The double entry system of book –keeping

1. A furniture retailer buys tables for cash for use in the main office of the business. Which entry would record this correctly in the accounts?

Account to be debited - Account to be credited

(a) Purchases - Cash

(b) Cash - Purchases

(c) Office furniture- Cash

(d) Cash - Office furniture

• (a)

• (b)

• (c)

• (d)

Machinery bought on credit from Meghwar for resale had to be returned because it was unsuitable. The correct entry to record this in the account would be:

Account to be debited - Account to be credited

(a) Machinery - Meghwar

(b) Meghwar- Purchases returns

(c) Purchases returns- Meghwar

(d) Meghwar - Machinery

• (a)

• (b)

• (c)

• (d)

A sole trader takes equipment out of the business for her own use. The double entry transaction needed to record this would be :

Account to be debited - Account to be credited

(a) Owner’s equity - Equipment

(b) Equipment - Drawings

(c) Equipment - Owner’s equity

(d) Drawings - Equipment

• (a)

• (b)

• (c)

• (d)

• (a) Rs.700 debit

• (b) Rs. 625 credit

• (c) Rs.700 debit

• (d) Rs.625 debit

A business sells goods on credit that are later returned by the customer because they are unsuitable. Which of the following is the correct double entry to record the goods being accepted back to the business?

Debit - Credit

(a) Sales - Trade receivables

(b) Sales returns - Trade payables

(c) Sales returns - Trade receivables

(d) Sales - Trade payables

• (a)

• (b)

• (c)

• (d)

Adale purchase goods on credit from Wei. Which of the following is the correct record of this transaction in the double entry accounts of Wei?

Debit - Credit

(a) Adele - Sales

(b) Wei - Purchases

(c) Purchases - Wei

(d) Sales- Adele

• (a)

• (b)

• (c)

• (d)

A Computer is bought on credit from Poppy to be used in the business’s office. The computer is returned as it doesn’t work. Which of the following is the correct double entry needed to record the transaction in the business’s account?

Debit - Credit

(a) Popp - Purchases returns

(b) Poppy - Computer

(c) Sales return - Poppy

(d) Computer - Poppy

• (a)

• (b)

• (c)

• (d)