There are three types of format of journal entry.
They are American Style, European Style and Asian Style.
Date |
|
|
Debit |
Credit |
Jan, 2 |
Cash account |
|
xxxx |
|
|
Capital account |
|
|
xxxx |
|
To record business started with cash
|
|
|
|
Date |
|
|
|
|
|
Jan, 2 |
Cash account |
Dr |
|
xxxx |
|
|
Capital account |
|
|
|
xxxx |
|
To record business started with cash
|
|
|
|
|
Date |
Particulars |
|
LF |
Amount Dr |
Amount Cr |
Jan, 2 |
Cash account |
Dr |
|
xxxx |
|
|
To Capital account |
|
|
|
xxxx |
|
(Being- business started with cash……………)
|
|
|
|
|
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Click on link for YouTube videos topic wise : |
|
Accounting Equation |
|
Basic Journal Entries in Nepali |
|
Basic Journal Entries |
|
Journal Entry and Ledger |
|
Ledger Account |
|
Subsidiary Book |
|
Cash Book |
|
Trial Balance and Adjusted Trial Balance |
|
Bank Reconciliation Statement (BRS) |
|
Depreciation |
|
Click on link for YouTube videos chapter wise: |
|
Financial Accounting and Analysis (All videos) |
|
Accounting Process |
|
Accounting for Long Lived Assets |
|
Analysis of Financial Statement |
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There are different types of journal entries in accounting.
They can be classified into two types.
They are simple journal entry and compound journal entry.
When there is one debit and one credit transaction in one journal entry, it is known simple journal entry.
Example: Motorbike purchased in cash $/₹/Rs 180,000.
Journal Entry for Asian Style
Date |
Particulars |
|
LF |
Amount Dr |
Amount Cr |
March, |
Cash account |
Dr |
|
180,000 |
|
|
To Cash account |
|
|
|
5,70,000 |
|
(Being- motorbike purchased in cash) |
|
|
|
|
When there are two or more than two transactions either in debit side or in credit side, it is known compound journal entry.
Compound journal entry is the combination of two or more simple journal entry.
For compound journal entry, date and nature must be same.
Example
4th March: Business started with cash Rs 450,000 and stock Rs 120,000.
Journal Entry for Asian Style
Date |
Particulars |
|
LF |
Amount Dr |
Amount Cr |
March, |
Cash account |
Dr |
|
4,50,000 |
|
4 |
Stock account |
Dr |
|
1,20,000 |
|
|
To Capital account |
|
|
|
5,70,000 |
|
(Being- business started with cash and stock) |
|
|
|
|
Example
15th April: Cash paid to creditors Rs 14,800 and discount received Rs 200.
Journal Entry for Asian Style
Date |
Particulars |
|
LF |
Amount Dr |
Amount Cr |
April, |
Creditors account |
Dr |
|
15,000 |
|
15 |
To Cash account |
|
|
|
14,800 |
|
To Discount received account |
|
|
|
200 |
|
(Being- cash paid to creditors and discount received) |
|
|
|
|
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