UNIQUE INSTITUTE OF COMPUTER TECHNOLOGY

Journal entries questions and answers Fully Explained

Journal entries questions in English for practice with Fully Explain Answer

Journal entries questions

1. Purchasing goods worth ₹10,000 in cash:

Explanation:
Goods are purchased, so the Purchases Account is debited. Cash is paid, so the Cash Account is credited.

2. Sale of goods worth ₹15,000 on credit:

Account Debit (₹) Credit (₹)
Debtor A/c 15,000  
Sales A/c   15,000

Explanation:
Goods are sold on credit, so the Debtor Account is debited, and the Sales Account is credited.

3. Paying rent of ₹5,000 by cheque:

Account Debit (₹) Credit (₹)
Rent A/c 5,000  
Bank A/c   5,000

Explanation:
Rent is an expense, so the Rent Account is debited. Payment is made by cheque, so the Bank Account is credited.

4. Withdrawal of ₹20,000 cash from the bank for office use:

Account Debit (₹) Credit (₹)
Cash A/c 20,000  
Bank A/c   20,000

Explanation:
Cash is withdrawn from the bank, so the Cash Account is debited, and the Bank Account is credited.

5. Receiving ₹12,000 from a debtor:

Account Debit (₹) Credit (₹)
Cash A/c 12,000  
Debtor A/c   12,000

Explanation:
Cash is received, so the Cash Account is debited. The debtor’s balance is reduced, so the Debtor Account is credited.

6. Payment of salaries worth ₹50,000 to employees:

Account Debit (₹) Credit (₹)
Salaries A/c 50,000  
Cash/Bank A/c   50,000

Explanation:
Salaries are an expense, so the Salaries Account is debited. Payment is made, so the Cash/Bank Account is credited.

7. Purchasing machinery worth ₹1,00,000 on credit:

Account Debit (₹) Credit (₹)
Machinery A/c 1,00,000  
Creditor A/c   1,00,000

Explanation:
Machinery is an asset, so the Machinery Account is debited. Since it is purchased on credit, the Creditor Account is credited.

8. Owner withdrawing ₹10,000 cash for personal use:

Account Debit (₹) Credit (₹)
Drawings A/c 10,000  
Cash A/c   10,000

Explanation:
The owner’s withdrawal is recorded in the Drawings Account (debited). Cash is reduced, so the Cash Account is credited.

9. Receiving a loan of ₹2,00,000 from a bank:

Account Debit (₹) Credit (₹)
Bank A/c 2,00,000  
Loan A/c   2,00,000

Explanation:
The bank balance increases, so the Bank Account is debited. The loan is a liability, so the Loan Account is credited.

10. Depreciation of an asset worth ₹5,000 for the year:

Account Debit (₹) Credit (₹)
Depreciation A/c 5,000  
Asset A/c   5,000