Important Accounting Journal Entry Rules And Journal Entry Questions Answer

 What Is Accounting ?

Important Accounting Journal Entry Rules And Journal Entry Questions, Answer 

Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing and reporting these transactions to oversight agencies, regulators and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company's operations, financial position and Cash Flow.

TYPE OF ACCOUNTING VOUCHERS OR ENTRIES IN TALLY HINDI AND ENGLISH DETAILS

    TYPES OF GST RETURNS ALL FORM DETAILS

HOW TO PREPARE FOR JOB INTERVIEW

                

Good & Service GST (India) - What is GST? - What is GST Form?

ACCOUNTING SYLLABUS WITH GST

Using Debit and Credit

If there is something that runs the world of accounting, it is the rules debit and credit. Without these rules, the world of accounting would be a haphazard mess. It is important that the accounts should be maintained properly on these rules, in order to ensure the accuracy of results displayed by such books of accounts. Let us study what a debit and credit are and how it works in accounts.

Debit And Credit In Accounting

Every Business Transactions which can be measured in monetary terms finds a place in the accounting transactions of a firm. In order to record such transaction, a system of debit and credit has been devised, which records events through two different accounts.

The following are the rules of debit and credit which guide the system of accounts, they are known as the golden rules of accountancy:

• First :  

                    Debit what comes in, Credit what goes out.

• Second :

           Debit all Expenses and losses, Credit all incomes and gains

• Third :

                 Debit The Receiver, Credit the giver.

1. A Debit entry increases asset and prepaid account balances while it decreases liability and equity account balances.
2. A Credit entry increases liability and owner's equity accounts and decreases asset and prepaid expense accounts.
3. We Debit all expenses and losses, and we credit all incomes and gains.

    Accounting Journal Entry Questions, Answer

  

On April 01,2020 Mohit started business with Rs. 100,000 and other transactions for the month are:

            Cash           Dr.              100,000     ............

                  To  Capital a/c           ............     100,000

            ( Being Started Business With Cash )

2. Purchase Furniture for Cash Rs. 8,000.

            Furniture a/c        Dr.          8,000      .........

             To Cash                             .........      8,000

           ( Being Purchase Furniture for Cash )
    

8. Purchase Goods for Cash Rs. 2,000 and for Krishna Brothers Credit Rs. 2,000.

            Purchase a/c        Dr.               4,000       ........

                To Cash                               .........      2,000

                To Krishna Brothers            .........      2,000

            ( Being Good On Cash And Credit )

14. Sold Goods to Narayn Trader's Rs. 12,000 and Cash Sales Rs. 5,000.

              Cash                       Dr.          5,000        ..........

              Narayn Trader's                   12,000        ..........

                  To Sales                            ..........       17,000   

              ( Being Cash And Credit Sales a/c )

                             

22.  Paid Krishna Brothers Rs. 2,000.

               Krishna Brothers   Dr.            2,000         ...........

                   To Cash                              ..........         2,000

               (Being amount paid of Krishna Brothers)

30.  Received Rs. 10,000 from Narayn Trader's.

                Cash                    Dr.               10,000       ..........

                    To Narayn Trader's              ..........       10,000

                ( Being Amount Received by Narayn Trader's) 

Next..........