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Accounting Examples and Journal Entries

accounting basic entries

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somnath.mhetre2022
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3 views3 pages

Accounting Examples and Journal Entries

accounting basic entries

Uploaded by

somnath.mhetre2022
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Example:

1. Goods purchased in cash ₹25,000.


2. Goods worth ₹5,000 were given as a donation.
3. Goods worth ₹1,000 taken away for personal use by
proprietor.
4. Goods lost by fire ₹2,500
Solution:

1. Goods sold to Nupur on credit worth ₹2,000.


2. Goods sold to Gaurav for cash ₹5,000.
Solution:
Purchase Return or Return Outwards Account: When
purchased goods are returned to the supplier, it is denoted as
Purchase Return A/c or Return Outwards A/c.
Entry

Goods purchased worth ₹2,000 from Shubham were returned.

Shubham A/c Dr. 2000


To Purchase Return A/c 2000

Bad Debts:

Bad Debts A/c dr

To Debtors A/C
When the goods are sold to customers on credit, there can be a
situation where a few of them fail to pay the amount due to them
because of insolvency or any other reason, and then the amount
that remains unrecovered is called Bad Debts.
Journal Entry:

Bad Debts Recovered:

When the amount that is earlier written as bad debts, is now


recovered, it is called bad debts recovered.
Journal Entry:

 For Bad debts

 For provision for bad debts journal entries

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