Double Entries Flashcards
1
Q
What is the double entry for recording an increase in the carrying amount of an asset held for sale due to a revaluation of £7,000?
A
Dr Asset Held for Sale £7,000 Cr Revaluation Surplus £7,000
2
Q
What is the double entry for recording a tax refund of £3,000?
A
Dr Bank £3,000 Cr Income Tax Receivable £3,000
3
Q
What is the double entry for the first year under the new depreciation method after changing from straight-line to reducing balance for an asset with a book value of £60,000 and a new rate of 25%?
A
Dr Depreciation Expense £15,000 Cr Accumulated Depreciation £15,000
4
Q
What is the double entry for recording accrued wages of £2,500 at year-end?
A
Dr Wages Expense £2,500 Cr Accrued Wages £2,500
5
Q
What is the double entry for adjusting the prepayment of a subscription service by £300 at year-end?
A
Dr Subscription Expense £300 Cr Prepaid Subscription £300
6
Q
What is the double entry for correcting an error in the cost of sales calculation, reducing it by £1,200?
A
Dr Cost of Goods Sold £1,200 Cr Inventory £1,200
7
Q
What is the double entry for receiving a £3,000 invoice for services rendered, to be paid later?
A
Dr Services Expense £3,000 Cr Accounts Payable £3,000
8
Q
What is the double entry for making a cash withdrawal of £500 from the bank?
A
Dr Cash £500 Cr Bank £500
9
Q
What is the double entry for accruing interest expense of £200 not yet paid?
A
Dr Interest Expense £200 Cr Accrued Interest Payable £200
10
Q
What is the double entry for selling inventory for £2,500 on credit?
A
Dr Accounts Receivable £2,500 Cr Sales Revenue £2,500
11
Q
What is the double entry for reclassifying a deferred tax asset of £1,000 to current tax due to the reversal of temporary differences?
A
Dr Deferred Tax Asset £1,000 Cr Current Tax Expense £1,000
12
Q
What is the double entry for revaluing a building upwards by £10,000?
A
Dr Building £10,000 Cr Revaluation Surplus £10,000
13
Q
What is the double entry for making a £600 cash purchase of raw materials?
A
Dr Raw Materials Inventory £600 Cr Cash £600
14
Q
What is the double entry for recognizing a purchase return of £1,200?
A
Dr Accounts Payable £1,200 Cr Inventory £1,200
15
Q
What is the double entry for paying £2,000 in dividends declared earlier, using bank transfer?
A
Dr Dividends Payable £2,000 Cr Bank £2,000
16
Q
What is the double entry for receiving a £1,000 cash advance from a customer?
A
Dr Cash £1,000 Cr Unearned Revenue £1,000
17
Q
What is the double entry for recording accrued interest income of £500 at year-end?
A
Dr Accrued Interest Income £500 Cr Interest Income £500
18
Q
What is the double entry for paying wages of £4,000 in cash?
A
Dr Wages Expense £4,000 Cr Cash £4,000
19
Q
What is the double entry for adjusting a provision for doubtful debts downwards by £1,000?
A
Dr Allowance for Doubtful Accounts £1,000 Cr Bad Debt Expense £1,000
20
Q
What is the double entry for purchasing £3,000 worth of computer equipment on credit?
A
Dr Computer Equipment £3,000 Cr Accounts Payable £3,000
21
Q
What is the double entry for recording a write-down of inventory by £5,000 due to obsolescence?
A
Dr Inventory Write-Down Expense £5,000 Cr Inventory £5,000
22
Q
What is the double entry for recording a provision for bad debts of £600?
A
Dr Bad Debt Expense £600 Cr Allowance for Doubtful Accounts £600
23
Q
What is the double entry for classifying a piece of land as held for sale with a carrying amount of £100,000 and fair value less costs to sell of £95,000?
A
Dr Asset Held for Sale £95,000 Dr Impairment Loss £5,000 Cr Land £100,000
24
Q
What is the double entry for recording depreciation expense of £1,000?
