TRANSACTIONS RELATED BANKS :
| 1. | Cash deposited into the bank |
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Bank a/c |
Dr. |
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To Cash a/c |
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| 2. | Cash withdrawn for office use. |
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Cash a/c |
Dr. |
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To Bank a/c |
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3. |
When cheque is received from customer and deposited into bank same day. |
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Bank a/c |
Dr. |
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To Customer’s personal a/c |
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4. |
When cheque is received from customer and not deposited into bank same day. |
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Cash a/c |
Dr. |
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To Customer’s personal a/c |
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5. |
When above cheque (Point 4) is deposited later into bank. |
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Bank a/c |
Dr. |
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To Cash a/c |
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6. |
When payment is made through cheque. |
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Personal a/c |
Dr. |
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To Bank a/c |
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7. |
When expenses is paid through cheque. |
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Expense a/c |
Dr. |
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To Bank a/c |
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8. |
When interest is allowed by the bank. |
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Bank a/c |
Dr. |
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To Interest a/c |
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9. |
When Bank charges for the services provided. |
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Bank Charges a/c |
Dr. |
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To Bank a/c |
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Some special entries :
1. |
Bad Debts (when customer is declared insolvent and amount is irrecoverable |
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from him) |
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Cash a/c |
Dr. |
(If partial amount is recovered) |
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Bad Debts a/c |
Dr. |
(the irrecoverable part) |
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To Personal a/c |
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(the due amount) |
2. |
Bad debts recovered earlier written off as bad debts. |
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Cash a/c |
Dr. |
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To Bad debts recovered a/c |
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3. |
Outstanding Expenses (expenses due but not paid yet). |
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| Expenses a/c | Dr. | ||
| To Outstanding Expenses a/c | |||
| 4. | Prepaid Expenses (Expenses not due but paid in advance). | |
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Prepaid expenses a/c |
Dr. |
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To Expenses a/c |
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5. |
Accrued income (income due but not received yet). |
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Accrued Income a/c |
Dr. |
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To Income a/c |
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6. |
Unearned Income (Income not due but received in advance). |
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Income a/c |
Dr. |
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To Unearned Income a/c |
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7. |
Depreciation provided on fixed assets. |
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Depreciation a/c |
Dr. |
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To Related asset’s a/c |
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8. |
Interest on Capital provided. |
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Interest on capital a/c |
Dr. |
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To Capital a/c |
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9. |
Interest on Drawings charged. |
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Drawings a/c |
Dr. |
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To Interest on Drawings a/c |
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BOOKS OF ORIGINAL ENTRY/SPECIAL PURPOSE BOOKS
As size of the business grows and number of transactions increases, it becomes necessary for the business to divide the recording work. The books maintained are illustrated below :
Tansactions |
Further classification |
subsidiary Books Maintained |
Cash & Bank Related Transactions
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Only Cash Transactions Cash & Bank Transactions Cash payment of small amount |
Simple Cash Book Double Column Cash book Petty Cash Book |
Transactions Other than Cash & Bank
|
Credit Sale Credit Purchases Sales Returns Purchases Returns Transactions of Bill receivable Transactions of Bill Payable Any other transaction |
Sales Book Purchases Book Sales returns Book Purchases Returns Book Bill Receivable Book Bill Payable Book Journal Proper |
CBSE Accountancy Class XI ( By Mr. Aniruddh Maheshwari )
Email Id : [email protected]
