DOUBLE ENTRY (3E) PART 3

NOT true.

Double entry =

• ONLY one debit entry and one credit entry

• AT LEAST one debit entry and AT LEAST one credit entry

Advertising EXPENSE INCREASE = ……….. advertising expense

• DEBIT

• CREDIT

CASH at bank DECREASE = ………. cash at bank

• DEBIT

• CREDIT

ODD one out

• salaries

• utilities

• motor vehicle

• rental expense

ODD one out

• capital

• motor vehicle

• fixtures and fittings

• inventory

when inventory is bought on CREDIT.

Inventory +

• cash in hand -

• trade payable +

trade PAYABLE =

• asset

• liability

ODD one out

• loan

• trade payable

• trade receivable

when goods are sold

inventory -

• cost of sales +

• cost of sales -

Sales REVENUE =

• expense

• income