Page 34 - DEBK-XI(2020)

Journal 8.3

6. Cash sales Cash or Bank A/c ...Dr.
To Sales A/c

7. Opening a Bank Account Bank A/c ...Dr.
To Cash A/c
To Capital A/c (If opened with personal cash/cheque)

8. Withdrawal of cash from bank Cash A/c (Office Cash) ...Dr.
Drawings A/c (Personal use) ...Dr.
To Bank A/c

9. Collection of cash/cheque from customers Cash or Bank A/c (Net amount) ...Dr.
(and discount allowed, if any) Discount Allowed A/c (Discount) ...Dr.
To Customers’ A/c

10. For payment of cash/cheque to suppliers Suppliers’ A/c ...Dr.
(and discount received, if any) To Cash or Bank A/c (Net Amount)
To Discount Received A/c (Discount)
11. Bad Debts Bad Debts A/c ...Dr.
To Debtor’s A/c
12. Recovery of Bad Debts Cash or Bank A/c ...Dr.
To Bad Debts Recovered A/c

13. Purchase of machinery for cash Machinery A/c ...Dr.
To Cash or Bank A/c

14. Purchase of Machinery on Credit Machinery A/c ...Dr.
To Supplier’s A/c
15. Depreciation charged on assets Depreciation A/c ...Dr.
To Asset A/c
16. Sale or disposal of any old asset at a loss Cash or Bank A/c ...Dr.
Loss on Sale of Asset A/c (Profit and Loss A/c) ...Dr.
To Asset A/c
17. Sale or disposal of any old asset at a profit Cash or Bank A/c ...Dr.
To Asset A/c
To Gain (Profit) on Sale of Asset A/c (Profit and Loss A/c)
18. Goods returned by the customer Returns Inward A/c ...Dr.
To Debtor’s A/c
19. Goods returned to the supplier Creditor’s A/c ...Dr.
To Returns Outward A/c
20. Distribution of goods as samples Advertisement/Samples/Sales Promotion Expenses A/c ...Dr.
To Purchases A/c (Trader)