Principles of Accounting
Principles of Accounting
C a s h A / c 0 C r
A c c o u n t s
I n it ia l S t a t e : A s s u m e N o b a la n c e s
S B 0 1 1 0 0 C r
C a s h = 1 0 0
C a s h A / c 1 0 0 D r
A c c o u n t
E v e n t : A s s u m e C r o f 1 0 0 b y c a s h f o r S B 0 1 .
A p p ly t h e p r in c ip le - C r t h e G iv e r , D r t h e r e c e iv e r
N o t e : t h e p h y s ic a l c a s h w it h t h e b a n k m a t c h e s t h e e n t r ie s in t h
• Cash Withdrawal
Account Amount Part Date Particulars
tran
Type
SB-01 100 Dr 10-Aug-2004 Cash Withdrawn by
Customer
Bank-Cash- 100 Cr 10-Aug-2004 Cash to SB-01
Acct
Win in the flat world
Entries to Account for the transaction
• Fund transfer between two accounts
Account Amount Part Date Particulars
tran
Type
SB-01 100 Cr 10-Aug- Received from SB-02
2004
SB-02 100 Dr 10-Aug- Xfer to SB-01
2004
• Payment of interest to a Term Deposit
Account Amount Part Date Particulars
tran
Type
TD-01 100 Cr 10-Aug-2004 By Interest
P&L 100 Dr 10-Aug-2004 Int for TD-01