TT2 IGCSE Accounting equation

Which of the following is incorrect?

• A = L+OE

• L = OE+A

• OE = A-L

• A = OE+L

Indicate which two are correct.

• Assets increase on the debit side

• Assets increase on the credit side

• Assets decrease on the debit side

• Assets decrease on the credit side

Indicate which two are correct.

• Owner's equity increases on the debit side

• Owner's equity increases on the credit side

• Owner's equity decreases on the debit side

• Owner's equity decreases on the credit side

Indicate which two are correct.

• Liabilities increase on the debit side

• Liabilities increase on the credit side

• Liabilities decrease on the debit side

• Liabilities decease on the credit side

Jason introduced capital of $40 000 into the business bank account.

• Debit bank + credit Owner's equity

• Debit owner's equity + credit bank

Purchased premises, $25 000, by cheque.

• Debit bank + credit premises

• Debit premises + credit bank

Purchased goods, $9500, on credit from Lynne.

• Debit purchases + credit Lynne

• Debit Lynne + credit purchases

Cash sales, $320

• Debit sales + credit cash

• Debit cash + credit sales

Jason (owner) took goods ,$100, for own use.

• Debit bank + credit drawings

• Debit purchases + credit drawings

• Debit drawings + credit bank

• Debit drawings + credit purchases

Sold goods, $1460, on credit, to Paul.

• Debit purchases + credit Paul

• Debit Paul + credit purchases