Double Entry Concepts

What is the double entry to record a purchase of a computer by cash ?

• Debit cash, credit purchases

• Debit computer, credit bank

• Debit purchases, credit cash

• Debit computer, credit cash

When a sale is made, which accounts are impacted in double entry?

• Sales account and Inventory account

• Cash account and Equity account

• Sales account and Accounts Receivable or Cash account

• Revenue account and Accounts Payable account

Describe the double entry for capital when the owner invests more money into the business.

• Debit Capital, Credit Cash

• Debit Capital, Credit Accounts Payable

• Debit Capital, Credit Revenue

• Debit Cash, Credit Capital

What happens in double entry when a sales return is processed?

• Debit Sales returns, credit trade receivables

• Debit trade receivables, Credit Sales returns

• Debit Sales, credit trade receivables

• Debit trade receivables, Credit Sales

How are purchase returns recorded in double entry?

• Debit Purchase Returns, Credit Accounts Payable

• Debit Inventory, Credit Purchase Returns

• Debit trade receivables, credit purchase returns

• Debit trade Payable, Credit Purchase Returns

Discuss the double entry for recording rent received by cash

• Debit rent received, credit cash

• Debit cash, credit rent received

• Debit rent payable, credit cash

• Debit rent received, credit bank

Explain the double entry for expenses paid by cheque

• Debit expenses, credit cash

• Debit cash, credit expenses.

• Debit bank, credit expenses

• Debit expenses, credit bank

When an owner withdraws cash from the business, what is the double entry?

• Debit cash , Credit drawings

• Debit owner's withdrawal, Credit cash

• Debit drawings, credit cash

• Debit expenses, Credit owner's withdrawal

Describe the double entry for cost incurred to carry goods from the supplier to the business

• Debit carriage outwards, credit cash

• Debit cash, credit carriage outwards

• Debit cash, credit carriage inwards

• Debit carriage inwards, credit cash