DOUBLE ENTRY (3E) PART 5

ODD one out.

• cash in hand

• cash at bank

• motor vehicle

• capital

ODD one out.

• trade payable

• trade receivable

• office equipment

• fixtures and fittings

ODD one out.

• sales revenue

• cost of sales

• advertising expense

• rental expense

When goods are SOLD

• DR inventory

  CR cost of sales

• DR cost of sales

  CR inventory

When goods are BOUGHT on CREDIT

• DR inventory

  CR trade payable

• DR trade payable

  CR inventory

When goods are SOLD and cash received. DR cost of sales CR inventory

• DR sales revenue

  CR cash in hand

• DR cash in hand

  CR sales revenue

When cash payment is made to a trade payable.

• DR cash in hand

  CR trade payable

• DR trade payable

  CR cash in hand

When cash is received from a trade receivable.

• DR cash in hand

  CR trade receivable

• DR trade receivable

  CR cash in hand

When a loan is taken.

• DR cash at bank

  CR loan

• DR loan

  CR cash at bank

When a loan is REPAID .

• DR cash at bank

  CR loan

• DR loan

  CR cash at bank