100 Important Journal Entries for BBS 1st Year | SanKush Edits

By SanKush Edits
BBS Account 10 min read
100 Important Journal Entries for BBS 1st Year | SanKush Edits

Learn 100 important journal entries for BBS 1st Year Financial Accounting and Analysis with debit-credit rules and exam-ready examples.

Journal entries are the foundation of accounting. Every financial transaction of a business is first recorded in the journal before it is transferred to the ledger accounts.

This complete guide from SanKush Edits contains 100 important journal entries for BBS 1st Year students studying Financial Accounting and Analysis. The entries cover cash transactions, purchases, sales, expenses, income, assets, liabilities, adjustments, bills of exchange and final account transfers.

Before studying the entries, remember these basic rules:

First, identify the two or more accounts affected by the transaction. Next, determine the type of each account, such as asset, liability, capital, expense or income.

After identifying the accounts, decide which account should be debited and which account should be credited. Finally, record a short narration explaining the transaction.

Furniture is debited because a business asset has increased. Cash is credited because another asset has decreased.

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100 Important Journal Entries for BBS 1st Year

Students can use this article for exam preparation, numerical practice, homework support and quick revision. Each entry clearly shows the account to be debited and the account to be credited.

Basic Rules of Debit and Credit

  • Assets and expenses increase on the debit side.
  • Liabilities, capital and income increase on the credit side.
  • Debit the receiver and credit the giver.
  • Debit what comes in and credit what goes out.
  • Debit all expenses and losses, and credit all incomes and gains.
  • The total debit amount must always equal the total credit amount.

Journal Entries 1–25: Basic Business Transactions

No. Transaction Journal Entry
1 Business started with cash Cash A/c Dr.
To Capital A/c
2 Cash deposited into bank Bank A/c Dr.
To Cash A/c
3 Cash withdrawn from bank for office use Cash A/c Dr.
To Bank A/c
4 Goods purchased for cash Purchases A/c Dr.
To Cash A/c
5 Goods purchased on credit Purchases A/c Dr.
To Creditor’s A/c
6 Goods sold for cash Cash A/c Dr.
To Sales A/c
7 Goods sold on credit Debtor’s A/c Dr.
To Sales A/c
8 Carriage inward paid Carriage Inward A/c Dr.
To Cash/Bank A/c
9 Carriage outward paid Carriage Outward A/c Dr.
To Cash/Bank A/c
10 Wages paid Wages A/c Dr.
To Cash/Bank A/c
11 Salary paid Salary A/c Dr.
To Cash/Bank A/c
12 Rent paid Rent A/c Dr.
To Cash/Bank A/c
13 Commission paid Commission Expense A/c Dr.
To Cash/Bank A/c
14 Insurance premium paid Insurance A/c Dr.
To Cash/Bank A/c
15 Electricity bill paid Electricity Expense A/c Dr.
To Cash/Bank A/c
16 Office expenses paid Office Expenses A/c Dr.
To Cash/Bank A/c
17 Furniture purchased for cash Furniture A/c Dr.
To Cash/Bank A/c
18 Machinery purchased on credit Machinery A/c Dr.
To Creditor’s A/c
19 Cash received from a debtor Cash/Bank A/c Dr.
To Debtor’s A/c
20 Cash paid to a creditor Creditor’s A/c Dr.
To Cash/Bank A/c
21 Discount allowed to a debtor Discount Allowed A/c Dr.
To Debtor’s A/c
22 Discount received from a creditor Creditor’s A/c Dr.
To Discount Received A/c
23 Bad debt written off Bad Debts A/c Dr.
To Debtor’s A/c
24 Bad debt recovered Cash/Bank A/c Dr.
To Bad Debts Recovered A/c
25 Depreciation charged on machinery Depreciation A/c Dr.
To Machinery A/c

