Accounting Journal Entries PDF

Recording (journal) Every transaction should be included two side (Debit side and credit side) Debit is (DR): Debit comes from the word debtor and it means, "what is due." Credit is (CR): Credit comes from creditor, meaning "something entrusted to another or a loan." Debit items  All assets....

Recording (journal) Every transaction should be included two side (Debit side and credit side) Debit is (DR): Debit comes from the word debtor and it means, "what is due." Credit is (CR): Credit comes from creditor, meaning "something entrusted to another or a loan." Debit items  All assets.  Increase assets.  Decrease in liabilities.  Expenses  Withdrawals or drawings Credit item:  Liabilities  Owners’ equity  Increase liabilities  Decrease assets  Revenues Journal form Date Accounting title DR CR x Debit xx Credit xx  Example (1) Ahmed decides to open a computer programming Service Company, which she names (soft byte). On September 1, 2021 he made the following transactions: - Sep.1: Ray invests $ 20,000 cash in the business. Sep.3: soft byte purchased computer equipment for $ 8000 cash. Sep.7: soft byte purchased for $ 1200 office supplies cash. Sep.10: soft byte received $ 1200 cash from customers for programming service provided. Sep.15: Ray withdraws $ 250 cash for a personal use Required: - Prepare journal entries Solution Accounting title DR CR Sep 1 Cash 20,000 Capital 20,000 Sep 3 Equipment 8000 Cash 8000 Sep 7 Office supplies 1200 Cash 1200 Sep 10 Cash 1200 Revenues 1200 Sep 15 Withdrawals 250 Cash 250 Example (2) Ahmed decides to start a new restaurant which names Suchi at 2024 November 1; Ahmed Invested $ 10000 Cash to start the shop. November 2: Sushi Purchased equipment for $ 5000 on account November 3: Sushi Paid $ 400 cash for office rent. November 4: Sushi sold ten meals for customers with $ 5100 cash November 6: Sushi sold 3meals for $ 3000 on account. Required: - Prepare journal entries Solution Date Accounting title DR CR Nov 1 Cash 10,000 Capital 10,000 Nov 2 Equipment 5000 Accounts payable 5000 Nov3 Rent expense 400 Cash 400 Nov 4 Cash 5100 Revenues 5100 Nov 6 Accounts receivable 3000 Revenues 3000 Example (3) Tarek decides to start a new repairing shop which names Perfect at 2024 November 2: perfect Purchased equipment for $ 1000 cash. November 3: perfect Paid $ 500 cash for office rent. November 4: perfect Received $ 5100 cash from customers for repair service. November 5: perfect paid Telephone bill for $ 2000 cash. November 6: perfect provided service to customer for $ 5000 on account November 7: Tarek withdraw $500 cash for a personal using. Required: - Prepare journal entries Date Accounting title DR CR Nov 1 Equipment 1000 cash 1000 Nov 2 Rent expense 500 Cash 500 Nov3 Cash 5100 Revenues 5100 Nov 4 Telephone expense 2000 cash 2000 Nov 6 Accounts receivable 5000 Revenues 5000 Nov 7 Withdrawals 500 Cash 500