Rules Applicable Dr. what comes in A/c to be Debited Cash Alc A/c to be Credited Cr. the giver Capital Ac Illustration A Process of Journalising: Transactions Two effect Two Types of Accounts Account 1. Started Cash comes Cash Alc Real Alc business in to the with Cash business 31,00,000 Proprietor is Capital Ale Personal the giver of Alc benefit 2. Purchased Computer Computer Real A/C Computer comes in Alc of 20,000 Cash goes Cash A/C Real Alc for Cash out 3. Paid for Wages is an Wages Alc Nominal Wages expenses Cash Alc Alc 39.000 Cash goes Real Alc out Computer Alc Cash Alc Dr. what comes in Cr. what goes out Dr. the expenses/ losses Cr. what goes out Wages Alc Cash A/C Illustration B: Journal entries Date Particulars L.F. Debit Amount () 1.00,000 Credit Amount () 1. 1,00.000 2. 20.000 Cash Alc Dr. To Capital Alc (Being started business with cash) Computer Alc. Dr. To Cash Alc (Being purchased Computer for cash) Wages Alc Dr. To Cash Alc (Being Wages paid) 20,000 3. 9,000 9.000 Total 1.29,000 1,29,000 Illustration-1 Journalise the following transactions in the books of Narendra General Stores 2019 April 1 Narendra commenced business with Cash 780,000 3 Purchased goods from Kiran 40,000 on credit 37 5 Paid rent 2,000 10 Sold goods to Mr.Vikas 55,000 on credit 15 18 Purchased Furniture of 30,000 @ GST 18% Received a Bearer Cheque of 25.000 from Mr Vikas Paid to Kiran by Cheque of Dena Bank * 20,000 Paid Salary 5000 21 30