4. Double Entries Flashcards
(22 cards)
Contribution of asset by owner to business.
Eg John contributed $500 cash to business.
Dr Cash in hand 500
Cr Capital 500
Withdrawal of assets by owner for personal use.
Eg owner draws of motor vehicles $5000 for own use
Dr Drawings(+) 5000
Cr Motor vehicles (-) 5000
Withdrawal of assets by owner for own use.
Eg. Drawings of goods $40 by owner for own use
Dr Drawings(+) 40
Cr Inventory(-) 40
Business bought assets by cash/cheque.
Eg Business bought motor vehicles $2000 by cheque.
Dr Motor Vehicles(+) 2000
Cr Cash in hand / Cash at bank(-) 2000
Business bought assets on credit.
Eg Business bought motor vehicles $2000 on credit from John
Dr Motor Vehicles (+) 2000
Cr Trade Payable, John (+) 2000
Business withdraw goods $400 to give customers as free sample
Dr Advertising expenses(+) 400
Cr Inventory(+) 400
Business bought goods by cash/cheque.
Eg Business bought goods $600 for resale by cheque.
Dr Inventory(+) 600
Cr Cash in hand / Cash at bank(-) 600
Business bought goods on credit.
Eg Business bought goods $600 from Peter on credit.
Dr Inventory (+) 600
Cr Trade Payable, Peter (+) 600
Business returned goods worth $120 that was previously purchased by cheque.
Dr Cash at Bank(+) 120
Cr Inventory (-) 120
Business returned goods worth $120 that was previously purchased on credit from John.
Dr Trade Payable, John (-) 120
Cr Inventory (-) 120
Business paid credit supplier, Peter $400
Dr Trade Payable, Peter(-) 400
Cr Cash at bank (-) 400
Business owed supplier, Helen $400, and paid cheque with cash discount of 10%.
Dr Trade Payable, Helen(-) [100%] 400
Cr Cash at bank(-) [90%] 360
Cr Discount received (+) [10%] 40
Sold goods by cash/cheque.
Eg Business sold goods worth $300 to customer by cheque for $500.
Dr Cash at bank (+) 500
Cr Sales Revenue (+) 500
Dr Cost of Sales (+) 300
Cr Inventory(-) 300
Credit sales of goods.
Eg Business sold goods worth $400 to customer, Peter on credit for $700
Dr Trade Receivable, Peter (+) [Selling price] 700
Cr Sales Revenue (+) [selling price] 700
Dr Cost of Sales (+) [cost price] 400
Cr Inventory (-) [cost price] 400
Cash Customer returned goods.
Eg Customer, Peter who bought goods $70 by cash, returned the goods to business. The worth of the goods is $50
Dr Sale returns(+) 70
Cr Cash at bank (-) 70
Dr Inventory (+) 50
Cr Cost of Sales (-) 50
Credit Customer returned goods.
Eg Credit Customer Alan, who bought goods $260 returned the goods to business. The worth of the goods is $200
Dr Sale returns(+) 260
Cr Trade receivable, Alan (-) 260
Dr Inventory(+) 200
Cr Cost of Sales (-) 200
Customer, Jim owing $300 paid business.
Dr Cash at Bank (+) 300
Cr Trade Receivable, Jim (-) 300
Customer, Daniel owing $300 paid business with cash discount of 10%.
Dr Cash at Bank(+) [90%] 270
Dr Discount allowed(+) [10%] 30
Cr Trade Receivable, Daniel (-) [100%] 300
Business obtain a bank loan $3000.
Dr Cash at bank(+) 3000
Cr Bank loan(+) 3000
Business repaid the bank loan $2000.
Dr Bank loan(-) 2000
Cr Cash at bank(-) 2000
Business paid salary $500.
Dr Salary(+) 500
Cr Cash at bank(-) 500
Business received interest $250.
Dr Cash at Bank(+) 250
Cr Interest income(+) 250
