Introduction
Journal entries are the foundation of the accounting process. They are used to record all financial transactions in chronological order, ensuring that every debit has a corresponding credit. The following are journal entries for the given transactions, based on generally accepted accounting principles.
Main Body
Journal Entries for June 2018
| Date | Particulars | Debit (Rs.) | Credit (Rs.) |
|---|---|---|---|
| June 1 | Cash A/c Dr. To Sales A/c (Cash sale to Ashok) |
18,000 | 18,000 |
| June 2 | Purchases A/c Dr. To Vinod A/c (Bought goods from Vinod) |
10,000 | 10,000 |
| June 2 | Cartage Inward A/c Dr. To Cash A/c (Paid cartage on goods bought) |
200 | 200 |
| June 3 | Cash A/c Dr. To Miscellaneous Income A/c (Old newspapers sold) |
100 | 100 |
| June 4 | Municipal Taxes A/c Dr. To Bank A/c (Paid municipal taxes by cheque) |
900 | 900 |
| June 4 | Repairs to Machinery A/c Dr. To Cash A/c (Paid for repairs to machinery) |
600 | 600 |
| June 8 | Bank A/c Dr. To Commission Received A/c (Received commission by cheque) |
1,700 | 1,700 |
Explanation of Accounts Used
- Cash/Bank A/c: Used for transactions involving cash or cheque.
- Sales A/c: Income account for cash sales.
- Purchases A/c: Expense account for goods bought.
- Cartage Inward A/c: Expense related to transporting goods to the business.
- Municipal Taxes A/c: Expense for municipal obligations.
- Repairs to Machinery A/c: Expense for maintenance of machinery.
- Commission Received A/c: Income earned through commission.
- Miscellaneous Income A/c: Other incomes not categorized under primary income sources.
Conclusion
Accurate journal entries are essential for maintaining financial integrity. Each transaction is recorded with proper narration and classification, ensuring transparency and facilitating further accounting processes like ledger posting and preparation of trial balance.