)

Amount paid to Mother Teresa Charitable Trust for ₹2,300/- towards donation as per Money Receipt No-510.

Debit Ledger : Donation A/c

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

  • In Modern Approach - Donation 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 Donation.

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

Date : 01/02/2022 (Transaction No. 209)

Amount paid towards purchase of broom for ₹120/-.

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.

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

Date : 01/02/2022 (Transaction No. 210)

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 : 01/02/2022 (Transaction No. 211)

Amount paid towards petrol for vehicle for ₹175/-.

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 : 01/02/2022 (Transaction No. 212)

Goods sold to Ambica Agency, Odisha for ₹21,240/- as per Invoice No-15

Item/Product/Taxable Value ₹18,000 CGST ₹1,620 and SGST ₹1,620

Total Invoice Value is ₹21,240/-(i.e Taxable Value ₹18,000 + CGST ₹1,620 + SGST ₹1,620).

See the Invoice details below.

Project Practice Sheet 11 - Sales Invoice No.15 - Ambica Agency.

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 Asset Account - Increase.

Credit Ledgers are :

  1. Sales A/c

  2. CGST A/c

  3. SGST A/c

  • In Traditional Approach :

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

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

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

  • In Modern Approach :

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

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

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

Journal Entry

Journal Entry for Credit Sale of Goods

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

Date : 02/02/2022 (Transaction No. 213)

Amount paid to Lily Book Store as per CM No-2865 towards purchase of office stationery for ₹253/-.

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.

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

Date : 02/02/2022 (Transaction No. 214)

Amount paid to CESU towards electric bill for ₹510/- for the month of Jan’ 2022.

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.

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

Date : 02/02/2022 (Transaction No. 215)

Amount paid to BSNL towards telephone bill for the month of Jan’ 2022 for ₹640/-.

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

Journal Entry for payment towards Telephone Expenses.

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

Date : 02/02/2022 (Transaction No. 216)

Amount paid towards petrol for vehicle for ₹170/-.

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 : 02/02/2022 (Transaction No. 217)

Goods purchased from SPN Electrical Pvt. Ltd, Maharastra for ₹5,98,700/- as per Invoice No-3000001230.

Item/Product/Taxable Value ₹5,11,400/-, IGST ₹87,300.

Total Invoice Value is ₹5,98,700(i.e Taxable Value ₹5,11,400 + IGST ₹87,300).

See the Invoice details below.

Project Practice Sheet 11 - SPN Electrical Pvt.Ltd. - Invoice No.3000001230

Debit Ledgers are :

  1. Purchases A/c

  2. 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 : SPN Electrical Pvt. Ltd, Maharastra A/c

  • In Traditional Approach - SPN Electrical Pvt. Ltd, Maharastra A/c is under Personal Account - Giver.

  • In Modern Approach - SPN Electrical Pvt. Ltd, Maharastra A/c is under Liability Account - Increases.

Journal Entry

Journal Entry for Credit purchase of Trading Goods.

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

Date : 02/02/2022 (Transaction No. 218)

Amount paid to ABC Roadways vide Chq No-700119 for ₹4,986/- from Axis Bank Current A/c 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

Journal Entry for payment towards Carriage & Freight Expenses.

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

Date : 02/02/2022 (Transaction No. 219)

Goods purchased from SPN Electrical Pvt. Ltd, Maharastra for ₹7,31,110/- as per Invoice No-3000001235.

Item/Product/Taxable Value ₹5,89,500/-, IGST ₹1,41,610.

Total Invoice Value is ₹7,31,110(i.e Taxable Value ₹5,89,500 + IGST ₹1,41,610).

See the Invoice details below.

Project Practice Sheet 11 - SPN Electrical Pvt.Ltd. - Invoice No.3000001235

Debit Ledgers are :

  1. Purchases A/c

  2. 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 : SPN Electrical Pvt. Ltd, Maharastra A/c

  • In Traditional Approach - SPN Electrical Pvt. Ltd, Maharastra A/c is under Personal Account - Giver.

  • In Modern Approach - SPN Electrical Pvt. Ltd, Maharastra A/c is under Liability Account - Increases.

Journal Entry

Journal Entry for Credit purchase of Trading Goods.

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

Date : 02/02/2022 (Transaction No. 220)

Amount paid to ABC Roadways vide Chq No-700120 for ₹5,895/- from Axis Bank Current A/c 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

Journal Entry for payment towards Carriage & Freight Expenses.

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

Date : 02/02/2022 (Transaction No. 221)

Goods sold to Radhakrishna Enterprises, Odisha for ₹2,08,671.60 as per Invoice No-16.

Item/Product/Taxable Value ₹1,69,620/-, CGST ₹19,525.80 and SGST ₹19,525.80

Total Invoice Value is ₹2,08,671.60(i.e Taxable Value ₹1,69,620 + CGST ₹19,525.80 + SGST ₹19,525.80).

See the Invoice details below.

Project Practice Sheet 11 - Sales Invoice No.16 - Radhakrishna Enterprises.

Debit Ledger : Radhakrishna Enterprises,Odisha A/c

  • In Traditional Approach :

Radhakrishna Enterprises,Odisha A/c is under type Personal Account - Receiver.

  • In Modern Approach :

Radhakrishna Enterprises,Odisha A/c is under type Asset Account - Increase.

Credit Ledgers are :

  1. Sales A/c

  2. CGST A/c

  3. SGST A/c

  • In Traditional Approach :

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

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

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

  • In Modern Approach :

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

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

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

Journal Entry

Journal Entry for Credit Sale of Trading Goods.

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


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Related Articles :

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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