3. Double entry Flashcards
Contribution by owner. Eg Owner contributed Bank $500 and furniture $700
Dr Cash at Bank(+) 500
Dr Fixtures and fittings(+) 700
Cr Capital(+) 1200
Drawings of assets by owner for own used.Eg owner draws of motor vehicles $5000 for own use
Dr Drawings(+) 5000 Cr Motor vehicles (-) 5000
Drawings of goods by owner.Eg. Drawings of goods $40 by owner for own use
Dr Drawings(+) 40 Cr Inventory(-) 40
Business bought assets by cash/chequeEg Business bought motor vehicles $2000 by cheque
Dr Motor Vehicles(+) 2000
Cr Cash at bank(-) 2000
Business bought assets on credit.Eg Business bought motor vehicles $2000 on credit from John.
Dr Motor Vehicles (+) 2000
Cr Trade Payable, John (+) 2000
Business bought assets on credit. Eg Business bought motor vehicles $2000 on credit from Breezy Ltd
Dr Motor Vehicles(+) 2000
Cr Trade payable, Breezy Ltd(+) 2000
Business bought goods by cash/cheque. Eg Business bought goods $600 for resale by cheque.
Dr Inventory(+) 600 Cr Cash at bank(-) 600
Business bought goods on credit. Eg Business bought goods $600 on credit from Peter.
Dr Inventory (+) 600 Cr Trade Payable, Peter (+) 600
Business bought goods on credit. Eg Business bought goods $600 on credit from Redhill.
Dr Inventory (+) 600 Cr Trade Payable, Redhill (+) 600
Business return goods that were bought by cash/cheque. Eg Business returned goods worth $120 that was previously purchased by cheque.
Dr Cash at Bank(+) 120 Cr Inventory (-) 120
Business return goods that were bought on credit. Eg Business returned goods worth $120 that was bought on credit from supplier John.
Dr Trade Payable, John(-) 120 Cr Inventory (-) 120
Business paid credit supplier Mary $400
Dr Trade Payable, Mary(-) 400
Cr Cash at bank (-) 400
Business paid supplier with cash discount. E.g Business owed supplier, John $400. Business paid john by cheque with cash discount of 10%
Dr Trade Payable, John (-) 400 [100%]
Cr Cash at bank(-) 360 [90%]
Cr Discount received (+) 40 [10%]
Sold goods by cash/cheque. Eg Business sold goods worth $300 to customer by cheque for $500
Dr Cash at bank (+) 500
Cr Sales Revenue (+) 500
Dr Cost of Sales (+) 300 Cr Inventory(-) 300
Sold goods on credit. Eg Business sold goods worth $400 to customer, Kelvin on credit for $700
Dr Trade Receivable, Kelvin (+) 700
Cr Sales Revenue (+) 700
Dr Cost of Sales (+) 400 Cr Inventory (-) 400
Customer returned goods that were sold to him by cash/cheque. Eg Cash Customer, Ali who bought goods for $70, returned the goods to business. The worth of the goods is $50
Dr Sale returns(+) 70
Cr Cash at bank (-) 70
Dr Inventory (+) 50 Cr Cost of Sales (-) 50
Customer returned goods that were sold to him on credit. Eg Customer, Helen who bought goods for $260 on credit, returned the goods to business. The worth of the goods is $200
Dr Sale returns(+) 260
Cr Trade receivable, Helen (-) 260
Dr Inventory(+) 200 Cr Cost of Sales (-) 200
Customer, Sally owing $300 paid business.
Dr Cash at Bank (+) 300
Cr Trade Receivable, Sally (-) 300
Customer, Jack, owing $300 paid business with cash discount of 10%.
Dr Cash at Bank(+) 270 [90%]
Dr Discount allowed(+) 30 [10%]
Cr Trade Receivable, Jack (-) 300 [100%]
Business obtain a bank loan $3000
Dr Cash at bank(+) 3000
Cr Bank loan(+) 3000
Business repaid the bank loan $2000
Dr Bank loan(+) 2000
Cr Cash at bank(-) 2000
Paid Expenses. Eg Business paid salary $500
Dr Salary(+) 500 Cr Cash at bank(-) 500
Received income. Eg Business received interest $250
Dr Cash at Bank(+) 2500
Cr Interest income(+) 2500