A
Dr Depreciation Expense £1,000 Cr Accumulated Depreciation £1,000
25
What is the double entry for recognizing accrued salaries of £2,000?
Dr Accrued Salaries £2,000 Cr Cash £2,000
26
What is the double entry for recording annual depreciation using the straight-line method for equipment purchased for £100,000 with a useful life of 10 years and no residual value?
Dr Depreciation Expense £10,000 Cr Accumulated Depreciation £10,000
27
What is the double entry for a customer returning goods worth £200 previously sold on credit?
Dr Sales Returns £200 Cr Accounts Receivable £200
28
What is the double entry for paying interest of £300 in cash?
Dr Interest Expense £300 Cr Cash £300
29
What is the double entry for recording the cost of goods sold using FIFO for inventory purchased 100 units at £10 each and 200 units at £12 each, selling 150 units?
Dr Cost of Goods Sold £1,500 Cr Inventory £1,500
30
What is the double entry for recording an increase in inventory of £5,000 at year-end?
Dr Inventory £5,000 Cr Cost of Goods Sold £5,000
31
What is the double entry for recording the cost of goods sold using LIFO for inventory with 500 units at £15 each, purchasing 300 units at £18 each, and selling 400 units?
Dr Cost of Goods Sold £7,200 Cr Inventory £7,200
32
What is the double entry for selling equipment for £4,000 in cash?
Dr Cash £4,000 Cr Equipment £4,000
33
What is the double entry for paying legal fees of £700 using a bank transfer?
Dr Legal Fees Expense £700 Cr Bank £700
34
What is the double entry for receiving £2,000 in cash from a customer for services rendered?
Dr Cash £2,000 Cr Service Revenue £2,000
35
What is the double entry for recording an inventory shrinkage of £700 identified during a physical count?
Dr Cost of Goods Sold £700 Cr Inventory £700
36
What is the double entry for purchasing insurance for £500, paid by cheque?
Dr Prepaid Insurance £500 Cr Bank £500
37
What is the double entry for selling an asset classified as held for sale for £50,000, which had a carrying amount of £45,000?
Dr Cash £50,000 Cr Asset Held for Sale £45,000 Cr Gain on Sale £5,000
38
What is the double entry for paying £1,000 in rent using a bank transfer?
Dr Rent Expense £1,000 Cr Bank £1,000
39
What is the double entry for writing off a customer’s balance of £2,000 directly to bad debts?
Dr Bad Debt Expense £2,000 Cr Accounts Receivable £2,000
40
What is the double entry for writing off a bad debt of £1,200 previously provided for?
Dr Allowance for Doubtful Accounts £1,200 Cr Accounts Receivable £1,200
41
What is the double entry for recording an increase in the allowance for doubtful accounts by £1,500?
Dr Bad Debt Expense £1,500 Cr Allowance for Doubtful Accounts £1,500
42
What is the double entry for recognizing a deferred tax asset of £2,000 due to tax loss carryforwards?
Dr Deferred Tax Asset £2,000 Cr Income Tax Benefit £2,000
43
What is the double entry for adjusting cost of sales due to an overstatement of purchases by £1,500?
Dr Accounts Payable £1,500 Cr Cost of Goods Sold £1,500
44
What is the double entry for recording the cost of goods sold under the weighted average method with an opening inventory of 50 units at £8 each, purchasing 100 units at £10 each and selling 80 units?
Dr Cost of Goods Sold £800 Cr Inventory £800
45
What is the double entry for transferring an asset from property, plant and equipment to assets held for sale with a carrying amount of £200,000 and fair value less costs to sell of £180,000?
Dr Asset Held for Sale £180,000 Dr Impairment Loss £20,000 Cr Property, Plant and Equipment £200,000
46
What is the double entry for estimating bad debts expense for the year at £2,500?
Dr Bad Debt Expense £2,500 Cr Allowance for Doubtful Accounts £2,500
47
What is the double entry for paying for utilities of £200 in cash?
