Double entries for Equity (SP)

What is the double entry for recording capital when owner invested his personal assets into the business?

Dr ​ (a)  

Cr ​ (b)  

• Assets
• Capital
• Income Summary
• Drawings

What is the double entry for recording drawings?

Dr ​ (a)  

Cr ​ (b)  

• Drawings
• Assets
• Income Summary
• Capital

What is the double entry for closing drawings to capital?

Dr ​ (a)  

Cr ​ (b)  

• Capital
• Drawings
• Income Summary
• Assets

What is the double entry for closing income summary to capital?

Assume profit for the year.

Dr ​ (a)  

Cr ​ (b)  

• Income Summary
• Capital
• Assets
• Drawings

What is the double entry for closing income summary to capital?

Assume loss for the year.

Dr ​ (a)  

Cr ​ (b)  

• Capital
• Income Summary
• Assets
• Drawings

On which day is capital invested by owner recorded in the journal/ ledger?

• 1st day of the accounting year

• Last day of the accounting year

• On the day which capital is invested

On which day is drawings made by owner recorded in the journal/ ledger?

• 1st day of the accounting year

• Last day of the accounting year

• On the day which drawing is made

On which day is drawings closed to capital?

• 1st day of the accounting year

• Last day of the accounting year

• On the day which drawing is made

On which day is income summary closed to capital?

• 1st day of the accounting year

• Last day of the accounting year

• On the day which drawing is made

• On the day which capital is invested