Year 11 Accounting: Debit and Credit Recap

What nature does an asset account have?

• Debit

• Credit

What nature does an expense account have?

• Debit

• Credit

What nature does a liability account have?

• Debit

• Credit

What nature does a revenue account have?

• Debit

• Credit

What nature does an owner's equity account have?

• Debit

• Credit

Transaction: A business purchases a car for cash, what would the debit entry be? (assume no GST)

(a)  

Transaction: A business purchases a car for cash, what would the credit entry be? (assume no GST)

(a)  

Transaction: A business purchases a car for cash. If GST was applicable, would the GST be a debit or a credit?

• Debit

• Credit

What would the journal entry be for the following transaction:

The owner withdrew $11,000 cash from the business

• Dr Drawings $10,000

  Dr GST $1,000

  Cr CAB $11,000

• Dr CAB $11,000

  Cr Drawings $10,000

  Cr GST $1,000

• Dr Cash at Bank

  Cr Drawings

• Dr Drawings

  Cr Cash at Bank

What would the journal entry be for the following transaction:

$660 Registration for the motor vehicle was paid.

• Dr Motor Vehicle expenses $600
  Dr GST $60

  Cr CAB

• Dr CAB

  Cr Motor Vehicle expenses $600
  Cr GST $60

• Dr Cash at Bank

  Cr Motor vehicle expenses

• Dr Motor vehicle expenses

  Cr Cash at Bank