Page 63 - DCOM101_FINANCIAL_ACCOUNTING_I

Unit 6: Preparation of Journal

8. Jan 31, 2006 Office Rent paid ` 500 Notes
Date Divisions of Transactions A/cs involved Golden Rule Registration
Offi ce Rent-Expenses- Nominal A/c- Expenses- Rev- Debit all expenses and
Revenue Expense-Paid out enue expenses-incurred by the losses
of the usage of the asset-to fi rm-out of the usage of the asset
the owner for the specifi ed period
Cash resources paid- RealA/c-Movement of Assets- Credit what goes out
Jan 31,2006
movement of assets-move- moving out of the fi rm-Cash
ment out of the fi rm-cash resources paid
resources moving from

the firm to the owner of
the asset
This transaction has got two different accounts, viz Nominal A/c and Real A/c:
L.F. ` `
Jan 31, 2006 Office Rent A/c Dr 500

To Cash A/c 500
Being office rent paid

9. Feb 2, 2006 Interim Cash Dividend received ` 3000
Date Divisions of Transactions A/cs involved Golden Rule Registration
Cash resource in-movement Real A/c- Movement of assets- Debit what comes in
in – movement of cash movement of cash resources from
resource into the fi rm another company to the business
enterprise-while collecting the
payment of dividend
Feb 2, 2006
Interim Cash Dividend- Nominal A/c –source of the Credit all incomes and
source of income for the income- receipt of Interim cash gains
generation/circulation of dividend-Revenue income
additional source of cash
resources.
This transaction has got two different accounts, viz Real A/c and Nominal A/c:
L.F. ` `
Feb 2, 2006 Cash A/c Dr 3,000
To Interim Dividend 3,000
Being cash interim dividend received
10. Feb 8,2006 Cash withdrawn from bank ` 2,000:
Date Divisions of Transactions A/cs involved Golden Rule Registration
Cash Resource- withdrawal Real A/c-movement of assets- Debit what comes in
from the account-movement movement of cash resources-with-
of the cash resources in-from drawal of cash from the bank
the banker to the fi rm
Bank-Institution-Person of Personal A/c-Giver of the cash Credit the giver
Feb 8,2006
legal relationship-giver of resources – from the bank account-
the cash resources from the person of legal relationship
account
This transaction has got two different accounts, viz Real A/c and Personal A/c:

L.F. ` `
Feb 8,2006 Cash A/c Dr 2,000
To Bank 2,000
Being cash withdrawn from the bank

Classification of transactions is being done only on the basis of preparing the ledger accounts.

The accounts are classified on the basis of nature and characteristics.

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