As we know,
Real account has all information about Assets & liabilities basis names and transaction details.
For Example:-
Albert has A business of Mobile Shop. Albert should kept the transactions of his Assets and his Liabilities.
Assets =Buildings, Vehicles, machines, Cash etc. of Business
Liabilities= Creditors, Loans, Payable etc. of Business
Eg;
1. Albert purchased Computers of 500000 $ on Jan-1
1. Albert purchased Computers of 500000 $ on Jan-1
Journal Entry in Format of Journal
Date | Particulars | Ledger folio | DEBIT ($) | CREDIT ($) |
Jan 1 | Computer A/c .……DR To Cash A/c (To Indicates CR) (Being Computer Purchased ) | 500000/- | 500000/- | |
Total | 500000/- | 500000/- | ||
NOTE:- | In the Journal Computer Account is debited because, when Computer purchased, Computer comes to us, so the formula of Real account Called What comes in DR. so Computer Account is Debited. & In the Journal Cash Account is credited because, Cash goes out, so the formula of Real account Called What goes out CR. so Cash Account is Credited. |
2. Albert Sales old Furniture of 400000 $ on Jan-5
Date | Particulars | Ledger folio | DEBIT ($) | CREDIT ($) |
Jan-5 | Cash A/c ……… To Furniture A/c(To Indicates CR) (Being Furniture Sold ) | 400000/- | 400000/- | |
Total | 400000/- | 400000/- | ||
NOTE:- | n the Journal Cash Account is debited because, when Furniture Sold, Cash comes to us, so the formula of Real account Called What comes in DR. so Cash Account is Debited. & In the Journal Furniture Account is credited because, when Furniture Sold, Furniture goes out, so the formula of Real account Called What goes out CR. so Furniture Account is Credited. |
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