Double Entry Practice

The business owner, Jack invested $9000 into the business bank account.

• Debit Bank and Credit Capital

• Debit Capital and Credit Bank

• Debit Capital and Credit Jack

• Debit Jack and Credit Bank

Took loan from ABC Bank $10,000.

• Dr Loan from ABC Bank

  Cr Cash at Bank

• Dr Cash at Bank

  Cr Loan from ABC Bank

Bought a computer by cash $2500.

• Dr Cash in hand

  Cr Office equipment

• Dr Office equipment

  Cr Cash in hand

Bought photocopier worth $3000 on credit from Computers Ltd.

• Dr Office equipment

  Cr Trade payable - Computers Ltd

• Dr Trade receivable - Computers Ltd

  Cr Computers

• Dr Office equipment

  Cr Cash in bank.

• Dr Inventory

  Cr Office equipment

Bought goods for resale $3000 on credit from Ben.

• Dr Sales revenue

  Cr Trade receivable - Ben

• Dr Purchases

  Cr Ben

• Dr Trade receivable - Ben

  Cr Sales revenue

• Dr Inventory

  Cr Trade payable - Ben

Sold goods worth $2500 to Sally on credit. The cost of the goods sold was $1,300.

• Dr Sales revenue 1300

  Dr Cost of sales 2500

  Cr Inventory 1300

  Cr Trade receivable - Sally 2500

• Dr Inventory 1300

  Dr Cost of sales 2500

  Cr Sales revenue 1300

  Cr Trade receivable - Sally 2500

• Dr Trade receivable - Sally 2500

  Dr Cost of sales 1300

  Cr Sales revenue 2500

  Cr Inventory 1300

• Dr Trade receivable - Sally 2500

  Dr Sales revenue 1300

  Cr Cost of sales 2500

  Cr Inventory 1300

Sally, a customer, returned goods worth $500 due to wrong specifications. The cost of goods was $350.

• Dr Sales returns $500

  Dr Cost of sales $350

  Cr Trade receivable - Sally $500

  Cr Inventory $350

• Dr Sales returns $500

  Dr Inventory $350

  Cr Trade receivable - Sally $500

  Cr Cost of sales $350

• Dr Sales revenue $500

  Dr Inventory $350

  Cr Trade receivable - Sally $500

  Cr Cost of sales $350

• Dr Sales revenue $500

  Dr Trade receivable - Sally $500

  Cr Inventory $350

  Cr Cost of sales $350

Paid the wages for the month $400 by cheque.

• Dr Cash at bank

  Cr Wages expense

• Dr Wages expense

  Cr Cash at bank

Rent received by cheque $500.

• Dr Rent expense

  Cr Cash at bank

• Dr Rent Income

  Cr Cash at Bank

• Dr Cash at bank

  Cr Rent expense

• Dr Cash at bank

  Cr Rent income

Returned goods worth $200 bought on credit to Jem, a supplier.

• Dr Sales returns $200

  Cr Inventory $200

• Dr Inventory $200

  Cr Trade receivable - Jem $200

• Dr Inventory $200

  Cr Trade payable - Jem $200

• Dr Inventory $200

  Cr Sales returns $200