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90% of all entries which we have to pass are either for Expenses or incomes

Entries For Expenses

Entries For Incomes

 

 

 

When Invoice Received

Expense Dr

            To Party

 

When Payment Made

Party Dr

         To Bank/Cash

 

 

 

When Invoice Issued

Party Dr

         To Sales/Income

 

When Amount Received

Bank/Cash Dr

          To Party

Party is normally our Sundry Creditor

Party is normally our Sundry Debtor

We can also skip party and do directly

Expense Dr

          To Bank/Cash

(This is for small payments)

We can also skip Party and do directly

Bank /Cash Dr

          To Sales/Incomes

(This is normally for Cash Sales)

   
  1. Accounts and Finance
  2. Step 1 Basic of Accounts -Debits and Credits
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 7 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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