Recording Transaction

1. Capital is paid into the bank by the owner?

• Assets increase

• Liabilities increase

2. Goods are purchased on credit terms?

• Assets decrease

• Liabilities increase

3. Goods are purchased for cash?

• Liabilities increase and decrease

• Assets increase and decrease

4. Equipment is sold for cash?

• Assets increase and decrease

• Assets and liabilities increase

5. An accounts payable is settled in cash?

• Liabilities decrease

• Liabilities increase

6. An accounts receivable is settled in cash?

• Liabilities increase and decrease

• Assets increase and decrease

7. The owner takes cash for personal use?

• Equity increases

• Assets decrease

8. A liability of the business is paid by the owner from personal funds?

• Liabilities increase

• Equity increases

9. Equipment is purchased using cash?

• Assets increase and decrease

• Assets and liabilities increase

10. Employee wages are settled in cash?

• Liabilities decrease

• Assets increase