Common Journal Entries Library: Establishment, Sales, Purchases, and Expenses
In your daily accounting work, you face dozens of recurring transactions. Speed and accuracy depend on your readiness to handle these transactions. In this article, we provide a Common Journal Entries Library: a ready-made reference including establishment entries, asset purchases, inventory, sales, expenses, and collections. Bookmark this page to use it as a standard guide during recording.
What will you find in this library?
- Establishment Entries: Starting capital in cash, bank, or assets.
- Purchase Entries: Buying assets, inventory (cash/credit), and returns.
- Sales Entries: Cash and credit sales, and customer returns.
- Expense Entries: Salaries, rent, utilities, and bank fees.
- Settlement & Collection: Paying suppliers and collecting from customers.
- Visual Model (SVG) summarizing the logic of entry directions.
Pro Tip: Before using these templates, make sure you understand the Fundamentals of Preparing a Journal Entry to avoid common directing errors.
Table of Contents
1) Establishment & Capital Entries 2) Purchase & Asset Entries 3) Sales & Revenue Entries 4) Expenses & Payment Entries 5) Collection & Settlement Entries 6) Logic Flow Diagram (SVG) 7) Professional Summary
1) Establishment & Capital Entries
These entries are recorded at the start of the project or when increasing capital.
Case A: Starting capital in cash
Dr. Cash/Bank 100,000
Cr. Capital 100,000
Establishing company capital via bank deposit.
Case B: Capital as a mix of Assets
Dr. Cash 20,000
Dr. Equipment 50,000
Dr. Furniture 30,000
Cr. Capital 100,000
Providing capital in the form of cash and fixed assets.
2) Purchase & Asset Entries
These cover buying fixed assets (for use) or inventory (for resale).
Sector COA Library - Ready-to-Use Excel Files
Case A: Buying Fixed Assets for Cash
Dr. Fixed Assets (Cars/Computers) 5,000
Cr. Cash/Bank 5,000
Buying assets for administrative use.
Case B: Buying Inventory on Credit (Periodic System)
Dr. Purchases (Inventory) 8,000
Cr. Suppliers (Accounts Payable) 8,000
Credit purchase of stock from Supplier X.
3) Sales & Revenue Entries
Recording the company's core activity proceeds.
Case A: Credit Sales to Customers
Dr. Customers (Accounts Receivable) 12,000
Cr. Sales Revenue 12,000
Providing service or goods on credit to Customer Y.
Case B: Customer Returns (Sales Returns)
Dr. Sales Returns 500
Cr. Customers (Accounts Receivable) 500
Reducing customer debt due to returned faulty goods.
4) Expenses & Payment Entries
Regular payments to keep the business running.
Case A: Paying Salaries or Rent
Dr. Salaries Expense 4,000
Dr. Rent Expense 2,000
Cr. Cash/Bank 6,000
Payment of monthly operating expenses.
5) Collection & Settlement Entries
Clearing balances between the company and external parties.
Case A: Collecting from a Customer
Dr. Bank/Cash 3,000
Cr. Customers (Accounts Receivable) 3,000
Receiving a payment from Customer Y for a previous invoice.
Case B: Paying a Supplier
Dr. Suppliers (Accounts Payable) 4,500
Cr. Bank/Cash 4,500
Settling a previous debt to Supplier X.
6) Logic Flow: Entry Direction (SVG)
Accounting Entry Direction Logic Naturally DEBIT Increases on (Dr.) Side Assets • Expenses Take / Own / Spend Naturally CREDIT Increases on (Cr.) Side Liabilities • Revenue • Equity Give / Owe / Earn
Mastering the "Nature of Accounts" is the key to recording any entry in this library correctly.
7) Professional Summary
Consistency is the goal: Using standard templates for recurring transactions reduces errors and makes the audit process much smoother. Always ensure that every entry is supported by a physical or digital document (Invoice, Receipt, Contract).
To complete your journey in the accounting cycle, see: Difference between Real and Nominal Accounts.
© Digital Salla Articles — General educational reference. For professional application, consult a certified public accountant.