Dr Utilities Expense £200 Cr Cash £200
48
What is the double entry for recording closing inventory valued at £4,500 at year-end?
Dr Inventory £4,500 Cr Cost of Goods Sold £4,500
49
What is the double entry for converting a £1,000 loan to equity?
Dr Loan Payable £1,000 Cr Share Capital £1,000
50
What is the double entry for recording a prepayment adjustment for a maintenance contract of £600?
Dr Maintenance Expense £600 Cr Prepaid Maintenance £600
51
What is the double entry for purchasing £2,000 worth of office furniture on credit?
Dr Office Furniture £2,000 Cr Accounts Payable £2,000
52
What is the double entry for reversing a previously written-off bad debt of £400 now recovered?
Dr Accounts Receivable £400 Cr Bad Debt Expense £400 (Upon recovery)
Dr Cash £400 Cr Accounts Receivable £400 (Upon collection)
53
What is the double entry for adjusting the opening inventory downwards by £3,000 due to a valuation error?
Dr Retained Earnings £3,000 Cr Inventory £3,000
54
What is the double entry for writing off a bad debt of £400?
Dr Bad Debt Expense £400 Cr Accounts Receivable £400
55
What is the double entry for creating a provision for bad debts of £3,000 at year-end?
Dr Bad Debt Expense £3,000 Cr Allowance for Doubtful Accounts £3,000
56
What is the double entry for issuing £5,000 in bonds at face value?
Dr Cash £5,000 Cr Bonds Payable £5,000
57
What is the double entry for recording a prepayment adjustment for a software license of £700?
Dr Software Expense £700 Cr Prepaid Software £700
58
What is the double entry for adjusting the deferred tax liability downwards by £1,500 due to changes in tax rates?
Dr Deferred Tax Liability £1,500 Cr Income Tax Expense £1,500
59
What is the double entry for recognizing a £1,000 accrual for unpaid wages?
Dr Wages Expense £1,000 Cr Accrued Wages £1,000
60
What is the double entry for making a £400 donation in cash to charity?
Dr Charity Expense £400 Cr Cash £400
61
What is the double entry for reversing a previous inventory write-down of £1,200 when the inventory’s value recovers?
Dr Inventory £1,200 Cr Inventory Write-Down Expense £1,200
62
What is the double entry for purchasing inventory worth £5,000 on credit?
Dr Inventory £5,000 Cr Accounts Payable £5,000
63
What is the double entry for adjusting cost of sales upwards by £2,000 due to supplier price increases?
Dr Cost of Goods Sold £2,000 Cr Accounts Payable £2,000
64
What is the double entry for reclassifying a previously unsellable asset back to property, plant and equipment at its carrying amount of £120,000?
Dr Property, Plant and Equipment £120,000 Cr Asset Held for Sale £120,000
65
What is the double entry for recognizing a prepayment of £1,200 for insurance?
Dr Prepaid Insurance £1,200 Cr Cash £1,200
66
What is the double entry for estimating a deferred tax liability at £5,000 due to temporary differences?
Dr Income Tax Expense £5,000 Cr Deferred Tax Liability £5,000
67
What is the double entry for depreciation at the end of the first half-year for an asset purchased on 1st July for £80,000 with straight-line depreciation over 4 years?
Dr Depreciation Expense £10,000 Cr Accumulated Depreciation £10,000
68
What is the double entry for purchasing office supplies on credit for £500?
Dr Office Supplies £500 Cr Accounts Payable £500
69
What is the double entry for recording a tax credit of £4,000 for research and development?
Dr Income Tax Payable £4,000 Cr Research and Development Income £4,000
70
What is the double entry for recording an accrued expense of £1,800 at year-end for utilities?
Dr Utilities Expense £1,800 Cr Accrued Expenses £1,800
71
What is the double entry for recognizing a provision for inventory obsolescence of £800?
Dr Inventory Obsolescence Expense £800 Cr Allowance for Inventory Obsolescence £800
72
What is the double entry for writing off lost inventory worth £2,000?