Journal Entries 26–50: Income, Expenses and Adjustments

No. Transaction Journal Entry
26 Interest received Cash/Bank A/c Dr.
To Interest Received A/c
27 Interest paid Interest Expense A/c Dr.
To Cash/Bank A/c
28 Commission received Cash/Bank A/c Dr.
To Commission Received A/c
29 Cash withdrawn by owner Drawings A/c Dr.
To Cash/Bank A/c
30 Goods withdrawn by owner for personal use Drawings A/c Dr.
To Purchases A/c
31 Additional capital introduced in cash Cash/Bank A/c Dr.
To Capital A/c
32 Loan received in cash or bank Cash/Bank A/c Dr.
To Loan A/c
33 Loan repaid Loan A/c Dr.
To Cash/Bank A/c
34 Bank charges deducted by bank Bank Charges A/c Dr.
To Bank A/c
35 Advertisement expenses paid Advertisement A/c Dr.
To Cash/Bank A/c
36 Freight expenses paid Freight A/c Dr.
To Cash/Bank A/c
37 Repairs expenses paid Repairs A/c Dr.
To Cash/Bank A/c
38 Printing expenses paid Printing Expenses A/c Dr.
To Cash/Bank A/c
39 Telephone expenses paid Telephone Expenses A/c Dr.
To Cash/Bank A/c
40 Postage expenses paid Postage Expenses A/c Dr.
To Cash/Bank A/c
41 Bill received and accepted by debtor Bills Receivable A/c Dr.
To Debtor’s A/c
42 Bill accepted in favour of creditor Creditor’s A/c Dr.
To Bills Payable A/c
43 Bill receivable honoured at maturity Cash/Bank A/c Dr.
To Bills Receivable A/c
44 Bill payable paid at maturity Bills Payable A/c Dr.
To Cash/Bank A/c
45 Bill receivable dishonoured Debtor’s A/c Dr.
To Bills Receivable A/c
46 Salary outstanding at the end of the year Salary A/c Dr.
To Outstanding Salary A/c
47 Rent paid in advance Prepaid Rent A/c Dr.
To Rent A/c
48 Interest earned but not yet received Accrued Interest A/c Dr.
To Interest Received A/c
49 Income received in advance Income A/c Dr.
To Unearned Income A/c
50 Provision created for doubtful debts Profit and Loss A/c Dr.
To Provision for Doubtful Debts A/c

Journal Entries 51–75: Capital, Assets and Special Transactions

No. Transaction Journal Entry
51 Interest charged on drawings Drawings A/c Dr.
To Interest on Drawings A/c
52 Interest allowed on capital Interest on Capital A/c Dr.
To Capital A/c
53 Goods returned by customer Sales Return A/c Dr.
To Debtor’s A/c
54 Goods returned to supplier Creditor’s A/c Dr.
To Purchase Return A/c
55 Cash sales amount deposited into bank Bank A/c Dr.
To Cash A/c
56 Cash withdrawn from bank for office use Cash A/c Dr.
To Bank A/c
57 Investment purchased for cash Investment A/c Dr.
To Cash/Bank A/c
58 Dividend received Cash/Bank A/c Dr.
To Dividend Received A/c
59 Donation paid Donation A/c Dr.
To Cash/Bank A/c
60 Charity paid Charity A/c Dr.
To Cash/Bank A/c
61 Building purchased for cash Building A/c Dr.
To Cash/Bank A/c
62 Furniture sold at book value Cash/Bank A/c Dr.
To Furniture A/c
63 Asset sold at a loss Cash/Bank A/c Dr.
Loss on Sale of Asset A/c Dr.
To Asset A/c
64 Asset sold at a profit Cash/Bank A/c Dr.
To Asset A/c
To Profit on Sale of Asset A/c
65 Cash stolen from the business Loss by Theft A/c Dr.
To Cash A/c
66 Goods destroyed by fire Loss by Fire A/c Dr.
To Purchases/Stock A/c
67 Insurance claim received Cash/Bank A/c Dr.
To Insurance Claim Receivable A/c
68 Owner’s personal expenses paid by business Drawings A/c Dr.
To Cash/Bank A/c
69 Capital converted into a loan Capital A/c Dr.
To Loan A/c
70 Loan converted into capital Loan A/c Dr.
To Capital A/c
71 Goodwill purchased Goodwill A/c Dr.
To Cash/Bank A/c
72 Patent purchased Patent A/c Dr.
To Cash/Bank A/c
73 Trademark purchased Trademark A/c Dr.
To Cash/Bank A/c
74 Cash withdrawn for personal use Drawings A/c Dr.
To Cash/Bank A/c
75 Interest paid on loan Interest on Loan A/c Dr.
To Cash/Bank A/c

