An example of journal entries. Image credit Frank Wood’s Business Accounting 1
Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: The General Journal Example
You are a bookkeeper for J Benzi. You are to show the journal entries necessary to record the following items:
a) 2014 May 1 Bought a van on credit from Puzey n Payne Garage for $5,395.
b) 2014 May 3 A debt of $81 owing from P Kupara was written off as a bad debt.
c) 2014 May 8 Office furniture bought by us for $610 was returned to the supplier Elegence Ltd,
as it was unsuitable. Full allowance will be given to us.
d) 2014 May 12 We are owed $320 by R Moyo. He is declared bankrupt and we received $51 in
full settlement of the debt.
e) 2014 May 14 We take goods costing $22 out of the business stock without paying for them.
f ) 2014 May 28 Some time ago we paid an insurance bill thinking that it was all in respect of the
business. We now discover that $62 of the amount paid was in fact insurance of our private
house.
(g) 2014 May 28 Bought machinery for $1,260 on credit from Pantomine Ltd.
- Narrations are not required
NB: While Journal Entries often appear in examinations, Ordinary Level students need not know how to make narrations although in the real world narrations are indeed required and form part of Journal entries.
Solution
| Journal | ||||
|---|---|---|---|---|
| Date: May 2014 | Details | Folio | Dr | Cr |
| $ | $ | |||
| 1 | Motor Van | GL3 | 5,395.00 | |
| Puzey n Payne | GL4 | 5,395.00 | ||
| 3 | Bad Debts | GL5 | 81.00 | |
| P Kupara | GL78 | 81.00 | ||
| 8 | Elegence Ltd | GL63 | 610.00 | |
| Office Furniture | GL6 | 610.00 | ||
| 12 | Bad Debts | GL5 | 269.00 | |
| Cash/Bank | CB | 51.00 | ||
| R Moyo | SL 45 | 320.00 | ||
| 14 | Drawings | GL23 | 22.00 | |
| Purchases | GL34 | 22.00 | ||
| 28 | Drawings | GL23 | 62.00 | |
| Insurance expense | GL34 | 62.00 | ||
| 28 | Machinery | GL48 | 1,260.00 | |
| Pantomine Ltd | GL67 | 1,260.00 |
To access more topics go to the Principles of Accounts Notes page.
