Format of Journal Entry: Types of Journal Entries

Arjun EP

Published on: September 18, 2020

Format of Journal Entry

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	http://tiny.cc/c89jkz
Basic Journal Entries in Nepali	http://tiny.cc/uaakkz
Basic Journal Entries	http://tiny.cc/8aakkz
Journal Entry and Ledger	http://tiny.cc/caakkz
Ledger Account	http://tiny.cc/haakkz
Subsidiary Book	http://tiny.cc/399jkz
Cash Book	http://tiny.cc/889jkz
Trial Balance and Adjusted Trial Balance	http://tiny.cc/c59jkz
Bank Reconciliation Statement (BRS)	http://tiny.cc/q59jkz
Depreciation	http://tiny.cc/ugakkz
Click on link for YouTube videos chapter wise:
Financial Accounting and Analysis (All videos)	http://tiny.cc/jlersz
Accounting Process	http://tiny.cc/mlersz
Accounting for Long Lived Assets	http://tiny.cc/plersz
Analysis of Financial Statement	http://tiny.cc/slersz

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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

4^th 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

15^th 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)