Basic Ledger Accounts - 1

Which 2 accounts would be used for this transaction - Started in business with £1,600 cash

• Equity

• Cash

• Bank

• Cash and Cash Equivalents

Which 2 accounts would be used for this transaction - bought fixtures for £350 paying by cheque

• Office Equipment

• Fixtures and Fittings

• Cash and Cash Equivalents

• Bank

Which 2 accounts would be used for this transaction - Janice gets a loan from the bank for £3,000

• Bank

• Bank Loan

• Equity

• Cash and Cash Equivalents

Which 2 accounts would be used for this transaction - put £500 more into the business by cheque

• Business account

• Bank

• Equity

• Cash and Cash Equivalents

Which 2 accounts would be used for this transaction - Janice started in business with a car worth £15,000

• Cash and Cash Equivalents

• Motor Vehicles

• Equity

• Bank

For every Dr there must be a corresponding

Equity is always entered on the ... side

This is always prepared at the end of a question in order to check the accuracy of your ledger accounts

Which 2 accounts would be used for this transaction - paid electrician by cheque to fit new spotlights for new shop displays £300

• Bank

• Cash and Cash Equivalents

• Electrician

• Fixtures and Fittings

True or false - when Cash and Cash Equivalents increases you Dr the account?

• True

• False