DOUBLE ENTRY (3E) PART 4

Owner contributed into business cash at bank.

• DR cash at bank CR capital

• DR capital

  CR cash at bank

Business bought a shelf to be resold. DR ............ CR cash in hand

• DR inventory

• DR fixtures and fittings

Business bought a shelf to be used in business. DR ........... CR cash in hand

• DR inventory

• DR fixtures and fittings

When owner took out goods from the business for his own use. This is called

• Drawings

• Capital

Drawings =

• asset

• expense

• equity

• CONTRA equity

Owner took out cash from the business bank for OWN use. DR ............. CR cash at bank

• Drawings

• Cash in hand

Owner took out cash from the business bank for BUSINESS use. DR ............ CR cash at bank

• Drawings

• Cash in hand

Sales revenue =

• expense

• income

• asset

• equity

Cost of sales =

• income

• expense

• asset

• equity

When goods are sold, the first set of double entry is:

• DR inventory

  CR cost of sales

• DR cost of sales

  CR inventory