By Y P Singh
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Additional resources for Accounting and Financial Management for I. T. Professionals
To Advance from Mohan A/c (being goods supplied to Mohan against advance) 5,000 Mohan A/c …Dr. Advance from Mohan A/c …Dr. —— dated ———) 10,000 …Dr. No. F. ) 2,000 2,000 Cash A/c …Dr To Capital A/c (being Interest on advance payment of income tax received) 1,000 Purchase A/c …Dr Cartage A/c …Dr To Cash A/c (being received a VPP (Value Paid 1,000 100 1,000 1,100 Parcel) for goods worth Rs. 1000) Practical System of Journalisation of Financial Transactions/Events: In actual practice, journalisation does not mean recording of transactions in chronological order using only one format of journal entry as shown in illustration 3 above.
16. 17. 18. 19. 20. 21. 22. Invoice received from Shyam Rs. 5000. Goods returned to Shyam or Shyam admitted claim for Rs. 900. Invoice sent to Shyam ——Rs. 2000. Goods returned by Shyam or Shyam’s claim admitted Rs. 200. Outstanding salary or salary owing Rs. 2500. Prepaid Insurance or unexpired insurance or insurance paid in advance Rs. 1500. Amount withdrawn by proprietor for personal/domestic/private use Rs. 2000. Goods taken by proprietor for personal/domestic/private use Rs. 1000. Goods given as charity Rs.
Increase) Dr. (Increase) Expense Dr. (Increase) Cr. (Decrease) Income Cr. (Decrease) Dr. (Decrease) Cr. g. cash memo shows cash sale, invoice/bill shows credit sale/purchase, debit note shows goods returned, report of store manager regarding closing stock etc. e. journal entry. Step 2: Recording of transactions/events (Journals) Recording of transaction is done through source documents. Journal is a primary book of accounting. It contains chronological record of transactions. Given below are rules for journal entry followed by some illustrations of journal entries.
Accounting and Financial Management for I. T. Professionals by Y P Singh