Most Common Accounting Entries

This guide shows examples of the most commonly used accounting entries.

📢 Note! If you use sales or purchase invoices in SimplBooks, the program creates the accounting entries automatically. In that case, you do not need to create a separate accounting entry for sales or purchases as described in this guide.

1. A new entry is created in the program under Accounting > Journal Entries > New Entry.

Money leaves the bank account on the credit side and is received on the debit side, meaning purchases are posted to the credit side of the bank account and sales to the debit side. The debit and credit sides of an accounting entry must be equal.

💡 Tip: If needed, you can read more about creating entries in the guide Making an Accounting Entry or watch the video tutorial Making an Accounting Entry.

EXAMPLES

Click on the heading to see the screenshot for that example.

Payment from bank account: Materials and goods for resale. Debit 4000 / Credit 1910
Payment to bank account: Sales. Debit 1910 / Credit e.g. 3000 (VAT 24%), 3001 (14%) or 3002 (10%)
Payment from bank account: YEL (self-employed person's pension insurance). Debit 6100 / Credit 1910
Payment from bank account: Phone expenses. Debit 8500 / Credit 1910
Payment from bank account: Bank charges. Debit 8560 / Credit 1910
Payment from bank account: VAT payment. Debit 2939 / Credit 1910
Payment from bank account: Marketing expenses (e.g. newspaper ads, Facebook ads). Debit 8050 / Credit 1910
Payment from bank account: Software expenses. Debit 7640 / Credit 1910
Payment from bank account: Electricity. Debit 7390 / Credit 1910
Payment from bank account: Fuel expenses. Debit 7530 / Credit 1910
Payment from bank account: Owner's drawings (sole trader, general partnership, limited partnership). Debit 2365 or 2362 / Credit 1910
Payment to bank account: Owner's capital contributions (sole trader, general partnership, limited partnership). Debit 1910 / Credit 2361 or 2362
d

Loan drawdown to bank account. Debit 1910 / Credit 2830 and/or 2630

Account 2830 is used for repayments due during the current financial year; the remainder is posted to account 2630.

Loan repayment from bank account. Debit 2830 / Credit 1910
Payment from bank account: Meeting expenses (e.g. a café receipt from an accounting meeting). Debit 8650 / Credit 1910
Payment from bank account: Entertainment expenses (e.g. a restaurant receipt for client hospitality). Debit 7950 / Credit 1910
Payment from bank account: Training and courses. Debit 7000 / Credit 1910
Other related guides:

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