Dr Inventory Write-Off Expense £2,000
73
What is the double entry for paying a supplier £800 in cash?
Dr Accounts Payable £800 Cr Cash £800
74
What is the double entry for paying off an accrued salary expense of £2,000 in cash?
Dr Accrued Salaries £2,000 Cr Cash £2,000
75
What is the double entry for paying £1,000 in tax liability using a bank transfer?
Dr Income Tax Payable £1,000 Cr Bank £1,000
76
What is the double entry for recording accumulated depreciation of £30,000 on equipment being disposed of for £10,000?
Dr Accumulated Depreciation £30,000 Cr Equipment £30,000
## Footnote
Also record the disposal separately.
77
What is the double entry for receiving a refund of £200 from a supplier in cash?
Dr Cash £200 Cr Supplies Expense £200
78
What is the double entry for receiving a utility bill of £300 to be paid next month?
Dr Utilities Expense £300 Cr Accounts Payable £300
79
What is the double entry for reclassifying a financial asset as held for sale with a carrying amount of £60,000 and a fair value less costs to sell of £58,000?
Dr Asset Held for Sale £58,000 Dr Impairment Loss £2,000 Cr Financial Asset £60,000
80
What is the double entry for receiving a dividend of £1,500 in cash from an investment?
Dr Cash £1,500 Cr Dividend Income £1,500
81
What is the double entry for purchasing equipment for £5,000 in cash?
Dr Equipment £5,000 Cr Cash £5,000
82
What is the double entry for paying a corporation tax liability of £18,000 using a bank transfer?
Dr Income Tax Payable £18,000 Cr Bank £18,000
83
What is the double entry for issuing a cheque for £1,200 to pay for advertising?
Dr Advertising Expense £1,200 Cr Bank £1,200
84
What is the double entry for reversing a previous year’s accrued expense of £1,200?
Dr Accrued Expenses £1,200 Cr Expense Account £1,200
85
What is the double entry for paying salaries of £3,000 using a bank transfer?
Dr Salaries Expense £3,000 Cr Bank £3,000
86
What is the double entry for declaring and paying dividends of £2,000 in cash?
Dr Retained Earnings £2,000 Cr Cash £2,000
87
What is the double entry for a business revaluing an asset downwards by £15,000 and then recording the next year’s depreciation?
Dr Revaluation Surplus £15,000 Cr Asset £15,000 Dr Depreciation Expense £X Cr Accumulated Depreciation £X
88
What is the double entry for adjusting the prepayment of rent expense by £900 at year-end?
Dr Rent Expense £900 Cr Prepaid Rent £900
89
What is the double entry for transferring £2,000 from the savings account to the checking account?
Dr Checking Account £2,000 Cr Savings Account £2,000
90
What is the double entry for selling an asset held for sale at a loss of £5,000 from its carrying amount of £35,000?
Dr Cash £30,000 Dr Loss on Sale £5,000 Cr Asset Held for Sale £35,000
91
What is the double entry for recording accrued income of £700 not yet received?
Dr Accrued Income £700 Cr Income £700
92
What is the double entry for revaluing an asset held for sale upwards by £5,000, previously written down by £10,000?
Dr Asset Held for Sale £5,000 Cr Reversal of Impairment £5,000
93
What is the double entry for recording a tax penalty of £500 due to late payment?
Dr Tax Penalty Expense £500 Cr Income Tax Payable £500
94
What is the double entry for reversing an over-provision of income tax of £1,200 from the previous year?
Dr Income Tax Payable £1,200 Cr Income Tax Expense £1,200
95
What is the double entry for recording an increase in cost of sales due to damaged goods worth £800?
Dr Cost of Goods Sold £800 Cr Inventory £800
96
What is the double entry for recording an impairment of an asset with a book value of £40,000 impaired by £10,000 and subsequent depreciation?
Dr Impairment Loss £10,000 Cr Accumulated Impairment £10,000 Dr Depreciation Expense (following impairment) £3,000 Cr Accumulated Depreciation £3,000
97
What is the double entry for recording an estimated income tax expense of £25,000 for the year?
