"ACCOUNTS BUSINESS SCENARIOS EXCERSIES WITH SOLUTIONS PARTJOURNAL:-Day to day posting entries in journal in chronological order DEFINITION:The Book in which the business Transactions are Recorded in a Chronological order, AfterAnalaysingThem and classifying the benefits according to principles of debit And credit is calledJournal…Advantages:1. Journal helps in preparation of Final Accounts at end of the yearExplanation:Final Accounts Means Balance Sheet having Liabilites and Assets …Financial Position of theBusiness Man shows balancesheet…2.When any Different Arises with regard to past Transactions, The trader can satisfy byexplaining Dates and Circumstances of differences…l. Journal Entries Having Serial Wise Date wise Transaction with Ledger Folio Number…Trader Can get particular transaction easily track through Date wise and Serial Wise…usingL.F.No..Business Scenario: Peter Starts Own Consultancy Business in USA …Prepare JournalEntries Based Peter Consultancy Business Scenario1.Peter Started Super Consultancy Started with Cash ---4,00,000 $Entry:Cash A/c Dr To Capital A/c Narration:Business Transaction Entry Meaning (Being SUPER CONSULANTY BUSINESS STARTED WITH CASH) Note :--Real Account Concept Applied In This Business Transactions2.PETER NEED SOFTWARE TO RUN AND RECORD SUPER CONSULTANCYBUSINESS TRANSACTIONS POSTINGS AND REPORTS PURPOSE TOPURCHASE SAP ERP(SYSTEM APPLICATION PRODUCT IN DATAPROCESSING & ENTERPISE RESOURCE PLANNING) SOFTWARE…ENTRY:SAP ERP A/C DR TO CASH A/CNARRATION : (BEING SAP ERP SOFTWARE PURCHASED THROUGH CASH)(Hear Real Account Golden Principle Applied) 3.Peter Need a Bank Account to Run Super Consultancy Business…Open A new BankAccount in Hdfc …to DEPOSIT CASH 1,50,000 $Entry:Hdfc Bank A/c Dr 20,50,000 $To cash (cr) 20,50,000 $Narration:(peter deposited cash in Hdfc Hdfc Bank super consultancy businessoperations running purpose)4. peter issue a cheque forsecurity deposit super consultancy business..rent for the shoppurpose..Entry:Security Deposit (office ) drTo Idbi Bank A/cNarration (super consultancy business issue a cheque for security deposit for officeRent) 5. SUPER CONSULTANCY BUSINESS(PETER) PURCHASE FIXED ASSETSTHROUGH CHEQUECell Phone: 12,000 $Furniture and Fittings 20,000 $Air Conditioner –30000$Electrical Fittings:--25000$Entry:Cell Phone A/C Dr 12,000 $Furniture and Fittings A/c Dr 20000$Air Conditioner A/c Dr 30000$Electrical Fittings A/C Dr 25000 $To HDFC Bank A/c 87000 $Narration:(Being Super Consultancy purchase fixed Assets through Cheque)6. Super Consultancy PAID SECURITY DEPOSIT FOR PHONE THROUGH CASH ENTRY:SECURITY DEPOSIT PHONE A/C DR TO CASH A/C(BEING SUPER CONSULTANCY BUSINESS PAID CASH FOR SECURITYDEPOSIT FOR PHONE ) "