Basic Journal Entries

Question 1

Cash sales (selling price journal entry)

Answer 1

Dr cash in hand

Cr Sales revenue

Question 2

Cash sales (cost price journal entry)

Answer 2

Dr Cost of sales

Cr Inventory

Question 3

Owner contributed cash into the business.

Answer 3

Dr cash in hand

Cr Capital

Question 4

Owner contributed motor vehicles into the business.

Answer 4

Dr Motor vehicles

Cr Capital

Question 5

Owner withdrew money from the bank for personal use.

Answer 5

Dr Drawings

Cr Cash at bank

Question 6

Owner withdrew cash from the office for own use.

Answer 6

Dr Drawings

Cr Cash in hand

Question 7

Business borrowed money from the bank.

Answer 7

Dr Cash at bank

Cr Bank loan

Question 8

Bought goods for cash.

Answer 8

Dr Inventory

Cr Cash in hand

Question 9

Paid for goods by cheque.

Answer 9

Dr Inventory

Cr Cash at bank

Question 10

Bought goods on credit.

Answer 10

Dr Inventory

Cr Trade payables

Question 11

Returned goods previously bought with cash.

Answer 11

Dr Cash in hand

Cr Inventory

Question 12

Returned goods previously bought on credit.

Answer 12

Dr Trade payables

Cr Inventory

Question 13

Paid trade payables amount owing by cheque.

Answer 13

Dr Trade payables

Cr Cash at bank

Question 14

Received a discount from trade payable for prompt payment.

Answer 14

Dr Trade payables

Cr Discount received

Question 15

Sold goods on credit (selling price journal entry).

Answer 15

Dr Trade receivables

Cr Sales revenue

Question 16

Sold goods on credit (cost price journal entry).

Answer 16

Dr Cost of sales

Cr Inventory

Question 17

Customer returned goods previously sold on credit (selling price journal entry).

Answer 17

Dr Sales returns

Cr Trade receivables

Question 18

Customer returned goods previously sold on credit (cost price journal entry).

Answer 18

Dr Inventory

Cr Cost of sales

Question 19

Received cheque from credit customer.

Answer 19

Dr Cash at bank

Cr Trade receivables

Question 20

Discount was given to credit customer for prompt payment.

Answer 20

Dr Discount allowed

Cr Trade receivables

Question 21

Bought furniture on credit.

Answer 21

Dr Fixtures and fittings

Cr Other payables

Question 22

Bought office equipment by cash.

Answer 22

Dr Office equipment

Cr Cash in hand

Question 23

Paid for rental expense by cash.

Answer 23

Dr Rental expense

Cr Cash in hand

Question 24

Paid employees salaries by cheque.

Answer 24

Dr Salaries expense

Cr Cash at bank

Question 25

Deposited cash from the office into the business bank account.

Answer 25

Dr Cash at bank

Cr Cash in hand

Question 26

Withdrew money from the business bank account for office use.

Answer 26

Dr Cash in hand

Cr Cash at bank

Question 27

Received rental income from tenant by cheque.

Answer 27

Dr Cash at bank

Cr Rental income

Question 28

Received interest on bank deposits.

Answer 28

Dr Cash at bank

Cr Interest income

Question 29

Repaid bank loan by cheque.

Answer 29

Dr Bank loan

Cr Cash at bank

Question 30

Owner withdrew goods for personal use.

Answer 30

Dr Drawings

Cr Inventory