Dr Income Tax Expense £25,000 Cr Income Tax Payable £25,000
98
What is the double entry for receiving a £3,000 loan from the bank?
Dr Bank £3,000 Cr Loan Payable £3,000
99
What is the double entry for adjusting a company's inventory at year-end with a net realizable value of £20,000 but a cost of £22,000?
Dr Inventory Write-Down Expense £2,000 Cr Inventory £2,000
100
What is the double entry for an asset held for sale increasing in fair value by £3,000, reversing a previous impairment loss?
Dr Asset Held for Sale £3,000 Cr Reversal of Impairment £3,000
101
What is the double entry for inventory transactions under the perpetual inventory system when purchasing 200 units at £25 each and selling 150 units?
Dr Inventory £5,000 Cr Accounts Payable £5,000 (For the purchase)
Dr Cost of Goods Sold £3,750 Cr Inventory £3,750 (For the sale)
102
What is the double entry for issuing 10,000 shares at £1 each, fully paid in cash?
Dr Bank £10,000 Cr Share Capital £10,000
103
What is the double entry for reclassifying a building as held for sale with a carrying amount of £150,000 and fair value less costs to sell of £140,000?
Dr Asset Held for Sale £140,000 Dr Impairment Loss £10,000 Cr Building £150,000
104
What is the double entry for revising the provision for doubtful debts upwards by £800?
Dr Bad Debt Expense £800 Cr Allowance for Doubtful Accounts £800
105
What is the double entry for purchasing a delivery van on credit for £15,000?
Dr Delivery Van £15,000 Cr Accounts Payable £15,000
106
What is the double entry for recording amortization expense of £600?
Dr Amortization Expense £600 Cr Accumulated Amortization £600
107
What is the double entry for recording a depreciation expense of £5,000 on a fully depreciated asset that is still in use?
Dr Depreciation Expense £5,000 Cr Accumulated Depreciation £5,000
108
What is the double entry for recording annual depreciation after revaluing equipment upwards by £20,000 at the end of year 5?
Dr Depreciation Expense £12,000 Cr Accumulated Depreciation £12,000
109
What is the double entry for collecting £700 on a debt previously written off?
Dr Cash £700 Cr Bad Debt Recovery £700
110
What is the double entry for reversing a previously recorded depreciation expense of £8,000 due to an error?
Dr Accumulated Depreciation £8,000 Cr Depreciation Expense £8,000
111
What is the double entry for receiving £1,200 in cash for consulting services?
Dr Cash £1,200 Cr Consulting Revenue £1,200
112
What is the double entry for recording a sales return of £250 on credit?
Dr Sales Returns £250 Cr Accounts Receivable £250
113
What is the double entry for receiving £500 in cash for the sale of scrap materials?
Dr Cash £500 Cr Scrap Sales Revenue £500
114
What is the double entry for receiving a refund on returned inventory worth £1,500 originally purchased on credit?
Dr Accounts Payable £1,500 Cr Inventory £1,500
115
What is the double entry for repaying £1,500 of a loan using cash?
Dr Loan Payable £1,500 Cr Cash £1,500
116
What is the double entry for recognizing a bad debt expense of £500 for a debt not previously provided for?
Dr Bad Debt Expense £500 Cr Accounts Receivable £500
117
What is the double entry for receiving £1,000 as a grant from the government?
Dr Cash £1,000 Cr Grant Income £1,000
118
What is the double entry for recognizing a purchase discount of £600?
Dr Accounts Payable £600 Cr Cost of Goods Sold £600
119
What is the double entry for recording depreciation at the end of the first year using the reducing balance method at a rate of 20% for equipment costing £50,000?
Dr Depreciation Expense £10,000 Cr Accumulated Depreciation £10,000
120
What is the double entry for paying £100 in bank charges?
Dr Bank Charges £100 Cr Cash £100
121
What is the double entry for receiving rent income of £800 in cash?
Dr Cash £800 Cr Rent Income £800
