The Basic Journal Based On Modern Rules of Debit & Credit.


Modern Rules of Debit & Credit

Particular

Balance

Increase

Decrease

Drawings
&
Dividend

Debit

Debit

credit

Expenses

Debit

Debit

credit

Asset

Debit

Debit

credit

Liability

Credit

Credit

Debit

Equity

Credit

Credit

Debit

Revenue

Credit

Credit

Debit







Example Basic journal of modern rules.

1.capital Received Form Mr. X ₹ 1000000 as Cheque

2. Cash Withdraw from Bank ₹ 100000

3.purchase Machinery from TATA PVT Ltd ₹ 200000

4. Raw Materials Purchased From KKR & LTD ₹ 100000

5. Cheque Issued to TATA Ltd ₹ 200000

6.sales to Kavin ₹ 80000

7.cash Sales to Raguvaran ₹ 30000 Discount Allowed 10%

8. water Charges paid Cash ₹ 9500.

9.EB Charges Paid Cash ₹9800

10. Bank Loan Received ₹ 1000000

11. Processing charges ₹10000 (1%)

12. purchase goods for Production from Raguman & CO ₹ 300000

13. sales to Ravinthar ₹280000

14. Bank interest paid ₹ 41666 and principal amount paid to bank ₹9827.

15.investment in TATA steel ₹100000

16. Salary paid ₹80000

17. Cash deposit into Bank ₹50000

18. stationery purchased in cash ₹3000

19. insurance paid to Chola insurance₹ 100000

20. Amount Paid to Chola Insurance ₹100000.

S.No

Particular

Debit

Credit

Debit/Credit Balance

1

capital Received Form Mr. X ₹ 1000000 as Cheque

Bank A/C

₹1000000

Asset Increase

       TO Capital A/C

₹1000000

Liability increase

Capital Received From MR.X

2

Cash Withdraw from Bank ₹ 100000

Cash A/C

₹100000

Asset Increase

      To Bank A/C

₹100000

Asset Decrease

Cash Withdraw from

3

purchase Machinery from TATA PVT Ltd     ₹ 200000

MachineryA/C

₹200000

Asset Increase

      To TATA PVT Ltd

₹200000

Liability increase

purchase Machinery from TATA PVT Ltd

4

Raw Materials Purchased From KKR & LTD ₹ 100000

Purchase A/C

₹100000

Expenses Increase

       To KKR & LTD

₹100000

Liability increase

Raw Materials Purchased From KKR & LTD

5

Cheque Issued to TATA PVT Ltd ₹ 200000

TATA PVT Ltd A/C

₹200000

Liability Decrease

      To Bank A/C

₹200000

Asset Decrease

Cheque Issued to TATA PVT Ltd

6.

sales to Kavin ₹ 80000

Kavin A/C

₹80000

Asset Increase

      To Sales A/C

₹80000

Revenue increase

sales to Kavin

7

cash Sales to Raguvaran ₹ 30000 Discount Allowed 10%

Cash A/C

₹27000

Asset Increase

Discount A/C

₹3000

Expenses Increase

     To Sales A/C

₹30000

Revenue increase

cash Sales to Raguvaran ₹ 30000 Discount Allowed 10%

8

Water charges paid In Cash ₹ 9500.

Water Charges A/C

₹9500

Expenses Increase

      To Cash A/C

₹9500

Asset Decrease

Water charges paid In Cash

9

EB Charges Paid Cash ₹9800

EB Charges A/C

₹9800

Expenses Increase

      To Cash A/c

₹9800

Asset Decrease

EB Charges Paid in Cash

10

Bank Loan Received ₹ 1000000

Bank A/C

₹1000000

Asset Increase

      To Bank Loan A/C

₹1000000

Liability increase

Bank Loan Received

11

Processing charges ₹10000 (1%)

Bank Charges A/C

₹10000

Expenses Increase

     To bank A/C

₹10000

Asset Decrease

Processing charges Paid

12

purchase goods for Production from Raguman & CO ₹ 300000

Purchase A/C

₹300000

Expenses Increase

     To Raguman & Co

₹300000

Liability increase

purchase goods for Production from Raguman & CO

13

sales to Ravinthar ₹280000

Ravinthar A/C

₹280000

Asset Increase

     To Sales A/C

₹280000

Revenue increase

sales to Ravinthar

14

Bank interest paid ₹ 41666 and principal amount paid to bank ₹9827 - 1st Instalment

Interest A/C

₹41666

Expenses Increase

Bank Loan A/C

₹9827

Liability Decrease

      To Bank A/C

₹51493

Asset Decrease

Bank interest paid ₹ 41666 and principal amount paid to bank ₹9827 - 1st Instalment

15

investment in TATA steel ₹100000

Investment A/C

₹100000

Asset Increase

       To Bank A/C

₹100000

Asset Decrease

investment in TATA steel ₹100000

16

Salary paid ₹80000

Salary A/C

₹800000

Expenses Increase

       To Bank A/C

₹800000

Asset Decrease

Salary paid ₹80000

17

Cash deposit into Bank ₹50000

Bank A/C

₹50000

Asset Increase

     To Cash A/C

Asset Decrease

Cash deposit into Bank

18

stationery purchased in cash ₹3000

Stationery A/C

₹3000

Expenses Increase

     To Cash A/C

₹3000

Asset Decrease

stationery purchased

19

insurance paid to Chola insurance₹ 100000

Insurance A/C

₹100000

Expenses Increase

     To Chola Insurance A/C

₹100000

Liability increase

20

Amount Paid to Chola Insurance ₹100000.

Chola Insurance A/C

₹100000

Liability Decrease

    To Bank A/C

₹100000

Asset Decrease

Amount Paid to Chola Insurance ₹100000.

  

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