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
