Journal entries questions and answers​

Journal entries questions and answers​: Explore detailed journal entries questions and answers to enhance your understanding of accounting and bookkeeping. Learn how to record financial transactions, make accurate entries, and improve your skills in managing accounts effectively.”

Here are 10 more journal entry-related questions for you:

1. What is the journal entry for purchasing office furniture worth ₹25,000 in cash?
2. How would you record the sale of goods worth ₹30,000 for cash?
3. What is the journal entry for paying electricity bill of ₹2,000 by cheque?
4. How would you record the purchase of raw materials worth ₹50,000 on credit?
5. What is the journal entry for receiving a commission of ₹5,000 in cash?
6. How would you record the payment of ₹15,000 to a creditor?
7. What is the journal entry for interest received on a fixed deposit of ₹10,000?
8. How would you record the return of goods worth ₹8,000 to a supplier?
9. What is the journal entry for writing off bad debts of ₹3,000?
10. How would you record the purchase of shares worth ₹1,00,000 in a company?

Journal entries questions and answers

1. Purchasing office furniture worth ₹25,000 in cash:

Account	Debit (₹)	Credit (₹)
Office Furniture A/c	25,000
Cash A/c		25,000

Explanation:
Office furniture is an asset, so the Office Furniture Account is debited. Cash is paid, so the Cash Account is credited.

2. Sale of goods worth ₹30,000 for cash:

Account	Debit (₹)	Credit (₹)
Cash A/c	30,000
Sales A/c		30,000

Explanation:
Cash is received, so the Cash Account is debited. Goods are sold, so the Sales Account is credited.

3. Paying electricity bill of ₹2,000 by cheque:

Account	Debit (₹)	Credit (₹)
Electricity Expense A/c	2,000
Bank A/c		2,000

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

4. Purchase of raw materials worth ₹50,000 on credit:

Account	Debit (₹)	Credit (₹)
Raw Materials A/c	50,000
Creditor A/c		50,000

Explanation:
Raw materials are an asset, so the Raw Materials Account is debited. Since it is purchased on credit, the Creditor Account is credited.

5. Receiving a commission of ₹5,000 in cash:

Account	Debit (₹)	Credit (₹)
Cash A/c	5,000
Commission Received A/c		5,000

Explanation:
Cash is received, so the Cash Account is debited. Commission is income, so the Commission Received Account is credited.

6. Payment of ₹15,000 to a creditor:

Account	Debit (₹)	Credit (₹)
Creditor A/c	15,000
Cash/Bank A/c		15,000

Explanation:
The creditor’s balance is reduced, so the Creditor Account is debited. Payment is made, so the Cash/Bank Account is credited.

7. Interest received on a fixed deposit of ₹10,000:

Account	Debit (₹)	Credit (₹)
Bank A/c	10,000
Interest Received A/c		10,000

Explanation:
Interest is received in the bank, so the Bank Account is debited. Interest is income, so the Interest Received Account is credited.

8. Return of goods worth ₹8,000 to a supplier:

Account	Debit (₹)	Credit (₹)
Creditor A/c	8,000
Purchase Returns A/c		8,000

Explanation:
Goods are returned to the supplier, so the Creditor Account is debited. The Purchase Returns Account is credited to reduce the purchase cost.

9. Writing off bad debts of ₹3,000:

Account	Debit (₹)	Credit (₹)
Bad Debts A/c	3,000
Debtor A/c		3,000

Explanation:
Bad debts are an expense, so the Bad Debts Account is debited. The debtor’s balance is reduced, so the Debtor Account is credited.

10. Purchase of shares worth ₹1,00,000 in a company:

Account	Debit (₹)	Credit (₹)
Investments A/c	1,00,000
Bank A/c		1,00,000

Explanation:
Shares are an investment, so the Investments Account is debited. Payment is made from the bank, so the Bank Account is credited.