( Narration )

( Receipt ) Narrations

1) M/s XYZ Traders

Being cash received from M/s XYZ Traders
2) M/s XYZ Traders

Being cheque received from M/s XYZ Traders
3) M/s XYZ Traders NEFT / RTGS amount

Being amount received in bank from M/s XYZ Traders through NEFT / RTGS
4) M/s XYZ Traders 2% cash discount
Cash A/c
Dr.
980
Discount given A/c Dr.
20
To M/s XYZ Traders
(Cr.)
1000
( Being amount received from M/s XYZ Traders after deducting 2% cash discount )
5) PPF

Being interest received on PPF A/c as per passbook / bank statement

( Payment ) Narrations
1) M/s XYZ Traders 12 1/5/13
Being cash paid to M/s XYZ Traders vide receipt no. 012 dated 1/5/13
2) M/s XYZ Traders 24 10/5/13
Being cheque issued to M/s XYZ Traders vide receipt no. 024 dated 10/5/13

3) M/s XYZ Traders NEFT / RTGS

Being amount paid to M/s XYZ Traders from bank through NEFT / RTGS
4) M/s XYZ Traders

2% cash discount

45 20/5/13

M/s XYZ Traders
Dr.
1000
To Cash A/c
(Cr.)
980
To Discount received A/c
(Cr.)
20
( Being cash paid to M/s XYZ Traders after deducting 2% cash discount vide receipt no.
045 dated 20/5/13 )
5)
Being advance given to Suresh

6) LIC Premium / PPF / Infra Bond Cash / Bank

LIC Premium / PPF / Infra Bond A/c
Dr.
1000
To Cash / Bank A/c
(Cr.)
1000
( Being amount paid for LIC Premium / PPF / Infra Bond in cash / through bank )

( Banking ) Narrations
1)
Being cash deposited in bank
2)
Being cash withdrawn from bank
3) Bank charges ( Cheque book charges, Cheque return charges etc.)
Bank charge
Dr.
1000
To State Bank of India
(Cr.)
1000
( Being bank charges deducted by bank as per bank statement / passbook )
4) interest
State Bank of India
Dr.
1000
To Bank interest received (Cr.)
1000
( Being interest credited by bank as per bank statement / passbook )
5) interest charge
Bank interest paid
Dr.
1000
To State Bank of India
(Cr.)
1000
( Being interest charged by bank on loan for the period 1-3-13 To 31-3-13 as per bank
statement )
6) bank charge

State Bank of India
Dr.
1000
To Bank charge
(Cr.)
1000
( Being bank charges, earlier deducted, reversed by bank as per bank statement )
7) M/s XYZ Company Ltd.

State Bank of India
Dr.
1000
To Dividend A/c
(Cr.)
1000
( Being dividend received from M/s XYZ Company Ltd. directly deposited in bank A/c
as per bank statement )
8) M/s XYZ Traders / ( Return / Dishonour )

M/s XYZ Traders
Dr.
1000
To State Bank of India
(Cr.)
1000
( Being cheque received from M/s XYZ Traders returned / dishonoured by bank )
9) Term loan

Being term loan received from bank

10) , 2013 loan installment

Being loan installment for the month March, 2013 paid to bank
11) Assessment year 2013-14 income tax refund /

Being income tax refund for the assessment year 2013-14 deposited / received in bank

( Capital ) Narrations
1)
Being cash brought in business as capital
2)
Being cash withdrawn for personal use
3)
Being goods withdrawn for personal use
4) /
Being goods / furniture brought in business as capital
5) 31st march, 2013

Proprietor 15%

Interest A/c
Dr.
5000
To Capital A/c
(Cr.)
5000
( Being interest @ 15% p.a. credited to proprietors capital A/c for the year ending on
31st March, 2013 )
6) 31st march, 2013

partners 15%

Interest A/c
Dr.
10000
To Partners XYZ Capital A/c (Cr.)
5000
To Partners ABC Capital A/c (Cr.)
5000
( Being interest @15% p.a. credited to partners capital A/c for the year ending on 31st
March, 2013 )
7) Proprietor / Partners , 2013
Being proprietors / partners salary for the month Jan., 2013 credited to his Capital A/c
8) Profit & Loss A/c capital A/c transfer
Being balance of Profit & Loss A/c for the year ending on 31st March 2013 transferred to
Proprietors / Partners Capital A/c

