IGCSE Accounting Double entry transactions

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Exercise 1: Business Transactions – identify account to be debited and account to be credited

  1. Mr Dean started business with $ 30 000 in cash
  2. Bought goods on credit from B San $ 2 000.
  3. Sold goods on credit to D Dan $ 5 000.
  4. Sold gods for cash $ 2 000
  5. D Dan returned us goods $ 5 00
  6. Goods returned to B San $ 500
  7. Paid office employees salaries by cheque $ 3 000
  8. Dean  put a further $ 10 000 into business bank account as  additional capital.
  9. Paid cheque $ 1 800 to B San  in full settlement of  his account.
  10. Dean withdrew from business bank account $ 500 for personal use.

Answers

  1. Debit: Cash, and Credit: Capital
  2. Debit: Purchases, and Credit: B San
  3. Debit: D Dan and Credit: Sales
  4. Debit: Cash, and Credit: Sales
  5. Debit: Sales returns and Credit: D Dan
  6. Debit: B San and Credit: Purchases returns
  7. Debit: Salaries and Credit: Bank
  8. Debit: Bank, and Credit: Capital
  9. Debit: A San, and Credit: Bank and Discount received.
  10. Debit: Drawings and Credit: Bank

Exercise 2: Business Transactions – identify account to be debited and account to be credited

  1. Mr David started a business with cash at bank $ 20 000 and office furniture $ 2 000.
  2. Bought goods from Well Shine Traders on credit $ 2 000.
  3. Bought office furniture and paid by cheque $ 3 000
  4. Sold goods for cash $ 8 000.
  5. Sold goods to Sohan Traders on credit $ 10 000
  6. Paid office rent by cheque $ 1 000
  7. Paid wages $ 3 000 by cheque
  8. Cheque received from Sohan Traders for the amount due
  9. Paid a cheque $ 1 800 to Well Shine Traders  in full settlement of  their account.
  10. David withdrew from business bank account $ 800 for personal use.

Answers:

  1. Debit: Bank and Office furniture,  Credit: Capital
  2. Debit: Purchases, and Credit: Well Shine Traders
  3. Debit: Office furniture and Credit: Bank
  4. Debit: Cash, and Credit : Sales
  5. Debit: Sohan Traders and Credit: Sales
  6. Debit: Office rent, and Credit: Bank
  7. Debit: Wages, and Credit: Bank
  8. Debit: Bank, and Credit: Sohan Traders
  9. Debit: Well Shine Traders, and Credit: Bank and Discount received.
  10. Debit: Drawings and Credit: Bank

Exercise 3: Business Transactions – identify account to be debited and account to be credited

  1. Started business with $ 7 000 cash
  2. Bought goods for cash $ 2 000
  3. Bought goods on credit $ 2 000 from M Max
  4. Sold goods for cash $ 4 000
  5. Returned goods to M Max $ 100
  6. Sold goods to C Can on credit $ 3 000
  7. Paid balance due to  M Max by cheque
  8. Bought office furniture $ 2 000 and paid by cheque
  9. Goods bought by cheque $ 6 000
  10. Sold goods to D Dan on credit $ 2 000.

Answers:

  1. Debit : Cash and Credit: Capital
  2. Debit: Purchases and Credit: Cash
  3. Debit:Purcahses and Credit: M Max
  4. Debit: Cash and Credit: Sales
  5. Debit: M Max and Credit:Purcahses returns
  6. Debit: C Can and Credit: Sales
  7. Debit:M Max and Credit: Bank
  8. Debit: Office furniture and Credit: Bank
  9. Debit: Purcahses and Credit: Bank
  10. Debit: D Dan and Credit: Sales

Exercise 4: Business Transactions – identify account to be debited and account to be credited

    1. Started a business with $ 20 000 in the bank.
    2. Bought goods on credit from G Gan $ 2 000
    3. Sold goods for cash $ 10 000 and received cheque.
    4. Goods worth $ 500 returned to G Gan
    5. Settled G Gan ‘s account through bank transfer.
    6. Paid office rent $ 500 and repair charges $ 200 by cheque
    7. Bought office furniture and paid by cheque $ 2 000
    8. Sold goods on credit to C Cross $ 5 000.
    9. C Cross returned us goods $ 1 000
    10. Cheque received from C Cross.

