Journal Entries
Journal Entry for Introduction of Capital as Assets
Introduction
In accounting "capital" refers to the assets or money that a business owner invests into his or her business for it to start or...
Journal Entry for Interest Paid on Loan
Introduction
Along with already existing owner's equity, new loans help businesses fund acquisitions, expand operations, buy assets, invest, refinance debt, and boost working capital. As...
Journal Entry to Place Money in Fixed Deposit
Introduction
A fixed deposit as the name suggests is a "deposit of money" with a bank or a similar financial institution that is "fixed" for...
Journal Entry for Opening Stock
Introduction
At the beginning of an accounting period, opening stock refers to the value of inventory available for sale. Raw materials, finished goods, and work...
Journal Entry for Cheques Dishonoured
Introduction
A cheque is a financial instrument that acts as a written order sent by the account holder to its bank instructing them to pay...
Journal Entry for Payment to Creditor
Introduction
Many businesses buy goods or services on credit as it allows the purchasing company to receive goods or services immediately and pay for them...
Journal Entry for Bank Charges Paid
Introduction
Generally, a business makes and receives payments through a bank account. It provides various services such as cheques, overdrafts, current accounts, loans, transfers, etc....
Journal Entry for Bank Overdrafts
Introduction
A bank is a financial institution that helps individuals and businesses with fund requirements & financial transactions. A bank overdraft is when account holder(s)...
Journal Entry for Cheque Received from Debtor
Introduction
In your business, a debtor is a party that owes money to you. Imagine you run a small stationery store. When someone comes into...
Journal Entry for Money Received from the Debtor
Introduction
In your business, a debtor is a person or another business that owes money to your firm. For example, let's say you have a...
Bought Goods for Cash Journal Entry
As a general accounting term, “Goods” refer to tangible products or merchandise that a business buys or manufactures for the purpose of selling to...
Sold Goods for Cash Journal Entry
As a general accounting term, "Sales" refers to the revenue generated by a business by selling products or services. This is the income generated...
Journal Entry for Amortization
Amortization Journal Entry for Intangible Assets
Example
Entry using Accumulated Amortization A/c
Example with Accumulated Amortization
Treatment in the Financial Statements
Journal Entry...
Journal Entry Examples
The journal book must record every business transaction, which means entries need to be made. In accounting lingo, this is called a journal entry....
Accounting and Journal Entry for Salary Paid
Journal Entry for Salary Paid
Salary is an indirect expense incurred by every organization with employees. It is paid as a consideration for the efforts...
Accounting and Journal Entry for Rent Received
Journal Entry for Rent Received
If a business owns a property that is not being used then it may decide to rent it out and...
Accounting and Journal Entry for Rent Paid
Paid Rent Journal Entry
If a business does not own an office premise it may decide to hire a property and make periodical payments as...
Accounting and Journal Entry for Advance Received from a Customer
Journal Entry for Advance Received from a Customer
In certain types of business transactions, it is a requirement for the customer to pay a part...
Accounting and Journal Entry for Sales Returns
Journal Entry for Sales Returns or Return Inwards
Sometimes due to various reasons goods sold by a company may be returned by the respective buyer(s)....
Accounting and Journal Entry for Purchase Returns
Journal Entry for Purchase Returns or Return Outwards
Sometimes goods purchased by a business are unfit for use and may need to be returned to...
Accounting and Journal Entry for Director’s Remuneration
Journal Entry for Director's Remuneration
The word "Remuneration" means any money or its equivalent paid to someone in exchange for using their services. Any such...
What is the Journal Entry for Bad Debts?
Bad Debts Journal Entry
Example
Bad Debts Adjustment in Final Accounts
Bad Debt Recovery Journal Entry
Provision for Bad Debts Journal Entry
Practice
...
Accounting and Journal Entry for Loan Payment
Journal Entry for Loan Payment (Principal & Interest)
Loans are a common means of seeking additional capital by the companies. They can be obtained from...
Accounting and Journal Entry for Loan Taken From a Bank
Journal Entry for Loan Taken From a Bank
Banks and NBFCs are an integral part of an economy as they act as a support for...
What is the Journal Entry for Carriage Outwards?
Journal Entry for Carriage Outwards
Carriage outwards is essentially the delivery expense related to selling of goods. Usually it is an expense for the seller...
What is the Journal Entry for Carriage Inwards?
Journal Entry for Carriage Inwards
Carriage inwards is the freight and carrying cost incurred by a business while acquiring a new product. Journal entry for carriage...
