Rules Applicable Dr. what comes in A/c to be Debited Cash Alc A/c to be Credited Cr. the giver Capital A.C Illustration A Process of Journalising: Transactions Two effect Two Types of Accounts Account 1. Started Cash comes Cash Alc Real A/C business in to the with Cash business 1,00,000 Proprietor is Capital A/c Personal the giver of Alc benefit 2. Purchased Computer Computer Real Alc Computer comes in A/C of 20,000 Cash goes Cash Alc Real A/C for Cash out 3. Paid for Wages is an Wages A/c Nominal Wages expenses Cash Alc A/C 39,000 Cash goes Real Alc out Computer Alc Cash A/C Dr. what comes in Cr. what goes out Dr. the expenses/ losses Cr. what Wages A/C Cash Alc goes out Illustration - B: Journal entries Date Particulars L.F. Debit Amount (3) 1,00,000 Credit Amount 1. 1,00,000 2. 20.000 20,000 Cash Alc...... Dr. To Capital Alc (Being started business with cash) Computer A/c. Dr. To Cash A/C (Being purchased Computer for cash) Wages Alc Dr. To Cash A/C (Being Wages paid) Total 3. 9,000 9.000 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 3 80,000 3 Purchased goods from Kiran 240.000 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