Double entry 2

A business takes out a bank loan and the bookkeeper Debits Bank/Cash and Credits Bank Loan

• True

• False

A business purchases new office equipment, the bookkeeper debits Bank and credits Office Equipment

• True

• False

A business pays wages to staff, the bookkeeper debits wages expense and credits Bank/cash

• True

• False

A business sells to a customer on credit terms, the bookkeeper credits trade receivables and debits revenue

• True

• False

A business pays one of its credit suppliers, the bookkeeper debits accounts payable and credits bank/cash

• True

• False

A business receives money owed by one of its credit customers, the bookkeeper debits cash/bank and credits trade receivables

• True

• False

A business owner puts their own capital into the business to expand it, the bookkeeper debits cash/bank and credits capital

• True

• False

A company pays its electricity bill, the bookkeeper debits bank/cash and credits electricity expenses.

• True

• False

A company pays for a cleaner to clean the offices, the bookkeeper debits general expenditure and credits bank/cash

• True

• False

A business makes sales for cash, the bookkeeper debits bank/cash and credits revenue

• True

• False