Learn Debit, Credit and Practical Accounting Entries — Beginner to Intermediate
Journal entries are the foundation of financial accounting. Whether you are a B.Com student preparing for semester examinations, a fresher attending an accounting interview or someone learning Tally Prime, understanding journal entries is essential.
To learn GST return filing step by step, explore our GST course in Kolkata.
For hands-on practice on real data, a practical tally course in Kolkata can help you apply these concepts at work.
In this guide, you will learn 50 commonly used journal entries covering capital, purchases, sales, expenses, assets, liabilities, adjustments and basic GST transactions.
All examples use simplified accounting treatments for learning purposes. Entries can vary depending on the transaction, inventory accounting system, taxes and other circumstances.
1. What Is a Journal Entry?
A journal entry records a financial transaction in the books of account using the double-entry bookkeeping system.
Every standard journal entry has at least one debit and one credit, with equal total amounts.
Example: Business started with ₹1,00,000 cash.
Cash A/c Dr. ₹1,00,000
To Capital A/c ₹1,00,000
Explanation: Cash increases and the owner’s capital increases.
2. Golden Rules of Accounting
Traditional accounting uses three categories of accounts:
| Account type | Debit | Credit |
|---|---|---|
| Personal | Receiver | Giver |
| Real | What comes in | What goes out |
| Nominal | Expenses and losses | Incomes and gains |
Another useful method is to understand how accounts increase or decrease.
Assets and expenses generally increase with debits. Liabilities, capital and income generally increase with credits.
3. Basic Journal Entries (1–10)
The following entries assume a sole proprietorship and the relevant transactions described.
1. Business started with cash ₹1,00,000
Cash A/c Dr. ₹1,00,000
To Capital A/c ₹1,00,000
2. Capital introduced through bank ₹50,000
Bank A/c Dr. ₹50,000
To Capital A/c ₹50,000
3. Goods purchased for cash ₹10,000
Purchases A/c Dr. ₹10,000
To Cash A/c ₹10,000
4. Goods purchased on credit from Amit ₹15,000
Purchases A/c Dr. ₹15,000
To Amit A/c ₹15,000
5. Goods sold for cash ₹20,000
Cash A/c Dr. ₹20,000
To Sales A/c ₹20,000
6. Goods sold on credit to Rahul ₹12,000
Rahul A/c Dr. ₹12,000
To Sales A/c ₹12,000
7. Cash deposited into bank ₹8,000
Bank A/c Dr. ₹8,000
To Cash A/c ₹8,000
8. Cash withdrawn from bank for office use ₹5,000
Cash A/c Dr. ₹5,000
To Bank A/c ₹5,000
9. Owner withdrew cash for personal use ₹3,000
Drawings A/c Dr. ₹3,000
To Cash A/c ₹3,000
10. Additional capital introduced in cash ₹25,000
Cash A/c Dr. ₹25,000
To Capital A/c ₹25,000
4. Expense Journal Entries (11–20)
11. Office rent paid ₹8,000
Rent A/c Dr. ₹8,000
To Bank A/c ₹8,000
12. Employee salaries paid ₹20,000
Salaries A/c Dr. ₹20,000
To Bank A/c ₹20,000
13. Electricity bill paid ₹3,000
Electricity Expense A/c Dr. ₹3,000
To Bank A/c ₹3,000
14. Office stationery purchased for use ₹1,500
Stationery Expense A/c Dr. ₹1,500
To Cash A/c ₹1,500
15. Telephone expense paid ₹2,000
Telephone Expense A/c Dr. ₹2,000
To Bank A/c ₹2,000
16. Office advertisement expense paid ₹5,000
Advertisement Expense A/c Dr. ₹5,000
To Bank A/c ₹5,000
17. Insurance premium paid ₹12,000
Insurance Expense A/c Dr. ₹12,000
To Bank A/c ₹12,000
Assumption: The full premium relates to the current reporting period.
