Go to Accounting > Journal Entry > New Journal. For example, when the company spends cash to purchase a new vehicle, the cash account is decreased or credited and the vehicle account is increased or debited. Journal entries are used to record business transactions.The following journal entry examples provide an outline of the more common entries encountered. Explanation: Bank is an Asset, on receipt of cash from Bank,Bank’s A/c would be credited, as there is a decrease inBank Balance, which is an asset . The company paid a 50% down payment and the balance will be paid after 60 days. Post Journal entry, at the time of loan repayment. It is impossible to provide a complete set of journal entries that address every variation on every situation, since there are thousands of possible entries. Post Journal entry at the time of loan received. Frequent journal entries are usually recorded in specialized journals, for example, sales journal and purchases journal. The following example illustrates how to record journal entries: Example. Provision Expense Journal Entry. For example, your bank statement shows that your ending balance is $11,450, while your G/L balance according to your trial balance is $10,850. More Examples of Journal Entries Accounting Equation Double Entry Recording of Accounting Transactions Debit Accounts Credit Accounts Asset Accounts Liability Accounts ... Cash and bank deposits. Transaction #4: On December 7, the company acquired service equipment for $16,000. This will result in a compound journal entry. Accounts receivable. This statement is used by auditors to perform the company’s year-end auditing. Notes receivable. It should be noted that keeping a general journal for all entries is perfectly acceptable. The percentage of the provision that we use above is just an example. Allowance for doubtful accounts Impairment of a Loan. Record the interest expense. So, for example, all the sales will be booked in the sales journal, purchases in the purchase ledger, adjusting and other journal entries in the general journal and cash/bank entries in the cash/bank journal entries which are also known as the cash book. After recording the journal entries for the company’s book adjustments, a bank reconciliation statement should be produced to reflect all the changes to cash balances for each month. Provide Bank name in NAME and select Bank account under the Group dropdown; Click Save. Learn how to journalize the entries required at the end of a bank reconciliation. 2. Question 1 : – What would be the Journal Entry for withdrawal of Rs. 10,000 in Cash from Bank ? Accounting Journal Entry Examples. 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