The Double-Entry System for Assets, Liabilities and Capital

Which of the following statements is correct ?

• To record an increase in any given asset account that account must be debited.

• To record a decrease in capital, the capital account must be credited.

• To record an increase in any given liability account that account must be debited.

• To record a decrease in any given liability account that account must be credited.

Which of the following possible double-entries is correct ?

• Account to Debit - Bank

  Account to Credit - Bank

• Account to Debit - Vehicles

  Account to Credit - Bank

• Account to Debit Account to Credit

  Both of the above.

• Account to Debit Account to Credit

  None of the above.

A school bought a computer, which it intends to use for general administration, and paid for it by cheque. Which of the following double-entries is the correct way to record this transaction ?

• Account to Debit - Computer

  Account to Credit - Bank

• Account to Debit - Bank

  Account to Credit - Computer

• Account to Debit - Cash

  Account to Credit - Computer

• Account to Debit - Computer

  Account to Credit - Cash

If there is a separate ledger account for each debtor and each creditor, which of the following double­ entries is the correct way to record the money received from P. Doyle, a debtor ?

• Account to Debit - P. Doyle

  Account to Credit - Bank

• Account to Debit - Bank

  Account to Credit - P. Doyle

• Account to Debit - Bank

  Account to Credit - Cash

• Account to Debit - Cash

  Account to Credit - P. Doyle

Which of the following double-entries is the correct way to record the entry of new capital into a firm's bank account ?

• Account to Debit - Capital

  Account to Credit - Bank

• Account to Debit - Cash

  Account to Credit - Capital

• Account to Debit - Bank

  Account to Credit - Capital

• Account to Debit - Capital

  Account to Credit - Cash

If there is a separate ledger account for each debtor and each creditor, which of the following double­ entries is the correct way to record a cheque paid to B. Lee, a creditor ?

• Account to Debit - B. Lee

  Account to Credit - Cash

• Account to Debit - Bank

  Account to Credit - B. Lee

• Account to Debit - Cash

  Account to Credit - B. Lee

• Account to Debit - B. Lee

  Account to Credit - Bank