DEBIT / CREDIT Accounts and Accruals and Prepayments

Question 1

Rent A/C

Answer 1

Debit - Expense

Question 2

Electricity A/C

Answer 2

Debit - Expense

Question 3

Telephone A/C

Answer 3

Debit - Expense

Question 4

Advertising A/C

Answer 4

Debit - Expense

Question 5

Stationary A/C

Answer 5

Debit - Expense

Question 6

Motor Vehicle Expense A/C

Answer 6

Debit - Expense

Question 7

Wages A/C

Answer 7

Debit - Expense

Question 8

Rate A/c

Answer 8

Debit - Expense

Question 9

purchase A/C

Answer 9

Debit - Expense

Question 10

Building A/C

Answer 10

Debit - Asset

Question 11

Land A/c

Answer 11

Debit - Asset

Question 12

Motor Vehicle A/C

Answer 12

Debit - Asset

Question 13

Office Furniture A/C

Answer 13

Debit - Asset

Question 14

Office Equipment A/C

Answer 14

Debit - Asset

Question 15

Machinery A/C

Answer 15

Debit - Asset

Question 16

Customer A/C

Answer 16

Debit - Asset

Question 17

Bank A/C

Answer 17

Debit - Asset

Question 18

Cash A/C

Answer 18

Debit - Asset

Question 19

Money taken from the business for personal use

Answer 19

Debit - Drawings

Question 20

Bank Loan A/C

Answer 20

Credit - Liability

Question 21

Supplier A/C

Answer 21

Credit - Liability

Question 22

Sales A/C

Answer 22

Credit - Income

Question 23

Rent Receivable A/C

Answer 23

Credit - Income

Question 24

Commission Recievable A/C

Answer 24

Credit - Income

Question 25

Discount Recievable A/C

Answer 25

Credit - Income

Question 26

Purchase Returns A/C

Answer 26

Credit - Income

Question 27

Amount Invested by the owner to set up the business

Answer 27

Credit - Capital

Question 28

Expense Prepayment

Answer 28

Asset — Debit Balances — minus from the credit side — overall debit balance.

Trading PnL - minus from less expenses
Balance Sheet - current assets - add to prepayments

Question 29

Income Prepayment

Answer 29

Liability — credit balance — minus from the debit side — overall credit balance

Trading PnL - add income
Balance Sheet - current asset

Question 30

Expense Accrual

Answer 30

Liability — credit balance — add to the credit side — overall credit balance

Trading PnL - add to Less expenses
Balance Sheet - Current Liability Accruals

Question 31

Income Accrual

Answer 31

Asset — debit balance — add to the debit side —- overall debit balance

Trading PnL - add to add income
Balance Sheet - current assets

Question 32

Sales returns a/c

Answer 32

DEBIT