ABC COMPANY

PURCHASE JOURNAL
Date

Invoice
No.

Name of Suppliers

P/R

Purchase (Dr)
Account Payable (Cr)

Amount

XXX

ABC COMPANY
PURCHASE RETURN and ALLOWANCE JOURNAL
Date

Memo
No.

Name of Suppliers

P/R

Account Payable (Dr)

Purchase (Cr)

Amount

XXX

ABC COMPANY
SALES JOURNAL
Date

Invoice
No.

Name of Customers

Account Receivables (Dr)

Sales (Cr)

P/R

Amount

XXX

ABC COMPANY
SALES RETURN and ALLOWANCE JOURNAL
Date

Memo
No.

Name of Customers

P/R

Sales (Dr)
Account Receivables (Cr)

Amount

XXX

ABC COMPANY
CASH BOOK
Dat
e

Narrati
ves

P/
R

Disco
unt
Allow
ed

Ca
sh

Ba
nk

Dat
e

Particu
lar

P/
R

Discou
nt
Receiv
ed

Ca
sh

Ba
nk

ABC COMPANY
PETTY CASH BOOK
Total
Vehicle Other Sundry
Receip Dat Narrativ Vouch
Station Postag
Paymen
Expens Expens Expens
ts
e
es
er No.
ery
e
t
e
e
e

DEPRCIATION
METHOD
FORMULAS:
Straight Line Method:

costscrap value
Life year

OR

cost scrapvalue X rate

Diminishing Balance Method: cost X rate %

Unit Method: Cost scrap value x

Unit Produced
}
Total Units

METHOD 1 (DIRECT METHOD):

Adjusting Entry:
Date

Account Title And Explanation

Depreciation Expense
Fixed Asset

Debit

Credi
t

XX
XX

Closing Entry:
Date

Account Title And Explanation

Profit and Loss account
Depreciation Expense

Debit

Credi
t

XX
XX

Discard Entries:
DISPOSAL ENTRY:
Date

Account Title And Explanation

Loss

Debit

Credi
t

XX
Fixed Asset

XX

SALES ENTRIES:
Date

Account Title And Explanation

Cash

Debit
XX

Fixed Asset
Date

Account Title And Explanation

Cash
Loss

XX
Debit

Credi
t

XX
XX
Fixed Asset

Date

Credi
t

Account Title And Explanation

Cash

XX
Debit

Credi
t

XX
Gain
Fixed Asset

XX
XX

EXCHANGE ENTRY:
Date

Account Title And Explanation

Fixed Asset (NEW)
Cash (May Be DR, CR or IGNORE)
Loss (if)
Gain (if)
Fixed Asset (OLD)

Debit

Credi
t

XX
XX
XX
XX
XX

METHOD 2 (ALLOWANCE METHOD):

Adjusting Entry:
Date

Account Title And Explanation

Depreciation Expense
Allowance for Depreciation

Debit

Credi
t

XX
XX

Closing Entry:
Date

Account Title And Explanation

Profit and Loss account
Depreciation Expense

Debit

Credi
t

XX
XX

Discard Entries:
DISPOSAL ENTRY:
Date

Account Title And Explanation

Loss
Allowance for Depreciation
Fixed Asset

Debit

Credi
t

XX
XX
XX

SALES ENTRIES:
Date

Account Title And Explanation

Cash
Allowance for Depreciation

Debit
XX
XX

Credi
t

Fixed Asset
Date

XX

Account Title And Explanation

Cash
Allowance for Depreciation
Loss
Fixed Asset

Date

Account Title And Explanation

Cash
Allowance for Depreciation
Gain
Fixed Asset

Debit

Credi
t

XX
XX
XX
XX
Debit

Credi
t

XX
XX
XX
XX

COMPUTATION
LOSS/GAIN ON SALE
Cost of fixed asset (old)
Accumulated Depreciation (-)
Book Value
Selling Price (-)
Loss/(Gain)

XX
(XX)
XXX
(XX)
XXX

EXCHANGE ENTRY:
Date

Account Title And Explanation

Fixed Asset (NEW)
Allowance for depreciation
Cash (May Be DR, CR or IGNORE)
Loss (if)
Gain (if)
Fixed Asset (OLD)

