Typically the Debit and credit are accounting terms we have to apply this debit and credit based on the nature of transaction then only we can recognise this is increase this is decrease..
but in secondary stage of accounting ledger posting we have in concept of " TO and By"
everybody telling to means debit by means credit
if I made a deposit to my account rs 18000 means
To Deposit 18000 By
iam I right
tell me how to identify the transaction should disclosure e in ledger posting please give me explanation
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Fundamentals but confused
Replies (37)
This is confusing in the beginning but will be sorted out soon. just check both debit and credit ledgers together, you can understand.
Yes. Correct. Simple method
Purchases ledger is a nominal account- debit all expenses and credit all gains
When you purchase journal entry is Dr. Purchases Cr. Bank
When you post it into purchases ledger
Cr. Bank will be on the debit side because purchases has debit balance.
If you have purchase returns and as it's a credit balance, it'll be shown as Dr. Returns
Similarly, B/D balance will be on the debit side because purchases has a debit balance in the income statement.
Like Mr. Sharath said, keep reading it and remember to first see
1. Where does that item come in the financial statement? Debit or Credit?
2. Then imagine the double entry and post the second line of journal entry into opposite side of that ledger
Just for practice can you do a ledger entry for purchase returns?
Entry is:
Dr. Purchases
Cr. Purchase returns
Also let me know what is wrong here
Dr. Purchase returns
Cr. Purchases
Yes, It's make confusion at training or fresh candidates...
But, You can rectify/short out the confusion with continue training...
If You are enter the deposit with Dr/Cr mode then it's as
Dr. Deposit A/c - 18000(Dr)
Cr. Bank A/c - 18000(Cr)
If You are enter the deposit with To/By mode then it's as
By. Deposit A/c - 18000(Dr)
To. Bank A/c - 18000(Cr)
Check and Update Your Confusion with this...
But, You can rectify/short out the confusion with continue training...
If You are enter the deposit with Dr/Cr mode then it's as
Dr. Deposit A/c - 18000(Dr)
Cr. Bank A/c - 18000(Cr)
If You are enter the deposit with To/By mode then it's as
By. Deposit A/c - 18000(Dr)
To. Bank A/c - 18000(Cr)
Check and Update Your Confusion with this...
Sanjay is asking entries for posting into deposit ledger from journal proper or entries what ever we call it
Don't be Confuse, Also don't confused querist with Your non related replies...
Check out query again...
After that check out Your reply...
After that Modify or Delete Your reply...
Are You understand...??!
(Bcoz, I'm not fluent/(Basic) in English. (dot)
Check out query again...
After that check out Your reply...
After that Modify or Delete Your reply...
Are You understand...??!
(Bcoz, I'm not fluent/(Basic) in English. (dot)
Dont worry. Either ways he learnt both our ways
Ledger or by/to query
If the queries to doesn't understand, he'll call back
Salary provision entry
JV : salary ac Dr.
To salary payable
Ledger : To salary By salary payable
correct
JV : salary ac Dr.
To salary payable
Ledger : To salary By salary payable
correct
Wrong....
The Correct entry as below:
By Salary A/c - XXXX (Dr)
To Salary Payable A/c - XXXX (Cr).
The Correct entry as below:
By Salary A/c - XXXX (Dr)
To Salary Payable A/c - XXXX (Cr).
| Originally posted by : Yasaswi Gomes new | ||
 |
Dont worry. Either ways he learnt both our ways Ledger or by/to query If the queries to doesn't understand, he'll call back |
 |
Yeah May be...
But,
I don't see or learnt like Purchase & Purchase Return in One...
By salary
To salary payable
By means bebit and expense in income statement, asset in balance sheet and reduction of equity statement
To means credit in income statement, liability in balance sheet and increase in equity statement
By example
Income statement
By purchases
Cr bank
Or
By salary
Cr. Salary payable
Or
By interest
Cr. Bank
By means in balance sheet
Dr. Asset
Cr. Bank
Or
Dr. Receivables
Cr. Sales
By means in Equity
By Retained earnings
Cr. Bank
Dividend payed
To means in income statement
By bank/receivable
To sales
Or
By Bank
To Sale of property
To Gain on sale
or
By bank
To commission income
To means in balance sheet
By Depreciation
To asset
Asset value decreased
Or
By Current tax
To Current tax payable
To means in equity
By bank
To capital
Partner introduced new capital
Or
Dr. Asset
Cr. Revaluation gain - equity
Asset gained value
Thanks for teaching both Yaswami sir and raja sir
| Originally posted by : RAJA P M | ||
|
Originally posted by : Yasaswi Gomes new Dont worry. Either ways he learnt both our ways Ledger or by/to query If the queries to doesn't understand, he'll call back Yeah May be... But, I don't see or learnt like Purchase & Purchase Return in One... |
|
Interesting. Now a test to you
Dr. Purchases
Cr. Returns
Or
Dr. Returns
Cr. Purchases
Which came first, hen or egg?
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