This guide is in English for now. The tool itself works in your language.
Cash book › Day book (journal)
Day book (journal): debit and credit in plain words
The day book lists every entry in date order and shows, for each one, which accounts it touches: what is debited and what is credited. It is how an accountant sees the business. You do not have to write it by hand; it is worked out from the bills and payments you already record.
Debit and credit, simply
Every entry touches at least two accounts, and the total debit always equals the total credit. Three plain rules cover most of a shop:
- Cash and bank: debit when money comes in, credit when it goes out.
- A person (customer or supplier): debit when they owe you more, credit when you owe them more or they pay you.
- Sales and income are credited; purchases and expenses are debited.
Everyday entries
| What happened | Debit | Credit |
|---|---|---|
| Cash sale of ₹1,180 (₹1,000 + 18% GST) | Cash 1,180 | Sales 1,000; Output CGST 90; Output SGST 90 |
| Sale on credit to Gill Traders, same amount | Gill Traders 1,180 | Sales 1,000; Output CGST 90; Output SGST 90 |
| Gill Traders pays ₹1,180 by UPI | Bank 1,180 | Gill Traders 1,180 |
| Goods bought on credit from Gupta Steel, ₹5,000 + 18% IGST | Purchases 5,000; Input IGST 900 | Gupta Steel 5,900 |
| Rent ₹18,000 paid by bank transfer | Rent (expense) 18,000 | Bank 18,000 |
| Cash ₹20,000 deposited in the bank | Bank 20,000 | Cash 20,000 |
In the day book each entry shows the debit lines first and the credit lines after them, written "To …". The totals at the bottom of the day book are always equal; if they were not, something would be wrong.
Why it helps
- Your accountant can check the year’s entries quickly, or type them into their own software, from the CSV file.
- GST you collected (output) and GST you can claim (input) are kept as their own accounts, so the GST figures come from the same entries.
- Party balances, the cash book, the bank book and profit all come from these lines, so they always agree with each other.
Reading it here
Open Cash and bank books › Day book and pick the dates. Each entry shows its date, what it was, and the accounts with debit and credit amounts. Use Download CSV (Excel) for your accountant or Print for a paper copy.