Further Adjustments To Ledgers Flashcards
1
Q
Repayment of a loan definition?
A
When a business repays an amount borrowed
Debit loan credit bank
2
Q
Loan interest definition
A
The charge a bank will charge for a tye business borrowing it’s money
Debit bank charge (E) credit bank (A)
3
Q
Drawings if cash definition
A
When the owner takes money out for personal use
Drawings Debit bank credit (A)
4
Q
Drawings of inventory definition
A
When the owner takes inventory it for personal use
Debit drawings credit purchases (P)
5
Q
Additional capital introduced
A
When the owner invests more capital into the business.
Debit asset (A) credit Capital (L)
