Double Entry

Started a business with $25000 cash

• Debit Cash /Credit Capital

• Credit Capital/Debit Cash

Bought office furniture by cheque $1500

• Credit Bank / Debit Office Furniture

• Debit Office Furniture/Credit Bank

Bought machinery $7500 on credit for Planer Ltd.

• Debit Planer Ltd./ Credit Machinery

• Debit Machinery/ Credit Planer

Bought motor van paying by cheque $6000

• Debit Motor Van/Credit Bank

• Debit Bank/ Credit Motor Van

Paid the amount owing to Planers Ltd $7500 by cheque

• Debit Bank/Credit Planers Ltd.

• Debit Planers Ltd/ Credit Bank

Received $600 cash from J. Walker

• Debit Cash / Credit J. Walker

• Debit J. Walker/Credit Cash

Bought more machinery by cheque $2800

• Debit Bank/Credit Machinery

• Debit Machinery/Credit Bank

Took $500 out of the bank and put it into the cash till.

• Debit Cash/Credit Bank

• Debit Bank/Credit Cash

Sold office machinery for cash

• Debit Cash/Credit Office Machinery

• Debit Office Machinery/Credit Cash

Put 14000 cash into the bank.

• Debit Cash/Credit Bank

• Debit Bank/Credit Cash