( Purchase ) Narration
1) M/s XYZ Traders
Being goods purchased on credit from M/s XYZ Traders

2) M/s XYZ Traders

Being goods purchased for cash from M/s XYZ Traders
3) M/s ABC Traders C form against
Being goods purchased from M/s ABC Traders against C form no. -----

( Purchase Return) Narration

1) M/s XYZ Traders

Being goods returned to M/s XYZ Traders

2) M/s XYZ Traders

Being goods returned to M/s XYZ Traders due to bad quality

3) M/s XYZ Traders
Being goods returned to M/s XYZ Traders for not being as per order

( Sales ) Narration
1) M/s XYZ Traders
Being goods sold to M/s XYZ Traders on credit
2) M/s XYZ Traders
Being goods sold to M/s XYZ Traders for cash
3) M/s ABC Traders C form against
Being goods sold to M/s ABC Traders against C form no. ---

( Sales Return) Narration

1) M/s ABC Traders
Being goods returned by M/s ABC Traders
2) M/s ABC Traders
Being goods returned by M/s ABC Traders due to bad quality
3) M/s ABC Traders
Being goods returned by M/s ABC Traders for not being as per order

( Assets ) Narration

1) M/s Singh Computers

Being computer purchased from M/s Singh Computers vide invoice no. 021 dt. 31-3-13

2)
Being old furniture sold to Mr. Rakesh Mishra
3) 15% p.a. Depreciation
Being depreciation charged @15% p.a. for the year ending on 31st March, 2013
4) Assets

Loss by fire A/c

Dr.
1000
To Assets
(Cr.)
1000
( Being assets destroyed due to fire )

Unsecured loan Narrations

1) Unsecured Loan

Being loan received from Mr. Ram Sharma
2)

loan @ 15% 01/04/12 31/03/13

Interest paid A/c
Dr.
10000
To Mr. Ram Sharmas Loan A/c
(Cr.)
10000
( Being interest @15% p.a. for the period from 1/4/12 to 31/3/13 credited to Mr. Ram
sharmas loan A/c )
3) loan
Being loan paid to Mr. Ram Sharma by cheque

loan Narrations
1) loan
Being loan given to Mr. Shyam Yadav
2) loan 15%
debit
Shyam Yadavs Loan A/c
Dr.
1000
To Interest Receivable
(Cr.)
1000
( Being interest @ 15% p.a. for the period 01/04/12 to 31/3/13 debited to Mr. Shyam
Yadavs Loan A/c )
3) loan

Being loan amount received from Mr. Shyam Yadav by cheque

Duties & Taxes Narrations

VAT / Sales Tax / Entry Tax
1) VAT
Being VAT deposited. Challan no. ---- dated ---2) Penalty / interest VAT
Being VAT deposited along with penalty / interest of Rs. 500. Challan no. ---- dated-3) Assessment year 2008-09 VAT

Being VAT refund received for the assessment year 2008-09

4) Entry tax
Being entry tax deposited. Challan no. ...... Dated.......
5) Sales tax
Being sales tax deposited. Challan no. ...... Dated.......

TDS ( Tax Deducted at Source ) / Advance Tax / Income Tax

1) M/s Singh Computer 10% TDS
State Bank of India
Dr.
18000
TDS A/c
Dr.
2000
To m/s singh computers (Cr.)
20000
( Being cheque received from M/s Singh Computer after deducting TDS @10% )
2) M/s Ashok Traders 10% TDS
M/s Ashok Traders
Dr.
20000
To State Bank of India
(Cr.)
18000
To TDS A/c
(Cr.)
2000
( Being cheque paid To M/s Ashok Traders after deducting TDS @10% )
3) TDS
Being TDS amount deposited. Challan no......dated.....
4) Advance tax
Being advance tax for the year 2013-14 paid. Challan no. ..... dated......
5) Assessment year 2013 - 14 income tax
Being income tax paid as per the return of assessment year 2013-14
6) 31st March 2013

