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Practical Accounting _ Basic Entries

Entry for Purchase (In case of cash purchase)

 Purchase a/c                Dr.
     To Cash a.c
(Being Goods purchased for cash)


Entry for Purchase  (In case of credit purchase)

 Purchase a/c                Dr.
     To Name of the person
(Being goods purchased on credit)

Note: If the purchase transactions has the word "for cash" or "with out any name" then it is considered as a cash purchase.
If name of the seller is given but there is no "for cash" then it is considered as a credit purchase.


Entry for Sales (In case of cash sales)

Cash a/c                       Dr.
     To Sales a/c
(Being goods sold for cash)

Entry for Sales ( In case of credit sales)

 Name of the buyer         Dr.
       To Sales a/c
(Being goods sold on credit)

Entry for Purchase return

 Name of the seller  a/c      Dr.
        To Purchase return a/c
(Being goods returned)

Entry for sales return

 Sales return a/c               Dr.
          To Name of the buyer a/c
(Being goods returned was received)


Entry for expenses (Ex. Paid : Rent/commission/interest/Telephone charges/postage and so on)
       
Expenses a/c                   Dr.
        To Cash a/c
(Being the particular expense paid)
Entry for Income (Ex. Received: Rent/commission/interest/and so on)

 Cash a/c                         Dr.
       To Income a/c
(Being particular income received)


Entry for capital

 Cash a/c                         Dr.
       To capital a/c
(Being cash received as a capital to start a business)

Cash Deposited

IOB bank a/c                   Dr.
      To Cash a/c
(Being cash deposited in IOB bank account)

Cash Wirhdrew
Cash a/c                             Dr.
        To IOB a/c
(Being cash withdrew from IOB bank account)

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