    Answers

    1. Debit: Bank and Credit: Capital
    2. Debit: Purchases and Credit: G Gan
    3. Debit: Bank and Credit: Sales
    4. Debit: Sales returns and Credit: G Gan
    5. Debit: G Gan and Credit: Bank
    6. Debit: Rent and Repairs, and Credit: Bank
    7. Debit: Office Furniture and Credit: Bank
    8. Debit: C Cross and Credit: Sales
    9. Debit:Sales returns and Credit: C Cross
    10. Debit: Bank and Credit: C Cross

Exercise 5: Business Transactions – identify account to be debited and account to be credited

  1. Z Zan started in business  with $ 30 000 in the bank and $ 10 000  cash
  2. Bought  office stationery  by cheque $ 500
  3. Paid insurance by cash $ 300
  4. Goods worth $ 500 returned to S Sak
  5. Bought office computer on credit from JJ  Tech  $ 10 000
  6. Paid general expenses by cheque $ 500
  7. Paid JJ Tech ‘s due by cheque and received  cash discount $ 500
  8. Received cheque from MM Khan $ 2 000.
  9. Paid motor expenses in cash $ 200.
  10. Z Zan withdrew $ 500 from business bank account for personal use.

Answers:

  1. Debit: Bank and Cash and Credit: Capital
  2. Debit: Office stationery, and Credit: Bank
  3. Debit: Insutance and Credit: Cash
  4. Debit: S Sak, and Credit: Purcahses returns
  5. Debit: Office Computers, and  Credit: JJ Tech
  6. Debit: General expenses and Credit: Bank
  7. Debit: JJ Tech, and Credit: Bank and Discount received.
  8. Debit:  Bank and Credit:  MM Khan
  9. Debit: Motor expenses, and Credit: Cash
  10. Debit: Drawings, and Credit: Bank.
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Exercise 6: Business Transactions – identify account to be debited and account to be credited

  1.  Norton started business as a baker by paying $ 3 000 into a business bank account
  2. Paid rent by cheque $ 300
  3. Purchased shop fittings $ 500 paid by cheque
  4. Purchased bakery ingredients and paid by cash $ 600
  5. Sold some bakery items and received cash $ 200
  6. Paid wages $ 200 ( Cash)
  7. Local taxes paid by cheque$ 100
  8. Withdrew $ 600 from bank for personal use
  9. Sold furniture for cash $ 500
  10. Purchased delivery scooter  $  800 from Scooty Mart and the part amount is  paid by  cheque

Answers

  1. Debit: Bank and Credit: Capital
  2. Debit: Rent and Credit : Bank
  3. Debit: Shop fittings and Credit: Bank
  4. Debit: Purcahses and Credit: Cash
  5. Debit: Cash and Credit: Sales
  6. Debit: Wages and Credit: Cash
  7. Debit: Taxes and Credit: Bank
  8. Debit: Drawings and Credit: Bank
  9. Debit: Cash and Credit: Furniture
  10. Debit: Delivery scooter and Credit: Scooty Mart and Bank

Exercise 7: Business Transactions – identify account to be debited and account to be credited

  1. Purchased goods for resale and paid by cheque $ 3 000
  2. Cash sales $ 5 000
  3. Credit sales $ 2 000
  4. Purchased goods on credit from Sohan Traders $ 1 000
  5. Paid staff wages in cash $800
  6. Received cheque from Rohan a customer $ 3,000 and allowed  discount $200
  7. Purchased a new motor van by cheque $ 2 000
  8. Paid motor van repairs by cheque $ 3 00
  9. Paid Trilo Limited $ 2 000 and received cash discount $ 200
  10. Withdrew from bank to pay wages $ 180

