Double Entry

Question 1

Contribution by owner.

Eg Owner contributed Bank $500 and furniture $700

Answer 1

Dr Cash at Bank (+) 500
Furniture (+) 700
Cr Capital (+) 1200

Question 2

Drawings of assets by owner for own used.

Eg owner draws of motor vehicles $5000 for own use

Answer 2

Dr   Drawings(+)       5000
Cr       Motor vehicles (-)     5000

Question 3

Drawings of goods by owner.

Eg. Drawings of goods $40 by owner for own use

Answer 3

Dr    Drawings(+)      40
Cr         Inventory(-)      40

Question 4

Business bought assets by cash/cheque

Eg Business bought motor vehicles $2000 by cheque

Answer 4

Dr Motor Vehicles(+) 2000

Cr Cash at bank(-) 2000

Question 5

Business bought assets on credit.

Eg Business bought motor vehicles $2000 on credit

Answer 5

Dr Motor Vehicles (+) 2000

Cr Other Payable (+) 2000

Question 6

Business bought assets on credit

Eg Business bought motor vehicles $2000 on credit from Breezy Ltd

Answer 6

Dr Motor Vehicles(+) 2000

Cr Other payable, Breezy Ltd(+) 2000

Question 7

Business bought goods by cash/cheque

Eg Business bought goods $600 for resale by cheque.

Answer 7

Dr   Inventory(+)              600
Cr        Cash at bank(-)        600

Question 8

Business bought goods on credit

Eg Business bought goods $600 on credit.

Answer 8

Dr   Inventory (+)              600
Cr        Trade Payable (+)       600

Question 9

Business bought goods

Eg Business bought goods $600 on credit from Redhill.

Answer 9

Dr   Inventory (+)                     600
Cr     Trade Payable, Redhill (+)    600

Question 10

Business return goods that were bought by cash/cheque

Eg Business returned goods worth $120 that was previously purchased by cheque.

Answer 10

Dr     Cash at Bank(+)    120
Cr         Inventory (-)         120

Question 11

Bsuinss return goods that were bought on credit.

Eg Business returned goods worth $120.

Answer 11

Dr     Trade Payable(-)    120
Cr           Inventory (-)            120

Question 12

Business paid credit supplier $400

Answer 12

Dr Trade Payable(-) 400

Cr Cash at bank (-) 400

Question 13

Business owed supplier $400. Business paid supplier with cash discount of 10%

Answer 13

Dr Trade Payable(-) 400
Cr Cash at bank(-) 360
Cr Discount received (+) 40

Question 14

Sold goods by cash/cheque

Eg Business sold goods worth $300 to customer by cheque for $500

Answer 14

Dr Cash at bank (+) 500
Cr Sales Revenue (+) 500

Dr     Cost of Sales (+)    300
Cr           Inventory(-)           300

Question 15

Sold goods on credit

Eg Business sold goods worth $400 to customer by on credit for $700

Answer 15

Dr Trade Receivable (+) 700
Cr Sales Revenue (+) 700

Dr     Cost of Sales (+)    400
Cr           Inventory (-)          400

Question 16

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

Answer 16

Dr Sale returns(+) 70
Cr Cash at bank (-) 70

Dr   Inventory (+)            50
Cr      Cost of Sales (-)      50

Question 17

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

Answer 17

Dr Sale returns(+) 260
Cr Trade receivable (-) 260

Dr   Inventory(+)             200
Cr      Cost of Sales (-)       200

Question 18

Customer owing $300 paid business.

Answer 18

Dr Cash at Bank (+) 300

Cr Trade Receivable (-) 300

Question 19

Customer owing $300 paid business with cash discount of 10%.

Answer 19

Dr Cash at Bank(+) 270
Dr Discount allowed(+) 30
Cr Trade Receivable(-) 300

Question 20

Business obtain a bank loan $3000

Answer 20

Dr Cash at bank(+) 3000

Cr Bank loan(+) 3000

Question 21

Business repaid the bank loan $2000

Answer 21

Dr Bank loan(+) 2000

Cr Cash at bank(-) 2000

Question 22

Paid Expenses

Eg Business paid salary $500

Answer 22

Dr    Salary(+)         500
Cr           Cash at bank(-)    500

Question 23

Received income

Eg Business received interest $250

Answer 23

Dr Cash at Bank(+) 2500

Cr Interest income(+) 2500