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Accounting > Debits and Credits > Flashcards

Flashcards in Debits and Credits Deck (20):
1

VAT on sales

Dr Receivables
Cr Sales
Cr VAT

When we receive cash for the credit sale we do not have a VAT entry

2

VAT on purchases

Dr Purchases
Dr VAT
Cr Payables

When we pay cash for a credit purchase we do not have a VAT entry

3

Contra

Dr PLCA
Cr RLCA

4

Dishonoured Cheque

Dr RLCA
Cr Cash

5

Writing off an IDE

Dr IDE
Cr Receivables

6

Purchases of inventory

Dr Purchases
Cr Cash/Payables

7

Sales of inventory

Dr Cash/Receivables
Cr Sales

8

Sales returns to customers

Cr Cash/Receivables
Dr Sales

9

Purchase returns to suppliers

Dr Cash/Payables
Cr Purchases

10

Accounting for closing inventory

Dr inventory (SFP)
Cr closing inventory (SPL)

11

Add an accrual

Dr Expense
Cr Accrual

12

Add a prepayment

Dr Prepayment
Cr Expense

13

Add accrued income

Dr Accrued income
Cr Income

14

Add deferred income

Dr Income
Cr Deferred Income

15

Receive cash for an allowance

Dr cash
Cr receivable

16

Write off debt but then it’s recovered

Dr cash
Cr IDE

17

Issue ordinary shares

Dr Cash
Cr Share Capital
Cr Share Premium

18

Rights Issue

Offer of new shares to existing shareholders

19

Bonus issue

Issue of new shares to existing shareholders. The issue if funded from reserves (share premium then retained earnings)

Dr share premium
Cr share capital

20

Issue of a loan note

Dr cash
Cr NCL