1. Unit- 3

2. TYPE OF ACCOUNTS AND ITS RULES: There are three types of accounts namely Personal account, Real account and Nominal account. Personal account: It is related to the persons. A person means an individual, company, firm, association of persons, hospitals, bank, educational institutions etc. Rule of journalizing for Personal account: “Debit the receiver and Credit the giver”. Con… 2

3. Real account: It is related to the goods, assets and property. For example: Cash, Building, Plant, Furniture etc. Rule of journalizing for Real account: “Debit what comes in and Credit what goes out”. Nominal account: It is related with the losses and expenses, gains and incomes. For example: Salary, wages, rent etc. Con… 3

4. Rule of journalizing for Nominal account: “Debit all the losses and expenses and credit all the gains and incomes”. Note: The above three rules are also known as Golden Rule of accounting. Con… 4

5. Journalizing (Recording) The specimen journal is as follows: Journal entries in the book of…… (Name of the person ) The journal has five columns, viz. (1) Date; (2) Particulars; (3) Ledger Folio; (4) Amount (Debit); and (5) Amount (Credit) and a brief explanation of the transaction by way of narration is given after passing the journal entry. Con… DateParticularsL.F.Amount(Dr.)Amount(Cr.) 12345 5

6. Question.1 – How many columns are in Journal? Answer - There is five columns in Journal. Question.2 – Write the name of the columns of Journal. Answer – (i) Date (ii) Particulars (iii) L.F. (iv) Amount (Dr.) (v) Amount (Cr.) Question.3 – Draw the Performa of Journal. Answer - Con… 6

7. DateParticularsL.F.Amount(Dr.)Amount(Cr.) 12345 7

8. Question - Journalize the following transactions in the books of “Ahmad”. 2013 Jan.1 Started business with cash SR. 10000/- 2013 Jan- 01 Cash a/c Dr. 10000 To Capital a/c 10000 (Being business started with cash) Con… 8

9. Jan. 1 Purchased goods SR. 1000/- 2013 Jan-01 Purchases a/c Dr. 1000 To Cash a/c 1000 (Being goods purchased for cash) Con…. 9

10. Jan. 3 Purchased goods from Adil on credit SR. 1100/- 2013 Jan-03 Purchases a/c Dr. 1100 To Adil 1100 (Being goods purchased from Adil on credit) Con… 10

11. Jan. 4 Sold goods SR. 2500/- 2013 Jan-04 Cash a/c Dr. 2500 To Sales a/c 2500 (Being goods sold for cash) Con… 11

12. Jan. 7 Sold goods to Mr. Mohammad on credit SR. 2300/- 2013 Jan-07 Mohammad Dr. 2300 To Sales a/c 2300 (Being goods sold to Mohammad on credit) Con… 12

13. Jan. 10 Cash paid to Adil SR. 1100 2013 Jan-10 Adil Dr. 1100 To Cash a/c1100 (Being cash paid to Adil) Con… 13

14. Jan. 13 Cash received from Mr. Mohammad SR. 2300 2013 Jan-13 Cash a/c Dr. 2300 To Mohammad 2300 (Being cash received from Mohammad) Con… 14

15. Jan. 15 Cash deposited into bank SR. 1200/- 2013 Jan-15 Bank a/c Dr. 1200 To Cash a/c 1200 (Being cash deposited into bank) Con… 15

16. Jan. 18 Cash withdrawn from bank SR. 900/- 2013 Jan-18 Cash a/c Dr. 900 To Bank a/c 900 (Being cash withdrawn from bank) Con… 16

17. Jan. 19 Purchased furniture for cash SR. 5000/- 2013 Jan-19 Furniture a/c Dr. 5000 To cash a/c 5000 (Being furniture purchased for cash) Con… 17

18. Jan. 22 Purchased building for cash SR. 6000/- 2013 Jan-22 Building a/c Dr. 6000 To cash a/c 6000 (Being building purchased for cash) Con… 18

19. Jan. 24 Paid salaries SR. 3500/- 2013 Jan-24 Salaries a/c Dr. 3500 To cash a/c 3500 (Being Salaries paid) Con… 19

20. Jan. 25 Paid rent SR. 1500/- 2013 Jan-25 Rent a/c Dr. 1500 To cash a/c 1500 (Being rent paid) Con… 20

21. Jan. 26 Paid wages SR. 800/- 2013 Jan-26 Wages a/c Dr. 800 To cash a/c800 (Being wages paid) Con… 21

22. Jan. 28 Received interest SR. 600 /- 2013 Jan-28 Cash a/c Dr. 600 To Interest a/c600 (Being interest received) Con… 22

23. Jan. 30 Commission received SR. 500 /- 2013 Jan-30 Cash a/c Dr. 500 To Commission a/c 500 (Being commission received) Con… 23