A journal entry format with columns explained, the rules of debit and credit, narration examples and twelve common journal entries for sales, purchases, expenses and adjustments.
Journal entry format
| Date | Particulars | L.F. | Debit | Credit |
|---|---|---|---|---|
| 01 Apr | Cash A/c Dr To Capital A/c (Being business started with cash) | 5,00,000.00 | 5,00,000.00 | |
| 03 Apr | Purchases A/c Dr To Shah Traders A/c (Being goods bought on credit) | 80,000.00 | 80,000.00 | |
| 05 Apr | Neelkanth Builders A/c Dr To Sales A/c (Being goods sold on credit, INV-001) | 41,622.00 | 41,622.00 | |
| 10 Apr | Rent A/c Dr To Bank A/c (Being rent paid for April) | 18,000.00 | 18,000.00 |
Each entry: the debit account first with “Dr”, the credit account on the next line starting with “To”, the amounts, and a narration in brackets starting with “Being”.
Rules of debit and credit
| Account type | Debit | Credit |
|---|---|---|
| Personal (people, firms) | The receiver | The giver |
| Real (assets) | What comes in | What goes out |
| Nominal (expenses, incomes) | Expenses and losses | Incomes and gains |
The modern approach says the same thing by type: assets and expenses increase on the debit side; liabilities, capital and income increase on the credit side.
12 common journal entries
| Transaction | Entry |
|---|---|
| Goods sold for cash | Cash A/c Dr, To Sales A/c |
| Goods bought on credit | Purchases A/c Dr, To Supplier A/c |
| Payment to supplier by bank | Supplier A/c Dr, To Bank A/c |
| Cash received from customer | Cash A/c Dr, To Customer A/c |
| Salary paid | Salary A/c Dr, To Cash/Bank A/c |
| Owner withdraws cash | Drawings A/c Dr, To Cash A/c |
| Depreciation charged | Depreciation A/c Dr, To Asset A/c |
| Outstanding rent | Rent A/c Dr, To Outstanding Rent A/c |
| Prepaid insurance | Prepaid Insurance A/c Dr, To Insurance A/c |
| Bad debt written off | Bad Debts A/c Dr, To Customer A/c |
| Cash deposited in bank (contra) | Bank A/c Dr, To Cash A/c |
| Goods taken for personal use | Drawings A/c Dr, To Purchases A/c |
Journal entries with GST
| Transaction | Entry |
|---|---|
| Credit sale 10,000 plus 18% GST, same state | Customer Dr 11,800; To Sales 10,000; To Output CGST 900; To Output SGST 900 |
| Credit purchase 5,000 plus 18% GST, other state | Purchases Dr 5,000; Input IGST Dr 900; To Supplier 5,900 |
| Sales return 1,000 plus GST, same state | Sales Returns Dr 1,000; Output CGST Dr 90; Output SGST Dr 90; To Customer 1,180 |
Opening entry
At the start of a new year, an opening entry brings forward balances: all asset accounts Dr, To all liability accounts, To Capital A/c (the difference). Narration: Being balances brought forward from the previous year.
Downloadable Excel
Frequently asked questions
What is a narration?
A one line explanation under each entry, usually starting with “Being”.
What is a compound entry?
An entry with more than one debit or credit, for example a sale with GST: Customer Dr, To Sales, To Output CGST, To Output SGST.
Checked and updated 14 Oct 2026. Independent template site; not tax or legal advice.