Double-entry & the accounting equation

Question 1

Double- entry accounts record:

Answer 1

• money owed on credit by customers
• money owed on credit to suppliers
• income items
• expense items

Question 2

Double- entry accounts can be:

Answer 2

• accounts for types of income/expenses
• accounts for assets
• accounts for liabilities

Question 3

debit

Answer 3

(dr)- left

Question 4

credit

Answer 4

(cr)- right

Question 5

DLCR

Answer 5

Dozy Lions Cannot Run

Question 6

Dual Effect

Answer 6

every transaction makes a change to 2 accounts

Question 7

Bank Account

Answer 7

banks see debit as payment out and credit as payment into account

Question 8

Businesses

Answer 8

businesses see debit as money into account and credit as money out of the account

Question 9

Double- Entry Account Layout (credit)

Answer 9

• date- transaction date
• details- other account such as Insurance Account (will be debit)
• amount column

Question 10

Double- Entry Account Layout (debit)

Answer 10

• date- transaction date
• details- other account such as Bank Account (will be credit)
• amount column

Question 11

Money Into Bank=

Answer 11

debit

Question 12

Money Out Bank=

Answer 12

credit

Question 13

Entries that are always debit:

Answer 13

• purchases (goods bought for selling, materials)
• expenses (running costs, rent, advertising, insurance)
• assets bought (computers vehicles)

Question 14

Entries that are always credit:

Answer 14

• sales (goods sold, services given)
• capital (money paid in from owner)
• loans (from bank/ other sources