Journal Entries 76–100: Final Accounts and Advanced Adjustments

No. Transaction Journal Entry
76 Interest received on investment Cash/Bank A/c Dr.
To Interest on Investment A/c
77 Audit fee paid Audit Fee A/c Dr.
To Cash/Bank A/c
78 Legal charges paid Legal Charges A/c Dr.
To Cash/Bank A/c
79 Travelling expenses paid Travelling Expenses A/c Dr.
To Cash/Bank A/c
80 Miscellaneous expenses paid Miscellaneous Expenses A/c Dr.
To Cash/Bank A/c
81 Purchases transferred to Trading Account Trading A/c Dr.
To Purchases A/c
82 Sales transferred to Trading Account Sales A/c Dr.
To Trading A/c
83 Gross profit transferred Trading A/c Dr.
To Profit and Loss A/c
84 Gross loss transferred Profit and Loss A/c Dr.
To Trading A/c
85 Net profit transferred to capital Profit and Loss A/c Dr.
To Capital A/c
86 Net loss transferred to capital Capital A/c Dr.
To Profit and Loss A/c
87 Closing stock recorded Closing Stock A/c Dr.
To Trading A/c
88 Rent outstanding Rent A/c Dr.
To Outstanding Rent A/c
89 Insurance paid in advance Prepaid Insurance A/c Dr.
To Insurance A/c
90 Commission earned but not received Accrued Commission A/c Dr.
To Commission Received A/c
91 Income tax paid by a sole proprietor Drawings A/c Dr.
To Cash/Bank A/c
92 Input VAT or GST paid on purchases Input VAT/GST A/c Dr.
To Cash/Bank A/c
93 Bank loan received Bank A/c Dr.
To Bank Loan A/c
94 Office equipment purchased on credit Office Equipment A/c Dr.
To Creditor’s A/c
95 Stationery purchased for cash Stationery A/c Dr.
To Cash/Bank A/c
96 Interest due but not yet paid Interest Expense A/c Dr.
To Outstanding Interest A/c
97 Commission due but not yet received Commission Receivable A/c Dr.
To Commission Income A/c
98 Owner introduced furniture as capital Furniture A/c Dr.
To Capital A/c
99 Old machinery sold for cash at book value Cash/Bank A/c Dr.
To Machinery A/c
100 Closing capital balance in the ledger Capital A/c Dr.
To Balance c/d
Important note: Entry number 100 is mainly a ledger-balancing treatment rather than a normal journal entry. Some institutions may also use slightly different account titles for selected adjustments, VAT, provisions and final-account transfers.

Important Accounting Abbreviations

  • Dr. means Debit.
  • Cr. means Credit.
  • A/c means Account.
  • To is written before the credited account.
  • The total debit amount must always be equal to the total credit amount.

How to Prepare Journal Entries Correctly

Example: Furniture Purchased for Cash

Furniture A/c Dr.
    To Cash A/c

Frequently Asked Questions

What is a journal entry?

A journal entry is the first formal record of a financial transaction in accounting. It identifies the accounts to be debited and credited.

Why are journal entries important for BBS students?

Journal entries are required to prepare ledger accounts, trial balance, trading account, profit and loss account and balance sheet. A strong understanding of journal entries makes other accounting chapters easier.

What is the difference between debit and credit?

Debit is recorded on the left side of an account, while credit is recorded on the right side. The effect of debit and credit depends on the type of account.

Is drawings a business expense?

No. Drawings represent cash, goods or other assets withdrawn by the owner for personal use. Drawings reduce the owner’s capital.

How is a credit purchase of goods recorded?

Purchases A/c Dr.
To Creditor’s A/c

How is a credit purchase of an asset recorded?

When an asset such as furniture or machinery is purchased on credit, the relevant asset account is debited instead of the Purchases Account.

Conclusion

These 100 Important Journal Entries for BBS 1st Year cover most of the transactions commonly asked in Financial Accounting and Analysis examinations. Students should not only memorize the entries but also understand why each account is debited or credited.

Regular practice will help you solve journal, ledger, trial balance and final account questions more accurately.

For more BBS notes, model questions, old question papers and exam preparation materials, visit SanKush Edits.

Study Smart. Score Better.