Debit

Credi
t

XX
XX
XX
XX
XX
XX

COMPUTATION
LOSS/GAIN ON EXCHANGE
Cost of fixed asset (old)
Accumulated Depreciation (-)
Book Value
Trade in allowance (-)
Loss /(Gain)

XX
(XX)
XXX
(XX)
XXX

COMPUTATION
CASH TO BE PAID/RECIEVED
Cost of fixed asset (new)
Trade in allowance (-)
Cash to be paid/(received)

XX
(XX)
XXX

DISPOSAL
Date

Account Title And Explanation

Accumulated Depreciation
Non-current asset

Date
1

Date
2

Account Title And Explanation

Non- Current asset
Revaluation account

Account Title And Explanation

Profit and Loss account
Non-current asset

Debit

Credi
t

XX
XX

Debit

Credi
t

XX
XX

Debit

Credi
t

XX
XX

If Book Value of Non-current asset is less than revalued amount: 1st entry will
passed
If Book Value of Non-current asset is more than revalued amount: 2nd entry will
passed

ACCOUNT RECIEVABLE
ALLOWANCE METHOD
BALANCE SHEET METHOD:
Account Receivable (Closing) X Estimated Rate in % = Closing Balance of
Allowance

Allowance for Bad Debt

Account Receivable (write off)

XX
Closing Balance (B.S)
XX

Opening Balance (if any)

XX
Account Receivable (Recovery)
bad Debt expense (I.S)
XX

INCOME STATEMENT METHOD:

Sales Revenue (Closing) X Estimated Rate in % = Bad Debt expense

Allowance for Bad Debt

Account Receivable (write off)
XX

Opening Balance (if any)

XX

Closing Balance (B.S)

XX

Bad Debt expense (I.S)

XX

BANK RECONCILATION
Account Title And Explanation
Les
s
Les
s
Add
Les
s
Les
s
Add
Add
Les
s

Cash
Book

Un-presented cheque

(XX)

Outstanding cheque
Un-cleared cheque
Standing order
Bank charges
Direct deposit
Credited by bank
Debited by bank
TOTAL

XX
(XX)
(XX)
XX
XX
(XX)
XX

ACCOUNTING FOR INVENTORIES

Pass
Book
(XX)

XX

PERIODIC SYSTEM:
SALES AND SALES RETURN ENTRY:
Date

Account Title And Explanation

Account Receivable
Sales Revenue

Date

Account Title And Explanation

Sales Return

Debit

Credi
t

XX
XX
Debit

Credi
t

XX
Account Receivable

XX

PURCHASE AND PURCHASE RETURN ENTRY:

Date

Account Title And Explanation

Purchase

Debit
XX

Account Payable
Date

Credi
t

Account Title And Explanation

Account Payable
Purchase Return

XX
Debit

Credi
t

XX
XX

PERPUTUAL SYSTEM:
SALES AND SALES RETURN ENTRY:
Date

Account Title And Explanation

Account Receivable
Sales Revenue

Date

Account Title And Explanation

Cost of Goods Sold
Merchandise Inventory

Debit

Credi
t

XX
XX
Debit

Credi
t

XX
XX

Date

Account Title And Explanation

Sales Return

Debit
XX

Account Receivable
Date

Credi
t
XX

Account Title And Explanation

Merchandise Inventory
Cost of Goods Sold

Debit

Credi
t

XX
XX

PURCHASE AND PURCHASE RETURN ENTRY:

Date

Account Title And Explanation

Merchandise Inventory
Account Payable

Date

Debit

Credi
t

XX
XX

Account Title And Explanation

Account Payable
Merchandise Inventory

Debit

Credi
t

XX
XX

FIFO / LIFO / AVCO

Date

Purchase
AMOU
UNIT RATE
NT

Sales
UNIT

RATE

AMOU
NT

Balance
AMOU
UNIT RATE
NT

AVCO =

Total Amount
Total Units

COST RATIO:
Cost Ratio =

Goods Available for sale at cost

100
Goods Available for sale at retail

Cost of Goods Sold = Net Sale x Cost Ratio

Ending Inventory at Cost = Ending Inventory at Retail x Cost Ratio