Entries in Accounts (ONLY)

Question 1

Give the relevant entries for a firm paying an electricity bill of £2,000.

Answer 1

• CR entry on cash account; and
• DR entry on firm’s electricity account.

Question 2

Give the relevant entries for a firm receiving £480 from a client in payment of professional charges plus VAT?

Answer 2

• CR entry in client ledger account; and
• DR entry in cash account.

Question 3

Client asks you to hold £20,000 of completion monies for her son buying a flat. How is this entered in the accounts?

Answer 3

• DR in client’s ;Eder account (client section);
• CR entry in son’s ledger account (client section).

Question 4

Give the relevant entry for £10 from petty cash paid on behalf of a client.

Answer 4

DR entry in business section of the client’s account.