Common Entries Library: Establishment, sales, purchase, and expense entries
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.
- 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.
1) Establishment & Capital Entries
These entries are recorded at the start of the project or when increasing capital.
Case A: Starting capital in cash
Case B: Capital as a mix of Assets
2) Purchase & Asset Entries
These cover buying fixed assets (for use) or inventory (for resale).
Standard Chart of Accounts - Excel File
Case A: Buying Fixed Assets for Cash
Case B: Buying Inventory on Credit (Periodic System)
3) Sales & Revenue Entries
Recording the company’s core activity proceeds.
Case A: Credit Sales to Customers
Case B: Customer Returns (Sales Returns)
4) Expenses & Payment Entries
Regular payments to keep the business running.
Case A: Paying Salaries or Rent
5) Collection & Settlement Entries
Clearing balances between the company and external parties.
Case A: Collecting from a Customer
Case B: Paying a Supplier
6) Logic Flow: Entry Direction (SVG)
7) Professional Summary
To complete your journey in the accounting cycle, see: Difference between Real and Nominal Accounts.