Journal entries and Ledger accounts are important components in the accounting system of a sole proprietorship business. They help in recording all financial transactions that take place within the business. In this project, we will be discussing 30 journal entries and ledger accounts of a sole proprietorship business.

Journal Entries

1. Cash received from the owner as capital - Debit Cash, Credit Capital
2. Purchased goods on credit - Debit Purchases, Credit Accounts Payable
3. Sold goods on credit - Debit Accounts Receivable, Credit Sales
4. Cash sales - Debit Cash, Credit Sales
5. Paid rent - Debit Rent Expense, Credit Cash
6. Paid salaries - Debit Salaries Expense, Credit Cash
7. Received cash from debtors - Debit Cash, Credit Accounts Receivable
8. Purchased machinery on credit - Debit Machinery, Credit Accounts Payable
9. Depreciation of machinery - Debit Depreciation Expense, Credit Accumulated Depreciation
10. Paid insurance premium - Debit Insurance Expense, Credit Cash
11. Interest received - Debit Cash, Credit Interest Income
12. Cash withdrawn by the owner - Debit Capital, Credit Cash
13. Goods returned by the customer - Debit Sales Returns, Credit Accounts Receivable
14. Received goods returned to the supplier - Debit Accounts Payable, Credit Purchases Returns
15. Discount allowed to the customer - Debit Sales Discount, Credit Accounts Receivable
16. Discount received from the supplier - Debit Accounts Payable, Credit Purchase Discount
17. Bank loan taken - Debit Cash, Credit Bank Loan
18. Repayment of bank loan - Debit Bank Loan, Credit Cash
19. Purchase of office supplies on credit - Debit Office Supplies, Credit Accounts Payable
20. Use of office supplies - Debit Office Supplies Expense, Credit Office Supplies
21. Cash paid to a creditor - Debit Accounts Payable, Credit Cash
22. Cash received from a debtor after discount - Debit Cash, Credit Accounts Receivable, Credit Sales Discount
23. Purchase of a vehicle on credit - Debit Vehicle, Credit Accounts Payable
24. Paid repairs and maintenance expenses - Debit Repairs and Maintenance Expense, Credit Cash
25. Cash received from interest on bank deposit - Debit Cash, Credit Interest Income
26. Payment of income tax - Debit Income Tax Expense, Credit Cash
27. Purchase of land on credit - Debit Land, Credit Accounts Payable
28. Sale of old machinery for cash - Debit Cash, Credit Machinery
29. Paid telephone expenses - Debit Telephone Expense, Credit Cash
30. Cash received from the sale of an asset - Debit Cash, Credit Asset

Ledger Accounts

1. Cash Account
2. Capital Account
3. Accounts Payable Account
4. Purchases Account
5. Sales Account
6. Accounts Receivable Account
7. Rent Expense Account
8. Salaries Expense Account
9. Machinery Account
10. Depreciation Expense Account
11. Accumulated Depreciation Account
12. Insurance Expense Account
13. Interest Income Account
14. Sales Returns Account
15. Purchase Returns Account
16. Sales Discount Account
17. Purchase Discount Account
18. Bank Loan Account
19. Office Supplies Account
20. Office Supplies Expense Account
21. Repairs and Maintenance Expense Account

Collect information from sole proprietorship about15 business transactions and pass journal entry and post them to the ledgers and balance it