Debit and Credit and T Accounts Flashcards
where do credit sales go
sales day book
where do credit purchases go
purchases day book
where do cash sales go
cash book
where do cash payments go
cash book
where do sales returns go
sales returns day book
where do purchase returns go
purchase returns day book
what side is debit
left
what side is credit
right
form of settlement given
debit or credit
credit
form of settlement received
debit or credit
debit
dead clic
DEBIT
expenses
assets
drawings
CREDIT
liabilities
income
cpital
rules of double entry system
- for each transaction, two entries must be made
- one debit and one credit
- these must be equal
D/C
cash sales
D bank
C sales
D/C
Credit sales
D customer account
C sales account
once they pay:
D bank
C customer account
D/C
cash purcahses
D purchases
C bank
D/C
Credit purchases
D purchases
C supplier account
when paying:
D supplier account
C bank
D/C
acquisition of van by cheque
D van account
C bank
D/C
acquistion of van on credit from van supplier ltd
C van supplier ltd
D van account
D/C
Electricity for Jan paid by cheque
D Electricity
C bank
D/C
Cash introduced into business by JOhn
D cash
C capital
D/C
machine introduced into business by John smith
D machine
C capital
D/C
Cash withdrawn from business by John Smith
D drawings
C cash
closing balance is always
carried down
opening balance is always
brought down
D/C
paid trade supplier T Lake by cheque
D T Lake account
C bank
D/C
Purchased goods for resale from TLake with payment due in 30 days
D purchases account
C T Lake account
D/C
J smith withdraws goods from business for personal use
D Drawings
C purchases
three scenarios for balancing T accounts
- no balance
- entries on only one side of the account
- entries on both sides of the account