Accounting and Journal Entry for Closing Stock
Closing Stock
Goods that remain unsold at the end of an accounting period are known as closing stock. They are valued at the end of...
Accounting and Journal Entry for Income Tax
Journal Entry for Income Tax
Income tax is a form of tax levied by the government on the income generated by a business or person....
Accounting and Journal Entry for Manager’s Commission
Journal Entry for Manager's Commission
In addition to salaries, companies may offer a fixed percentage of their net profit to managers as commission. This is...
What is the Journal Entry for Credit Purchase and Cash Purchase?
Journal Entry for Credit Purchase and Cash Purchase
To run successful operations a business needs to purchase raw material and manage its stock optimally throughout...
What is the Journal Entry for Credit Sales and Cash Sales?
Journal Entry for Credit Sales and Cash Sales
Sales are a part of everyday business, they can either be made in cash or credit. In...
Accounting and Journal Entry for Bill of Exchange
Journal Entry for Bill of Exchange
Bill of exchange is an instrument in writing signed by the maker which contains an order without any conditions....
Accounting and Journal Entry For Provident Fund
Journal Entry For Provident Fund (PF)
Provident fund or PF is a compulsory retirement savings plan managed by the government where employees contribute a fixed...
What is the Journal Entry for Interest on Drawings?
Accounting and Journal Entry for Interest on Drawings
Cash or Goods withdrawn by a proprietor from the business for their personal use is labelled as drawings. Interest...
What is the Journal Entry for Interest on Capital?
Accounting and Journal Entry for Interest on Capital
Owners may seek a return on investment in the form of a fixed rate of interest to...
Accounting and Journal Entry for Credit Card Sales
Journal Entry for Credit Card Sales
Digitization and modernization have made credit cards a very common mode of payment. Credit cards allow customers to shop...
What is a Reclass Entry?
Reclass Entry
Accounting for business also means being responsible for adjustments and corrections. One such adjustment entry is 'reclass' or reclassification journal entry. The process...
What is a True-up Entry?
True-up Entry Concept in Accounting
In its most generic form a true-up means to match, reconcile, tie-out two or more balances with the help of...
What is the Journal Entry for Recovery of Bad Debts?
Journal Entry for Recovery of Bad Debts
At times a debtor whose account had earlier been written off by a creditor as a bad debt...
What are Rectification Entries?
Rectification Entries, With Examples
When an error is committed in the books of accounts the same should be corrected to show true numbers in financial...
What are Closing Entries?
Closing Entries, With Examples
At the end of an accounting period when the books of accounts are at finalization stage, some special journal entries are...
What is the Journal Entry for Cash Discount?
Journal Entry for Cash Discount
100 keyboards are sold for the invoice price of 300 each with payment terms 1/10, Net 30 days. Journal entry...
What is the Journal Entry for Loss on Sale of Fixed Assets?
Journal Entry for Loss on Sale of Fixed Assets
Nowadays, businesses sell their assets as part of strategic decision-making. Reasons could vary from up-gradation to...
What is the Journal Entry for Discount Received?
Discount Received
Discounts are common in both B2B and B2C transactions to push both credit and cash sales, they are usually given in lieu of...
What is the Journal Entry for Profit on Sale of Fixed Assets?
Journal Entry for Profit on Sale of Fixed Assets
Nowadays, businesses sell their assets as part of strategic decision-making. Sale of an asset may be...
What is the Journal Entry for Discount Allowed?
Discount Allowed
Discounts are very common in today's business world, they are generally provided in lieu of some consideration which can range from timely payments...
What is the Journal Entry for Depreciation?
Overview
Depreciation Journal Entry
When charged directly to the asset
When provision for depreciation or accumulated depreciation is maintained
Example & Steps
Journal...
What is the Journal Entry for Income Received in Advance?
Journal Entry for Income Received in Advance
Also known as unearned income, it is income which is received in advance, however, the related benefits are...
What is the Journal Entry for Accrued Income?
Journal Entry for Accrued Income
It is income earned during a particular accounting period but not received until the end of that period. It is treated as an...
What is the Journal Entry for Prepaid Expenses?
Journal Entry for Prepaid Expenses
Prepaid expenses are those expenses which are paid in advance for a benefit yet to be received. The perks of...
What is the Journal Entry for Outstanding Expenses?
There are expenses that are due but have not been paid as of the end of the current accounting period. Such expenses are called...
What is the Journal Entry for Goods Given as Charity or Free Samples?
Journal Entry for Goods Given as Charity or Distributed as Free Samples
Charity generally refers to the voluntary giving of help, typically in the form of money...