Proprietor / Partners Self Assessment

Tax
Being self assessment tax of proprietor / partners paid for the year ending on 31st March,
2013

Direct / Indirect Expenses Narrations

1) 2013
Being salary paid to Ramesh for the month Sep., 2013
2) advance against adjust
Salary A/c
Dr.
5000
To Rameshs A/c
(Cr.)
5000
( Being salary adjusted for the month Sep., 2013 against advance amount paid to him )
3) National Insurance Co. Ltd.
Being insurance premium paid through cheque to national insurance co. Ltd.
4) Ok Transport ( Freight )
Being freight paid to Ok Transport vide receipt no. 124 dated 30/09/12
5) Oct., 2013
Being office rent for the month Oct. 2013 paid to Mr. Suresh Sharma
6) Conveyance / Postage / Mobile Bill / Fuel Exp
Being conveyance / postage / mobile bill / fuel expenses paid
7)
Being telephone expenses paid
Repair & Maintenance, Electricity Exp., Property Tax, Sundry Exp.

Provision Narrations
1) Audit Fee
Being provision made for audit fee for the year ending on 31st March, 2013
2) Legal Fee
Being provision made for legal fee for the year ended 31st March, 2013

Outstanding Expenses (
) Narrations
1) Salary payable
Being salary payable for the month March, 2013 transferred to Salary Payable A/c
2) Electricity / Telephone Exp. Payable
Being electricity / telephone exp. payable for the month March, 2013 transferred to
Electricity / Telephone Exp. Payable A/c

Bad debts Narrations

1) M/s XYZ Traders ( Bad
debts A/c)
Being balance of M/s XYZ Traders transferred to Bad Debts A/c
2) M/s XYZ Traders
Being bad debts recovered from M/s XYZ Traders

Branch Head Office

transaction Narrations
1) Vijaynagar branch transfer
Being goods transferred to Vijaynagar branch
2) Vijaynagar branch /

Being cheque / cash received from Vijaynagar branch
3) Vijaynagar branch behalf Ok Transport
Vijaynagar branch
Dr.
1000
To cash A/c
(Cr.)
1000
( Being freight paid to Ok Transport on behalf of Vijaynagar branch. Vide receipt no. 08 )
4) Vijaynagar branch
Being damaged goods returned by Vijaynagar branch

Professional ( CA, Doctor, Lawyer etc. ) Narrations

1) M/s XYZ Consultant , 2013

Being salary received from M/s XYZ Consultant for the month Sep., 2013
2) Professional Tax / Membership Fee / Conference Fee
Being Professional Tax / Membership Fee / Conference Fee paid through bank / cash
3) Audit Fee / Legal Fee

Being audit fee / legal fee received

Credit note voucher Narrations

1) Rate difference M/s ABC Traders
Being discount given to M/s ABC Traders due to rate difference against our bill no..
2) M/s ABC Traders

Being discount given to M/s ABC Traders as the quantity was less than shown in the bill

3)

M/s ABC Traders

Being discount given to M/s ABC Traders as the quality of sold goods was inferior
4) Target M/s ABC Traders 1% incentive
Being 1% incentive given to M/s ABC Traders against target achievement
5) M/s ABC Traders 2% cash discount
Being 2% cash discount given to M/s ABC Traders against early payment

6) M/s XYZ Traders 2% p.m.
Being interest paid to M/s XYZ Traders @ 2% pm against bill no....

Debit Note Voucher Narration

1) Rate difference M/s XYZ Traders

Being discount received from M/s XYZ Traders due to rate difference against bill no......
2)

M/s XYZ Traders

Being discount received from M/s XYZ Traders as the quantity was less than shown in
the bill
3)

M/s XYZ Traders

Being discount received from M/s XYZ Traders due to inferior quality of goods
4) Target M/s XYZ Traders 1% incentive

Being 1% incentive received from M/s XYZ Traders against target achievement
5) M/s XYZ Traders 2% cash discount
Being 2% cash discount received from M/s XYZ Traders against early payment

6) M/s ABC Traders 2% p.m.

Being interest received from M/s ABC Traders @ 2% pm against bill no...