Class Activity – May 31, 2020

Double Entry

Each transaction affects TWO accounts, one is debited and the other is credited

Account Increase Decrease

Assets Debit Credit

Liabilities Credit Debit
Capital Credit Debit

Question 1

Accounts Increased by Decreased by

Machinery Debit Credit
Bank Debit Credit
Cash
Debtor, R. Russell Debit Credit
Capital Credit Debit
Loan Credit Debit
Equipment
Creditor, M. Minto Credit Debit
Stock

Question 2

Transactions Account to be Account to be

  Debited Credited
Bought machinery from Singer Limited on credit Machinery Singer Ltd
Sold furniture for cash Cash Furniture
A debtor, C. Blair paid in cash Cash C. Blair
Paid a creditor, T. Lewis by cheque T. Lewis Bank
Received a loan of $1000 in cash from H. Smith Cash H. Smith
Returned machinery to Singer Limited Singer Machinery
Sold motor van on credit to M. Morris Morris Motor van
Repaid H. Smith loan by cheque H. Smith Bank
Cash paid into bank Bank Cash
The owner introduces further capital in cash Cash Capital
Practice Questions

Question 3
Transactions Account to be Account to be
  Debited Credited
Bought motor van paying by cheque    
Sold goods on credit to L. Lucas    
Bought goods on credit from P. Simpson    
Sold fixtures for cash    
Goods returned by L. Lucas    
Bought equipment on credit from Equipco Ltd    
Goods returned to P. Simpson    
Allen paid his account by cheque    
Sold furniture on credit to F. Kelly    
Returned equipment to Equipco Ltd    
Cash sales    
Furniture returned by F. Kelly    
Cash purchases    
Paid G. Fisher by cheque    

Question 4

Transactions Debit Credit

Sept 1 Started business with $50000 in the cash account.

Sept 2 Took $35000 of the opening cash and put it into a

bank account

Sept 5 Bought machinery on credit from JR. Machines

Limited $60000

Sept 10 Sold machinery on credit to $K. Harris $25000

Sept 25 Paid the amount owing to JR Limited by cheque

$30000

Sept 30 Received cash from K. Harris $7000

Work these questions after session 3
Question 5
Prepare the necessary double entry records from the following information, in the books of V.
Strange.
2015
June 1 Started business with 2500 cash
June 2 Deposited $2000 of the opening cash in a bank account of the business
June 5 Bought fixtures on credit from Office Supplies Ltd for $350
June 12 Bought machinery paying by cheque $800
June 18 Returned fixtures costing $50 to Office Supplies Ltd
June 25 Sold fixtures for cash $200
June 26 Paid part of the amount owing to Office Supplies Ltd by cheque $200
June 27 Withdrew cash from bank $150
June 28 Received a loan of $1000 from M. Small by cheque
June 29 Bought motor van paying by cheque $1500
June 30 Paid Office Supplies Ltd the balance of their account in cash $100
Question 6
From the following information, write up the necessary ledger accounts in the books of S. Cross, for
the month of August 2015

Aug 1 Started business with $8000 in the bank and $2000 in cash.
Aug 2 Bought office furniture paying by cheque $1500
Aug 5 Sold office furniture for cash $500
Aug 10 Paid Superior Machines Ltd the amount owing to them by cheque $980
Aug 15 Took $1000 from the cash till and paid it into bank
Aug 18 Bought new office furniture on credit from Antique Ltd $800
Aug 20 Received a loan of $500 in cash from G. Barnes
Aug 25 Returned office furniture costing $200 to Antique Ltd
Aug 28 Paid Antique Ltd in cash $600
Aug 30 Withdrew $200 cash from the bank for business use
Aug 31 The proprietor introduces further capital by cheque $1000