Debits and Credits Flashcards
VAT on sales
Dr Receivables
Cr Sales
Cr VAT
When we receive cash for the credit sale we do not have a VAT entry
VAT on purchases
Dr Purchases
Dr VAT
Cr Payables
When we pay cash for a credit purchase we do not have a VAT entry
Contra
Dr PLCA
Cr RLCA
Dishonoured Cheque
Dr RLCA
Cr Cash
Writing off an IDE
Dr IDE
Cr Receivables
Purchases of inventory
Dr Purchases
Cr Cash/Payables
Sales of inventory
Dr Cash/Receivables
Cr Sales
Sales returns to customers
Cr Cash/Receivables
Dr Sales
Purchase returns to suppliers
Dr Cash/Payables
Cr Purchases
Accounting for closing inventory
Dr inventory (SFP) Cr closing inventory (SPL)
Add an accrual
Dr Expense
Cr Accrual
Add a prepayment
Dr Prepayment
Cr Expense
Add accrued income
Dr Accrued income
Cr Income
Add deferred income
Dr Income
Cr Deferred Income
Receive cash for an allowance
Dr cash
Cr receivable
Write off debt but then it’s recovered
Dr cash
Cr IDE
Issue ordinary shares
Dr Cash
Cr Share Capital
Cr Share Premium
Rights Issue
Offer of new shares to existing shareholders
Bonus issue
Issue of new shares to existing shareholders. The issue if funded from reserves (share premium then retained earnings)
Dr share premium
Cr share capital
Issue of a loan note
Dr cash
Cr NCL
