C14: Equities (Only SP)

Transactions that only affect the owner of a business will not be recorded in the books of the business. This is an application of which accounting theory?

• Monetary

• Going concern

• Accounting entity

• Accounting period

Resources contributed by the owner for business use are recorded as ______________.

_____________ are withdrawals by owner from business assets for personal use.

Jess took goods to be given as gift to her friend. What is the double entry?

• Dr Drawings

  Cr Capital

• Dr Drawings

  Cr Goods

• Dr Capital

  Cr Drawings

• Dr Drawings

  Cr Inventory

What is the double entry for the transfer of LOSS from income summary to capital

• Dr Income Summary

  Cr Capital

• Dr Loss

  Cr Capital

• Dr Capital

  Cr Income Summary

• Dr Capital

  Cr Loss

Jess took a personal bank loan and used the proceeds to pay for the business's rental expense. What is the double entry

• Dr Rental expense

  Cr Bank loan

• Dr Rental expense

  Cr Capital

• Dr Bank loan

  Cr Capital

• Dr Capital

  Cr Bank loan

Jess took goods to be given as free sample to her customers. What is the double entry?

• Dr Advertising expense

  Cr Drawings

• Dr Drawings

  Cr Advertising expense

• Dr Drawings

  Cr Inventory

• Dr Advertising expense

  Cr Inventory

The closing/transfer of Drawings to Capital is

Dr Drawings

Cr Capital

True or false?

• True

• False

Interpret the transaction (a) on Dec 15.

• Owner invested $400 of his personal saving into the business.

• Owner issued a cheque of $400 for his personal use.

• Owner withdrew cash $400 from the cash register to pay his son's tutor.

• Owner borrowed $400 from the business.

To close/ transfer the Drawings account to the Capital, is the amount debited or credited in the Drawings account?

• Dr

• Cr