Double Entry Bookkeeping Flashcards
1
Q
What are the correct entries for selling goods on credit?
A
Debit debtors, credit sales
2
Q
What are the correct entries for paying rates to local councils?
A
Debit rates, credit bank
3
Q
Is the profit and loss account part of the double entry system?
A
Yes, the profit and loss account is part of the double entry system
4
Q
Is the balance sheet part of the double entry system?
A
No, the balance sheet is not part of the double entry system
5
Q
What is the correct entry for an amount owed to a creditor?
A
Debit creditor, credit bank
6
Q
What is the correct entry when a machine is bought for cash?
A
Debit fixed assets, credit bank
