Chapter 4 Double Entry

The business bought goods and paid by cash.

• Dr Cash at bank

  Cr Inventory

• Dr Inventory

  Cr Cash at bank

• Dr Cash in hand

  Cr Inventory

• Dr Inventory

  Cr Cash in hand

The business sold goods for $50 cash.

• Dr Cash in hand

  Cr Sales revenue

• Dr Sales revenue

  Cr Cash in hand

• Dr Cash in hand

  Cr Inventory

• Dr Inventory

  Cr Cash in hand

The cost of goods sold was $10.

• Dr Cost of sales

  Cr Sales revenue

• Dr Cost of sales

  Cr Cash at bank

• Dr Cost of sales

  Cr Inventory

• Dr Inventory

  Cr Cost of sales

The business bought goods from Janice and issued cheque.

• Dr Inventory

  Cr Trade payable Janice

• Dr Inventory

  Cr Trade receivable Janice

• Dr Inventory

  Cr Cash in hand

• Dr Inventory

  Cr Cash at bank

Sold goods on credit to Shin.

Dr _______________;

Cr Sales revenue.

• Trade receivable Shin

• Trade payable Shin

• Cash in hand

• Cash at bank

Bought goods on credit from Teo.

Dr Inventory;

Cr ________________.

• Cash in hand

• Cash at bank

• Trade receivable Teo

• Trade payable Teo

Paid cash to creditor Jane.

• Dr Cash in hand

  Cr Trade receivable Jane

• Dr Trade receivable Jane

  Cr Cash in hand

• Dr Cash in hand

  Cr Trade payable Jane

• Dr Trade payable Jane

  Cr Cash in hand

Received cheque from credit customer Zen.

• Dr Cash at bank

  Cr Trade receivable Zen

• Dr Trade receivable Zen

  Cr Cash at bank

• Dr Cash at bank

  Cr Trade payable Zen

• Dr Trade payable Zen

  Cr Cash at bank

Returned goods to credit supplier Dawn.

• Dr Sales returns

  Cr Inventory

• Dr Trade receivable Dawn

  Cr Cash in hand

• Dr Trade receivable Dawn

  Cr Inventory

• Dr Trade payable Dawn

  Cr Inventory

• Dr Trade payable Dawn

  Cr Cash in hand

Credit customer Ali returned goods that are damaged.

• Dr Sales returns

  Cr Inventory

• Dr Sales returns

  Cr Trade receivable Ali

• Dr Sales returns

  Cr Cash at bank

• Dr Trade payable Dawn

  Cr Inventory

• Dr Trade payable Ali

  Cr Cash at bank