Understanding the basic journal entries is essential for anyone preparing for accounting job interview. Below are common entries with examples and simple explanations.
1. Capital Introduced in the Business
Date
Account Title
Debit ($)
Credit ($)
Jan 1
Cash/Bank A/c Dr
20,000
To Capital
20,000
record the capital introduced by the owner.
2. Purchase of Inventory (on Credit)
Date
Account Title
Debit ($)
Credit ($)
Jan 5
Inventory/Purchase A/c Dr
5,000
To Accounts Payable
5,000
record purchase of goods on credit.
3. Cash Sales Made
Date
Account Title
Debit ($)
Credit ($)
Jan 10
Cash A/c Dr
3,000
To Sales Revenue
3,000
record cash sales to a customer.
4. Credit Sales Made to Customer
Date
Account Title
Debit ($)
Credit ($)
Jan 12
Accounts Receivable A/c Dr
4,000
To Sales Revenue
4,000
record credit sales to a customer.
5. Payment of Expenses (e.g. Rent)
Date
Account Title
Debit ($)
Credit ($)
Jan 15
Rent Expense A/c Dr
800
To Cash
800
record rent paid in cash.
6. Receiving Cash from Debtor
Date
Account Title
Debit ($)
Credit ($)
Jan 18
Cash A/c Dr
4,000
To Accounts Receivable
4,000
record collection from customer.
8. Salary Paid
Date
Account Title
Debit ($)
Credit ($)
Jan 25
Salaries Expense A/c Dr
2,000
To Bank
2,000
record salary payment through bank.
Tips for Interviews:
Always know which accounts are debited and credited.
Be ready to explain the logic behind each entry.
Practice basic entries + adjustments (e.g., prepaid expenses, depreciation).