Journal Entry Flashcards
Learn the jourbals used in weeks 1-6
closing inventory is valued at £6000
DR INVENTORY increase asset 6000
CR COS decrease expense 6000
distribution costs of 2000 should be accrued
DR DISTRI COSTS increase expense by 2000
CR ACCRUALS increase liability by 2000
admin expenses of 3000 have been prepaid
DR PREPAYMENTS increase asset by 3000
CR ADMIN EXPENSES decrease expense by 3000
sales revenue of 8000 earned in the year should be accrued
DR ACCRUED INCOME increase asset by 8000
CR SALES REVENUE increase income by 8000
sales revenue in the trial balance includes an amount of 800 recieved in advance and relates to next year
DR SALES REVENUE decrease income by 800
CR DEFFERED INCOME increase liability by 800
Closing inventory is valued at £4,500.
DR INVENTORY increase asset by 4500
CR COS decrease expense by 4500
Administration expenses of £3,100 should be accrued.
DR ADMIN EXPENSE increase expense by 3100
CR ACCRUALS increase liability by 3100
Distributions costs of £2,000 have been prepaid.
DR PREPAYMENTS increase asset by 2000
CR DISTRIBUTION COSTS decrease expense by 2000
Decrease allowance for recoverable debts
DR ALLOWANCE FOR IRRECOVABLE DEBT increase asset
CR ADMIN EXPENSE decrease expense
An item of PPE acquired in the year costing £5,000 has been omitted.
DR PPE increase asset by 5000
CR Bank decrease asset by 5000
Being Depreciation for the year
DR DIST, ADMIN or COS increase expense
CR PPE ACCUMULATED DEPRECIATION decrease asset