18. Repairs expense paid ₹4,000
Repairs A/c Dr. ₹4,000
To Cash A/c ₹4,000
19. Office cleaning expense paid ₹1,200
Cleaning Expense A/c Dr. ₹1,200
To Cash A/c ₹1,200
20. Internet expense paid ₹1,000
Internet Expense A/c Dr. ₹1,000
To Bank A/c ₹1,000
5. Asset Journal Entries (21–30)
21. Furniture purchased for cash ₹30,000
Furniture A/c Dr. ₹30,000
To Cash A/c ₹30,000
22. Machinery purchased on credit ₹1,50,000
Machinery A/c Dr. ₹1,50,000
To Machinery Supplier A/c ₹1,50,000
23. Computer purchased through bank ₹40,000
Computers A/c Dr. ₹40,000
To Bank A/c ₹40,000
24. Land purchased through bank ₹5,00,000
Land A/c Dr. ₹5,00,000
To Bank A/c ₹5,00,000
This simplified example excludes stamp duty and other transaction costs.
25. Annual depreciation on furniture ₹3,000
Depreciation A/c Dr. ₹3,000
To Accumulated Depreciation — Furniture A/c ₹3,000
26. Depreciation on computer ₹8,000
Depreciation A/c Dr. ₹8,000
To Accumulated Depreciation — Computer A/c ₹8,000
27. Machinery installation cost paid ₹10,000
Machinery A/c Dr. ₹10,000
To Bank A/c ₹10,000
Assumption: Installation is directly attributable to making the asset ready for intended use.
28. Office equipment purchased on credit ₹18,000
Office Equipment A/c Dr. ₹18,000
To Supplier A/c ₹18,000
29. Owner introduced personal furniture into business valued at ₹15,000
Furniture A/c Dr. ₹15,000
To Capital A/c ₹15,000
30. Equipment sold at its carrying amount of ₹10,000
Bank A/c Dr. ₹10,000
To Equipment A/c ₹10,000
Assumption: Equipment’s carrying amount is ₹10,000, with no gain or loss and no remaining accumulated depreciation balance to clear.
6. Income and Receivables (31–40)
31. Commission received in bank ₹6,000
Bank A/c Dr. ₹6,000
To Commission Received A/c ₹6,000
32. Interest received ₹2,000
Bank A/c Dr. ₹2,000
To Interest Income A/c ₹2,000
33. Rent received ₹10,000
Bank A/c Dr. ₹10,000
To Rent Income A/c ₹10,000
34. Service income received ₹25,000
Bank A/c Dr. ₹25,000
To Service Revenue A/c ₹25,000
35. Service rendered on credit ₹15,000
Customer A/c Dr. ₹15,000
To Service Revenue A/c ₹15,000
36. Customer paid outstanding balance ₹10,000
Bank A/c Dr. ₹10,000
To Customer A/c ₹10,000
37. Discount allowed to customer ₹500 on a ₹10,000 receivable; balance received by bank
Bank A/c Dr. ₹9,500
Discount Allowed A/c Dr. ₹500
To Customer A/c ₹10,000
38. Discount received from supplier ₹300 on a ₹5,000 payable; balance paid by bank
Supplier A/c Dr. ₹5,000
To Bank A/c ₹4,700
To Discount Received A/c ₹300
39. Credit customer returned goods ₹2,000
Sales Returns A/c Dr. ₹2,000
To Customer A/c ₹2,000
40. Goods returned to credit supplier ₹1,500
Supplier A/c Dr. ₹1,500
To Purchase Returns A/c ₹1,500
7. Adjustment and Liability Entries (41–47)
41. Outstanding salary at year-end ₹5,000
Salary Expense A/c Dr. ₹5,000
To Salary Payable A/c ₹5,000
42. Rent of ₹6,000 paid in advance
Prepaid Rent A/c Dr. ₹6,000
To Bank A/c ₹6,000
43. Interest of ₹2,000 earned but not yet received
Accrued Interest A/c Dr. ₹2,000
To Interest Income A/c ₹2,000
44. Loan of ₹2,00,000 received from bank
Bank A/c Dr. ₹2,00,000
To Bank Loan A/c ₹2,00,000
45. Repayment of ₹20,000 loan principal
Bank Loan A/c Dr. ₹20,000
To Bank A/c ₹20,000
46. Interest of ₹2,000 paid on bank loan
Interest Expense A/c Dr. ₹2,000
To Bank A/c ₹2,000
47. Advance of ₹10,000 received from customer for future services
Bank A/c Dr. ₹10,000
To Customer Advance A/c ₹10,000
8. GST Journal Entry Examples (48–50)
The following illustrations assume regular taxable domestic supplies, a valid tax invoice, 18% GST and that all other relevant conditions are met.
