Business started with 3,000,000 as capital through cash

• Cash account (Asset) Dr   3,000,000

  • Capital account (Liability) Cr  3,000,000  

or

  Business started with 3,000,000 as capital in Bank

•Bank account (Asset) Dr   3,000,000

•Capital account (Liability) Cr  3,000,000

 45,000 Cash deposit to bank

•Bank account (Asset) Dr  45,000

•Cash account (Asset) Cr  45,000

1,000,000 Cash withdrawn from bank

•Cash account (Asset) Dr  1,000,000

•Bank account (Asset) Cr  1,000,000

Bought office furniture for cash 100,000

•Fixtures and Fittings (Asset) Dr  100,000

•Cash Account (Asset) Cr  100,000

Paid electricity bill in cash 9,000

•Electricity Charges (Expense) Dr  9,000

•Cash Account (Asset) Cr  9,000

Salaries paid by bank transfer  50,000

•Salaries and Wages (Expense) Dr  50,000

•Bank Account (Asset) Cr  50,000

Make provisions, example provision for bad debts for 200,000

•Bad Debts (Expense) Dr  200,000

•Allowance for Bad and Doubtful Debts (Asset) Cr  200,000 

Income Generating Loan disbursed by cheque 500,000

•Loan Portfolio (Asset) Dr  500,000

•Bank Account (Asset) Cr  500,000 

Fees paid by customer in cash 10,000

•Cash Account (Asset) Dr  10,000

•Fees and Charges Received (Income) Cr  10,000

Installment repaid by cash 50,000 of which 3,000 is interest

•Cash Account (Asset) Dr  50,000

•Interest Received (Income) Cr  3,000

•Loan Portfolio (Asset / Principal repaid) Cr  47,000

Loan outstanding written off: 12,000

•Loan Write Offs (Expense) Dr  12,000

•Loan Portfolio (Asset / Principal repaid) Cr  12,000

Deposit  in cash by customer 50,000

•Cash Account (Asset) Dr  50,000

•Savings Portfolio (Liability) Cr     50,000

Withdrawal in cash by customer 20,000

•Savings Portfolio (Liability) Dr  20,000

•Cash Account (Asset) Cr   20,000

Interest of 5,000 paid on savings account

•Interest on deposits (Expense) Dr  5,000

•Savings Portfolio (Liability) Cr     5,000