The double entry for a ... is: Flashcards
The double entry for a credit sale including VAT is:
Dr Receivables, Cr VAT, Cr Sales
Why is it Dr Receivables, Cr VAT, Cr Sales?
Receivables is an Asset (DEAD), Sales is an Income (CLIC).
The double entry for a credit purchase including VAT is:
Dr Purchases, Dr VAT, Cr Payables
Why is it Dr Purchases, Dr VAT, Cr Payables?
Purchases is an Expense (DEAD), Payables is a Liability (CLIC).
The double entry for a receipt from a receivable is:
Dr Bank, Cr Receivables
Why is it Dr Bank, Cr Receivables?
Bank is an Asset (DEAD), Receivables is also an Asset but there is a decrease (DEAD).
The double entry for a payment to a payable is:
Dr Payables, Cr Bank.
Why is it Dr Payables, Cr Bank?
Payables is a Liability but there is a decrease (CLIC), Bank is an Asset but there is a decrease (DEAD).
The double entry for a discount allowed to a customer is:
Dr Discounts allowed, Dr VAT, Cr Receivables.
Why is it Dr Discounts allowed, Dr VAT, Cr Receivables?
Discounts allowed is an Expense (DEAD), Receivables is an Asset but there is a decrease (DEAD).
The double entry for a discount received from a supplier is:
Dr Payables, Cr VAT, Cr Discounts received.
Why is it Dr Payables, Cr VAT, Cr Discounts received?
Payables is a Liability but there is a decrease (CLIC), Discounts received is an Income (CLIC).
The double entry for a sales return including VAT is:
Dr Sales returns, Dr VAT, Cr Receivables.
Why is it Dr Sales returns, Dr VAT, Cr Receivables?
Receivables is an Asset but there is a decrease (DEAD).
The double entry for a purchases return including VAT is:
Dr Payables, Cr VAT, Cr Purchases returns.
