Journal Entries Flashcards
Cash contribution from owner
Dr. Cash in Hand
Cr. Capital
Borrow money from bank
Dr. Cash at Bank
Cr. Long-term borrowing
Cash Purchase of goods
Dr. Inventory
Cr. Cash in hand/ Cash at bank
Credit Purchase of goods
Dr. Inventory
Cr. Trade payable
Purchase return of goods bought on credit previously
Dr. Trade payable ( liability decrease)
Cr. Inventory ( asset decrease )
Purchase return of goods bought by cash/cheque previously
Dr. Cash in hand/Cash at bank (asset increase)
Cr. Inventory ( asset decrease)
Payment to trade payable
Dr. Trade payable
Cr. Cash in hand
Cash Sale of goods
Dr. Cash in hand / Cash at bank
Cr. Sales Revenue
( to record income at selling price)
Dr. Cost in Sales ( expense )
Cr . Inventory
( to recognise the cost of the sales at cost price)
Sales returns of goods sold on credit previously
Dr. Sales Returns ( contra-income )
Cr. Trade receivables ( asset decrease )
( at selling price )
Dr. Inventory ( asset increase )
Cr. Cost of Sales ( expense decrease )
( at cost price )
Sales return of goods sold by cash/cheque previously
Dr. Sales Returns ( contra-income )
Cr. Cash in hand/Cash at bank (asset
decrease)
( at selling price )
Dr. Inventory ( asset increase )
Cr. Cost of Sales ( expense decrease )
( at cost price )
Collection on Trade Receivables
Dr. Cash in hand
Cr. Trade Receivable
Cash drawings by owner ( for personal use)
Dr. Drawings
Cr. Cash in hand / Cash at bank
Withdrawal of Stocks/ Inventory by owner
Dr. Drawings
Cr. Inventory
Withdrawal of Inventory to be used as samples for customers
Dr. Advertising Expense
Cr. Inventory
Cash Purchase of non- current assets
eg. Motor vehicles
Dr. Motor Vehicles
Cr. Cash in hand
