Double entry practice

Kayla is in a business of selling yoga mats.

On 2 September 2016, she sold yoga mats worth $1000 on credit. What is the double entry for this transaction?

• Dr Sales Cr Cost of sales

• Dr Trade receivable Cr Sales

• Dr Cash at bank Cr Sales

• Dr Trade payable Cr Sales

On 3 December 2015, Ted bought some goods worth $1200 by cheque with 10% discount.

What is the double entry for this transaction?

• Dr Trade Payable Cr Inventory $1200

• Dr Inventory Cr Trade payable $1080

• Dr Inventory Cr Cash at bank $1200

• Dr Inventory Cr Cash at bank $1080

Sales revenue account is _________ in nature.

A debit to sales revenue account will result in __________ the balance

• credit , decreasing

• debit, decreasing

• debit, increasing

• credit, increasing

What is the double entry to increase allowance for impairment loss of trade receivables?

• Dr Allowance for impairment loss Cr Trade receivable

• Dr Impairment loss on trade receivable Cr Trade receivable

• Dr Impairment loss on trade receivable Cr Allowance for impairment loss

• Dr Trade receivable Cr Impairment loss on trade receivable

At 31 December 2018, $1000 rental income were received for the month of December 2018 and January 2019.

What is the double entry for this adjustment?

• Dr Rental Income Cr Accrued rental income $1000

• Dr Rental Income Cr Prepaid Rental Income $500

• Dr Prepaid Rental Income Cr Rental Income $500

• Dr Cash at bank Cr Rental Income $1000

A business sold some goods on credits for $3500. The cost of the goods are $250.

What is the double-entry/entries for this transaction?

Choose more than 1 if applicable

• Dr Trade receivables Cr Sales revenue $3500

• Dr Inventory Cr Cost of sales $250

• Dr Trade payables Cr Sales revenue $3500

• Dr Cost of sales Cr Inventory $250

Aeryfairy Ltd has an opening balance of $400 for Allowance on impairment loss account on 1 January 2015.

On 31 December 2015, the business estimate $500 to be uncollectible.

What is the double entry for this transaction?

• Dr Impairment loss on Trade Receivable Cr Allowance for impairment loss $500

• Dr Impairment loss on Trade Receivable Cr Allowance for impairment loss $100

• Dr Allowance for impairment loss Cr Trade Receivable $500

• Dr Allowance for impairment loss Cr Impairment loss on Trade receivable $100

TrueSports Ltd has an inventory account with $500 on 31 December 2014.

It is estimated that the net realisable value of the inventory is $350.

What is the double-entry for this adjustment?

• Dr Inventory Cr Cash

• Dr Inventory Cr Impairment loss on inventory

• Dr Trade payable Cr Inventory

• Dr Impairment loss on inventory Cr Inventory