Answers

  1. Debit: Purchases and Credit: Bank
  2. Debit: Cash and Credit: Sales
  3. Debit: Debtors and Credit: Sales
  4. Debit: Purchases and Credit: Sohan Traders
  5. Debit: Wages and Credit: Cash
  6. Debit: Bank and Discount allowed and Credit: Rohan
  7. Debit: Motor van and Credit: Bank
  8. Debit: Motor van repairs and Credit: Bank
  9. Debit: Trilo Limited and Credit: Bank and discount receive
  10. Debit: Wages and Credit: Bank
  11. Credit: Bank

Exercise 8: Business Transactions – identify account to be debited and account to be credited

  1. Started business with $ 20 000 cash in the bank
  2. Bought goods on credit from B Brown $ 2 000
  3. Sold goods for cash $ 10 000
  4. Sold goods on credit to P Tan $ 10 000
  5. P Tan returned us goods $ 2 000
  6. Bought goods on credit from G Tag $ 3 000
  7. Goods returned to G Tag $ 200
  8. Paid money owing to G Tag by cheque
  9. Paid H Heather’s account by cash $ 6 800
  10. Good returned to by customer J Jeet $ 800

Answers

  1. Debit: Bank and Credit: Capital
  2. Debit: Purchases and Credit : B Brown
  3. Debit: Cash and Credit: Sales
  4. Debit: P Tan and Credit: Sales
  5. Debit: Sales returns and Credit: P Tan
  6. Debit: Purchases and Credit: G Tag
  7. Debit: G Tag and Credit: Purchases returns
  8. Debit: G Tag and Credit: Bank
  9. Debit: H Heather and Credit: Cash
  10. Debit: Sales returns and Credit: J Jeet

Exercise 9: Business Transactions – identify account to be debited and account to be credited

  1. Started new business with $ 12 000 in the bank
  2. Bought goods on credit from H Hind $ 6 000
  3. Paid H Hind’s account by cheque and received $ 400 discount
  4. Goods bought by cheque $ 2 000
  5. Goods bought for cash $ 200
  6. Bought office furniture for  cash $ 3 700
  7. Good worth $ 700 taken home by the owner for personal use.
  8. Paid managers salaries by cheque $ 6 800
  9. Paid office cleaning expenses $ 300 ( Cash)
  10. Paid cash to D Kat $ 300

Answers

  1. Debit: Bank and Credit: Capital
  2. Debit: Purchases and Credit: H Hind
  3. Debit: H Hind and Credit: Bank and Discount received
  4. Debit: Purchases and Credit: Bank
  5. Debit: Purchases and Credit: Cash
  6. Debit: Office furniture and Credit: Cash
  7. Debit: Drawings and Credit: Purchases
  8. Debit: Salary and Credit: Bank
  9. Debit: Office cleaning expenses and Credit: Cash
  10. Debit: D Kat and Credit: Cash

Exercise 10: Business Transactions – identify account to be debited and account to be credited

  1. Joel pays a cheque into his business account as capital
  2. Purchased some goods for resale and paid by cheque
  3. Paid rent by cheque
  4. Sold some goods and banked all cash
  5. Purchased goods from Noel on credit
  6. Returned goods to Noel for wrong specification
  7. Motor vehicle purchased and paid cheque
  8. Paid weekly wages by cash
  9. Withdrew from bank for personal use
  10. Withdrew from bank for official use

Answers

  1. Debit: Bank and Credit: Capital
  2. Debit: Purchases and Credit: Bank
  3. Debit: Rent and Credit: Bank
  4. Debit: Bank and Credit: Sales
  5. Debit: Purchases and Credit: Noel
  6. Debit: Noel and Credit: Purchases returns
  7. Debit: Motor vehicle and Credit: Bank
  8. Debit: Wages and Credit: Cash
  9. Debit: Drawings and Credit: Bank
  10. Debit: Cash and Credit: Bank
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