3. Double entries Flashcards
State the double entry rule
For every debit entry, there must be a credit entry.
The total debit amount must equal to the total credit amount.
Give the double entries:
Owner contributed cash $5 000 into the business bank account.
Dr Cash at Bank $5 000
Cr Capital $5 000
Give the double entries:
Owner took inventory $3000 for own use.
Dr Drawings $3 000
Cr Inventory $3 000
Give the double entries:
Business bought inventory on credit from Richmond
$5 200.
Dr Inventory $5 200
Cr Trade payable Richmond $5 200
Give the double entries:
Business returned inventory $200 to Cindy.
Dr Trade payable Cindy $200
Cr Inventory $200
Give the double entries:
Business bought equipment $6 000 on credit from Equip Co.
Dr Equipment $6 000
Cr Other payable Equip Co $6 000
Give the double entries:
Business sold goods costing $500 for cash $700.
Dr Cost of Sales $500
Cr Inventory $500
Dr Cash in hand $700
Cr Sales revenue $700
Give the double entries:
Sold goods $620 on credit to Eric for $800
Dr Cost of Sales $620
Cr Inventory $620
Dr Trade receivable $800
Cr Sales revenue $800
Give the double entries:
Sold goods costing $680 to Willy at a profit of $200
Dr Cost of Sales $680
Cr Inventory $680
Dr Trade receivable Willy $ 880
Cr Sales revenue $880
Give the double entries:
Borrowed a loan of $6000.
Dr Cash at Bank $6 000
Cr Loan $6 000
Give the double entries:
Paid trade payable Wong $600 by cheque
Dr Trade payable Wong $600
Cr Cash at Bank $600
Give the double entries:
Depreciate motor van by $5 800
Dr Depreciation on motor van $5 800
Cr Accumulated depreciation on motor van $5 800
Give the double entries:
Debtor returned goods sold to him at $650. These goods cost $400.
Dr Inventory $400
Cr Cost of Sales $400
Dr Sales returns $650
Cr Trade receivables $650
Give the double entries:
Debtor paid $680 by cheque. This was after a discount of $60.
Dr Cash at Bank $680
Dr Discount allowed $60
Cr Trade receivable $740
Give the double entries:
Write off a debt owed by credit customer Winnie, $340
Dr Allowance for impairment of trade receivables $340
Cr Trade receivable Winnie $340
