Double Entry Ledger Account Types

Question 1

Income accounts ?

Answer 1

Sales, rent income etc

Question 2

Expense account

Answer 2

Rent, telephone, electricity etc

Question 3

Cost of sales account

Answer 3

Purchases, inventory, purchase returns, direct wages etc

Question 4

Asset accounts

Answer 4

Plant and machinery, motor vehicle, furniture/equipment, bank, inventory etc

Question 5

Trade receivable accounts

Answer 5

Money owed by customers ( from credit sales)

Question 6

Liability accounts

Answer 6

Bank overdraft, bank loan etc

Question 7

Trade payable accounts

Answer 7

Money owed to suppliers (from credit purchases)

Question 8

Capital accounts

Answer 8

Owners money invested into the business

Question 9

Drawings accounts

Answer 9

Cash and goods taken from the business for owners personal use