Double entry

Question 1

Contribution by owner.Eg Owner contributed Bank $500 and furniture $700

Answer 1

Dr Cash at Bank (+) 500 Furniture (+) 700Cr 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(+) 5000Cr Motor vehicles (-) 5000

Question 3

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

Answer 3

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

Question 4

Business bought assets by cash/chequeEg Business bought motor vehicles $2000 by cheque

Answer 4

Dr Motor Vehicles(+) 2000Cr Cash at bank(-) 2000

Question 5

Business bought assets on credit.Eg Business bought motor vehicles $2000 on credit

Answer 5

Dr Motor Vehicles (+) 2000Cr Other Payable (+) 2000

Question 6

Business bought assets on creditEg Business bought motor vehicles $2000 on credit from Breezy Ltd

Answer 6

Dr Motor Vehicles(+) 2000Cr Other payable, Breezy Ltd(+) 2000

Question 7

Business bought goods by cash/chequeEg Business bought goods $600 for resale by cheque.

Answer 7

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

Question 8

Business bought goods on creditEg Business bought goods $600 on credit.

Answer 8

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

Question 9

Business bought goodsEg Business bought goods $600 on credit from Redhill.

Answer 9

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

Question 10

Business return goods that were bought by cash/chequeEg Business returned goods worth $120 that was previously purchased by cheque.

Answer 10

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

Question 11

Bsuinss return goods that were bought on credit.Eg Business returned goods worth $120.

Answer 11

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

Question 12

Business paid credit supplier $400

Answer 12

Dr Trade Payable(-) 400Cr Cash at bank (-) 400

Question 13

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

Answer 13

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

Question 14

Sold goods by cash/chequeEg Business sold goods worth $300 to customer by cheque for $500

Answer 14

Dr Cash at bank (+) 500Cr Sales Revenue (+) 500Dr Cost of Sales (+) 300Cr Inventory(-) 300

Question 15

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

Answer 15

Dr Trade Receivable (+) 700Cr Sales Revenue (+) 700Dr Cost of Sales (+) 400Cr Inventory (-) 400

Question 16

Customer returned goods that were sold to him by cash/chequeEg Cash Customer who bought goods $70 returned the goods to business. The worth of the goods is $50

Answer 16

Dr Sale returns(+) 70Cr Cash at bank (-) 70Dr Inventory (+) 50Cr 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(+) 260Cr Trade receivable (-) 260Dr Inventory(+) 200Cr Cost of Sales (-) 200

Question 18

Customer owing $300 paid business.

Answer 18

Dr Cash at Bank (+) 300Cr Trade Receivable (-) 300

Question 19

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

Answer 19

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

Question 20

Business obtain a bank loan $3000

Answer 20

Dr Cash at bank(+) 3000Cr Bank loan(+) 3000

Question 21

Business repaid the bank loan $2000

Answer 21

Dr Bank loan(+) 2000Cr Cash at bank(-) 2000

Question 22

Paid ExpensesEg Business paid salary $500

Answer 22

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

Question 23

Received incomeEg Business received interest $250

Answer 23

Dr Cash at Bank(+) 2500Cr Interest income(+) 2500