Double Entry Flashcards
Contribution by owner.
Eg Owner contributed Bank $500 and furniture $700
Dr Cash at Bank (+) 500
Furniture (+) 700
Cr Capital (+) 1200
Drawings of assets by owner for own used.
Eg owner draws of motor vehicles $5000 for own use
Dr Drawings(+) 5000 Cr Motor vehicles (-) 5000
Drawings of goods by owner.
Eg. Drawings of goods $40 by owner for own use
Dr Drawings(+) 40 Cr Inventory(-) 40
Business bought assets by cash/cheque
Eg Business bought motor vehicles $2000 by cheque
Dr Motor Vehicles(+) 2000
Cr Cash at bank(-) 2000
Business bought assets on credit.
Eg Business bought motor vehicles $2000 on credit
Dr Motor Vehicles (+) 2000
Cr Other Payable (+) 2000
Business bought assets on credit
Eg Business bought motor vehicles $2000 on credit from Breezy Ltd
Dr Motor Vehicles(+) 2000
Cr Other payable, Breezy Ltd(+) 2000
Business bought goods by cash/cheque
Eg Business bought goods $600 for resale by cheque.
Dr Inventory(+) 600 Cr Cash at bank(-) 600
Business bought goods on credit
Eg Business bought goods $600 on credit.
Dr Inventory (+) 600 Cr Trade Payable (+) 600
Business bought goods
Eg Business bought goods $600 on credit from Redhill.
Dr Inventory (+) 600 Cr Trade Payable, Redhill (+) 600
Business return goods that were bought by cash/cheque
Eg Business returned goods worth $120 that was previously purchased by cheque.
Dr Cash at Bank(+) 120 Cr Inventory (-) 120
Bsuinss return goods that were bought on credit.
Eg Business returned goods worth $120.
Dr Trade Payable(-) 120 Cr Inventory (-) 120
Business paid credit supplier $400
Dr Trade Payable(-) 400
Cr Cash at bank (-) 400
Business owed supplier $400. Business paid supplier with cash discount of 10%
Dr Trade Payable(-) 400
Cr Cash at bank(-) 360
Cr Discount received (+) 40
Sold goods by cash/cheque
Eg Business sold goods worth $300 to customer by cheque for $500
Dr Cash at bank (+) 500
Cr Sales Revenue (+) 500
Dr Cost of Sales (+) 300 Cr Inventory(-) 300
Sold goods on credit
Eg Business sold goods worth $400 to customer by on credit for $700
Dr Trade Receivable (+) 700
Cr Sales Revenue (+) 700
Dr Cost of Sales (+) 400 Cr Inventory (-) 400
Customer returned goods that were sold to him by cash/cheque
Eg Cash Customer who bought goods $70 returned the goods to business. The worth of the goods is $50
Dr Sale returns(+) 70
Cr Cash at bank (-) 70
Dr Inventory (+) 50 Cr Cost of Sales (-) 50
Customer returned goods that were sold to him on credit.
Eg Credit Customer who bought goods $260 returned the goods to business. The worth of the goods is $200
Dr Sale returns(+) 260
Cr Trade receivable (-) 260
Dr Inventory(+) 200 Cr Cost of Sales (-) 200
Customer owing $300 paid business.
Dr Cash at Bank (+) 300
Cr Trade Receivable (-) 300
Customer owing $300 paid business with cash discount of 10%.
Dr Cash at Bank(+) 270
Dr Discount allowed(+) 30
Cr Trade Receivable(-) 300
Business obtain a bank loan $3000
Dr Cash at bank(+) 3000
Cr Bank loan(+) 3000
Business repaid the bank loan $2000
Dr Bank loan(+) 2000
Cr Cash at bank(-) 2000
Paid Expenses
Eg Business paid salary $500
Dr Salary(+) 500 Cr Cash at bank(-) 500
Received income
Eg Business received interest $250
Dr Cash at Bank(+) 2500
Cr Interest income(+) 2500
