FINANCIAL

&
NON-FINANCIAL
TRANSACTIONS - II

Basic idea on financial & non-financial transactions 1

 Already Covered
 What is financial transaction
 What is non-financial transaction
 Accounting Rules -3 Rules
 Double Entry system
 What is Journal & Journalising

Basic idea on financial & non-financial transactions 2

Passing the Journal Entry

Journalizing the transactions 3

 Passing journal entries – Procedure
• Each transaction to be analyzed in terms of the
accounts effected
• Find out the type of accounts affected in a transaction
i.e. Personal, Real, Nominal
• Apply the rules of debit and credit
• The equality of debit and credit entries must be
established
• A brief explanation of the transaction, known as
narration, is written below the account titles of the
transaction

Journalizing the transactions 4

 Journal
Date Particulars LF Amount Amount
(Debit) (Credit)

Journalizing the transactions 5

 Journalize The Transactions
Date Particulars Amt. (Rs.)

01.01.2015 Ram Deposited Cash 40000

02.01.2015 Ashok Withdrawn Cash 25000
06.01.2015 Sold goods 10000
08.01.2015 Purchased Furniture 5000
09.01.2015 Paid Rent in Cash 6000
11.01.2015 Purchased Goods 35000
15.01.2015 Cash Sales 12000
16.01.2015 Credit Sales 22000
18.01.2015 Cash received from Madhav 6000

Journalizing the transactions 7

 Journalize The Transactions
10.10.18 Business started with Rs.40,000
10.10.18 Purchased goods from Ashoka in Cash Rs.25,000
11.10.18 Sold goods to Madhav on Credit Rs.10,000
12.10.18 Insurance Premium Paid in Cash Rs.5,000
14.10.18 Cash received from Madhav Rs.5,000
16.10.18 Interest Paid to Mohan Rs.8,000
16.10.18 Purchased AC worth Rs.40,000
17.10.18 Sold old Car for Rs.29,000
20.10.18 Electricity bill paid Rs.6,000
21.10.18 Salary Paid Rs.12,000
22.10.18 Interest Received Rs.1,000

Journalizing the transactions 8

Any questions?

Accounting Rules 9
THANKS

SK Gupta
9871722234
guptasudhir1953@gmail.com