Do you know your accounts?

Jessica deposited $1000 cash into the business bank account.

Identfy the 2 accounts.

• Dr Cash at bank

  Cr Capital

• Dr Capital

  Cr Cash at bank

• Dr Asset

  Cr Equity

• Dr Equity

  Cr Asset

The business paid monthly rent of $3500 by cheque. Identify the 2 accounts.

• Dr Cash at bank

  Cr Rent Expense

• Dr Rent Expense

  Cr Cash at Bank

• Dr Cash in hand

  Cr Rent Income

• Dr Rent income

  Cr Cash in hand

The business sold goods at $1700 on credit.

• Dr Inventory

  Cr Cost of sales

• Dr Inventory

  Cr Trade Receivables

• Dr Trade Receivables

  Cr Sales Revenue

• Dr Sales Revenue

  Cr Trade Receivables

The business bought goods of $6000 on credit from Lim Tools.

• Dr Inventory

  Cr Cash at bank

• Dr Inventory

  Cr Trade Receivables-Lim Tools

• Dr Inventory

  Cr Trade Payables-Lim Tools

• Dr Inventory

  Cr Trade Payables

The business returned damaged goods to supplier.

• Dr Inventory

  Cr Trade Payables

• Dr Trade Payables

  Cr Inventory

• Dr Inventory

  Cr Cost of Sales

• Dr Cost of Sales

  Cr Inventory

Customer returned damaged goods bought on credit.

• Dr Sales Returns

  Cr Inventory

• Dr Sales Returns

  Cr Trade Receivables

• Dr Cost of Sales

  Cr Inventory

• Dr Sales Returns

  Cr Cash at bank

Withdrew $500 from the business bank account for personal use.

• Dr Cash at bank

  Cr Drawings

• Dr Drawings

  Cr Cash at bank

• Dr Cash at Bank

  Cr Capital

• Dr Capital

  Cr Cash at bank

Paid $50 cash for maintenance.

• Dr Cash in hand

  Cr Maintenance Expense

• Dr Cash at Bank

  Cr Maintenance Expense

• Dr Maintenance Expense

  Cr Cash in hand

• Dr Maintenance Expense

  Cr Cash at bank