Double Entries

Question 1

Opening Inventory

Answer 1

Dr Cos, Cr Inventory

Question 2

Closing Inventory

Answer 2

Dr Inventory, Cr Cos

Question 3

Purchases

Answer 3

Dr Cos, Cr Purchases

Question 4

Drawings

Answer 4

Dr Drawings, Cr Cos

Question 5

Accruals

Answer 5

Dr Expense, Cr Accruals

Question 6

Prepayment

Answer 6

Dr Prepayment, Cr Expense

Question 7

Accrued Income

Answer 7

Dr Accrued income, Cr Revenue

Question 8

Deferred Income

Answer 8

Dr Revenue, Cr Deferred income

Question 9

Accumulated depreciation

Answer 9

Dr Depreciation expense, Cr Accumulated depreciation

Question 10

Impairment

Answer 10

Dr Impairment expense, Cr Asset

Question 11

Disposal: removal of cost of asset

Answer 11

Dr disposal a/c, Cr NCA

Question 12

Disposal: remove acc dep charged so far

Answer 12

Dr acc dep, Cr disposal a/c

Question 13

Disposal: a/c for sales proceeds

Answer 13

Dr cash, Cr disposal a/c

Question 14

Disposal: part exchange allowance offered against cost of replacement asset

Answer 14

Dr new asset cost. Cr disposal a/c

if relevant, remaining cash paid
Dr new asset cost, Cr cash

Question 15

Intangible asset

Answer 15

Dr NCA, Cr cash/payable

Question 16

Expected settlement discount

Answer 16

Dr Receivables (price after discount), Cr Sales (price after discount)

Question 17

Unexpected settlement discount

Answer 17

Dr Receivables (full price), Cr Sales (full price)

Question 18

VAT purchase

Answer 18

Dr purchase, Dr VAT, Cr trade payable

Question 19

Irrecoverable VAT

Answer 19

Dr expense, Cr cash

Question 20

writing off

Answer 20

Dr Irrec debt expense, Cr trade receivable

Question 21

written off but unexpectedly paid

Answer 21

Dr cash, Cr irrec debt exp

Question 22

cheque received

Answer 22

Dr cash, Cr trade receivable

Question 23

cheque dishonoured

Answer 23

Dr trade receivable, Cr cash

Question 24

allowance

Answer 24

Dr irrec debt expense, Cr allowance

Question 25

increase in change in allowance

Answer 25

Dr Irrec debt exp, Cr allowance

Question 26

Decrease in change in allowance

Answer 26

Dr allowance, Cr irrec debt expense

Question 27

allowance last year, paid this year

Answer 27

Dr cash, Cr trade receivable

Question 28

allowance last year, irrecoverable this year

Answer 28

Dr irrec debt expense, Cr trade receivable

Question 29

contra entry

Answer 29

Dr trade payable, Cr trade receivable

Question 30

create suspense account

Answer 30

Dr cash, Cr suspense a/c

Question 31

remove suspense a/c

Answer 31

Dr suspense a/c, Cr trade receivable

Question 32

share capital (issued at nominal value)

Answer 32

Dr cash, Cr share capital

Question 33

share issued at premium

Answer 33

Dr cash, Cr share capital, Cr share premium (excess OVER nominal value)

Question 34

nominal value of bonus shares

Answer 34

Dr revenue account, Cr share capital

Question 35

dividends paid

Answer 35

Dr retained earnings, Cr cash

Question 36

Dividends declared but not paid

Answer 36

Dr retained earnings, Cr dividends payable

Question 37

provision: create provision

Answer 37

Dr expense, Cr provision

Question 38

provision: incur expense

Answer 38

Dr expense, Dr provision, Cr cash

Question 39

Provision: remove excess provision

Answer 39

Dr provision, Cr expense

Question 40

tax liability identified

Answer 40

Dr tax expense, Cr tax payable

Question 41

tax paid

Answer 41

Dr tax payable, Cr cash