DOUBLE ENTRY PART 2 (3E)

DR = + / CR = - . This applies to

• Asset/ Expenses

• Liabilities/ Income/ Equity

ODD one out.

• cash in hand

• fixtures and fittings

• capital

• office equipment

ODD one out

• advertising expense

• wages and salaries

• printing and stationery

• cash in hand

NOT an income

• sales revenue

• rental expense

• rental income

• service fee revenue

If my CASH IN HAND DEcrease = cash in hand

• DEBIT

• CREDIT

I borrowed $10 000. LOAN

• INcrease

• DEcrease

I borrowed $100. My CASH IN HAND

• DEbit

• CREdit

I am a furniture seller. I bought furniture which is meant to be resold.

• Furniture +

• Inventory +

I bought office equipment which is meant to be used in the office.

• Office equipment +

• Inventory +

I bought inventory and will pay in 1 months time.

• Cash decrease NOW

• Cash NOT AFFECTED NOW