Key Principles

Question 1

What is the double entry for a cash sale?

Answer 1

Debit: Cash
Credit: VAT
Credit: Sales

Question 2

What is the double entry for a cash sales return?

Answer 2

Debit: Sales Returns
Debit: VAT
Credit: Cash

Question 3

What is the double entry for a cash purchase?

Answer 3

Debit: Purchases
Debit: VAT
Credit: Cash

Question 4

What is the double entry for a cash purchases return?

Answer 4

Debit: Cash
Credit: Purchase Returns
Credit: VAT

Question 5

What is the double entry for a credit sale?

Answer 5

Debit: Receivables Ledger Control Account
Credit: VAT
Credit: Sales

Question 6

What is the double entry for a credit sales return?

Answer 6

Debit: Sales Returns
Debit: VAT
Credit: Receivables Ledger Control Account

Question 7

What is the double entry for a credit purchase?

Answer 7

Debit: Purchases
Debit: VAT
Credit: Payables Ledger Control Account

Question 8

What is the double entry for a credit purchase return?

Answer 8

Debit: Payables Ledger Control Account
Credit: Purchase Returns
Credit: VAT