48. Intra-state goods purchased on credit for ₹10,000 + 18% GST
Purchases A/c Dr. ₹10,000
Input CGST A/c Dr. ₹900
Input SGST A/c Dr. ₹900
To Supplier A/c ₹11,800
Input tax credit is subject to applicable legal eligibility requirements.
49. Intra-state goods sold on credit for ₹20,000 + 18% GST
Customer A/c Dr. ₹23,600
To Sales A/c ₹20,000
To Output CGST A/c ₹1,800
To Output SGST A/c ₹1,800
50. Inter-state taxable goods sold on credit for ₹15,000 + 18% IGST
Customer A/c Dr. ₹17,700
To Sales A/c ₹15,000
To Output IGST A/c ₹2,700
Actual GST classification, applicable rates, ITC eligibility and accounting treatment must be checked for the specific transaction.
9. Five Journal Entry Practice Questions
Solve the following before checking the answers.
Question 1: Purchased goods from A Ltd. on credit for ₹8,000.
Answer:
Purchases A/c Dr. ₹8,000
To A Ltd. A/c ₹8,000
Question 2: Paid outstanding salary ₹4,000 through bank.
Answer:
Salary Payable A/c Dr. ₹4,000
To Bank A/c ₹4,000
Question 3: Received ₹7,000 from a customer against an existing receivable.
Answer:
Bank A/c Dr. ₹7,000
To Customer A/c ₹7,000
Question 4: Purchased office printer for ₹12,000 through bank.
Answer:
Office Equipment A/c Dr. ₹12,000
To Bank A/c ₹12,000
Question 5: Proprietor withdrew ₹2,500 from business bank account for personal use.
Answer:
Drawings A/c Dr. ₹2,500
To Bank A/c ₹2,500
10. Common Journal Entry Mistakes
Students should avoid:
Treating purchases of goods and purchases of fixed assets identically.
Recording proprietor withdrawals as business expenses.
Confusing receivables with revenue.
Forgetting accrued expenses and prepaid expenses.
Treating loan principal repayments as ordinary expenses.
Claiming GST input tax credit without checking eligibility.
Memorising entries without understanding the transaction.
11. How to Practise Journal Entries Effectively
Start by identifying the transaction and the accounts affected.
Then classify each account and determine whether it increases or decreases.
Write the debit and credit entry, and verify that total debits equal total credits.
Finally, practise posting the entry into ledger accounts and understand how it affects the Trial Balance and financial statements.
For Tally Prime learners, try identifying which voucher type would normally be appropriate for the transaction.
Frequently Asked Questions
What are journal entries in accounting?
Journal entries are chronological records of transactions using equal debit and credit amounts under double-entry bookkeeping.
How can beginners learn journal entries?
Start with the accounting equation and basic cash, bank, sales and purchase entries before moving to adjustments and taxation.
Are journal entries important in B.Com examinations?
Yes. Journal entries help students understand practical accounting and support preparation for ledger, trial balance and financial-statement questions.
Do all journal entries have only two accounts?
No. Compound journal entries can affect more than two accounts, but the total debits must still equal the total credits.
Is recording entries in Tally Prime the same as manual journal entries?
The accounting principles are connected, but Tally Prime uses different voucher types and features to record transactions.
Test Your Accounting Skills on Skillshort
Do you understand journal entries, ledger accounts, debit-credit rules and financial accounting?
Practise your accounting fundamentals with Skillshort’s online Accounting Skill Test:
https://skillshort.com/accounting-quiz/
For additional study resources, explore:
https://skillshort.com/bcom-study-hub/
Final Tip: Don’t just memorise 50 entries. Practise them, understand the logic and solve new transactions independently.
Related Reading
- CU B.Com Sem 1 Financial Accounting Notes — Complete Study Guide
- CU B.Com Sem 1 Notes & Study Guide 2026
- Practical Lab — Real Office Work Practice
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