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    Worksheet 1.2 Introducing Double Entry

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    Kenshin Hayashi
    This document provides an introduction to double entry accounting. It includes examples of transactions that would be recorded using double entry accounting. It discusses which accounts would be debited and credited for different types of transactions, such as purchasing goods for resale, paying expenses, and receiving payments from customers. The document also includes a sample bank account for a new business over its first two weeks, showing the relevant transactions that would be recorded in the bank account through debits and credits.

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    Worksheet 1.2 Introducing Double Entry

    Uploaded by

    Kenshin Hayashi
    1K views3 pages
    This document provides an introduction to double entry accounting. It includes examples of transactions that would be recorded using double entry accounting. It discusses which accounts would be debited and credited for different types of transactions, such as purchasing goods for resale, paying expenses, and receiving payments from customers. The document also includes a sample bank account for a new business over its first two weeks, showing the relevant transactions that would be recorded in the bank account through debits and credits.

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    Worksheet 1.2 Introducing double entry

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    This document provides an introduction to double entry accounting. It includes examples of transactions that would be recorded using double entry accounting. It discusses which accounts would be debited and credited for different types of transactions, such as purchasing goods for resale, paying expenses, and receiving payments from customers. The document also includes a sample bank account for a new business over its first two weeks, showing the relevant transactions that would be recorded in the bank account through debits and credits.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    1K views3 pages

    Worksheet 1.2 Introducing Double Entry

    Uploaded by

    Kenshin Hayashi
    This document provides an introduction to double entry accounting. It includes examples of transactions that would be recorded using double entry accounting. It discusses which accounts would be debited and credited for different types of transactions, such as purchasing goods for resale, paying expenses, and receiving payments from customers. The document also includes a sample bank account for a new business over its first two weeks, showing the relevant transactions that would be recorded in the bank account through debits and credits.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Cambridge IGCSE and O Level Accounting

    Worksheet 1.2: Introducing double entry

    1 Insert the missing words in the following sentences.

    In double entry, the account which is receiving or gaining value is


    .................. and the account giving value is ..................

    Goods obtained for resale are ................. to the ................. account. If the
    goods are to be paid for at a later date the account of the supplier is
    .................

    The cost of repairing a motor vehicle would not be recorded in the


    ................. account as it does not ................. the value of the motor vehicle.

    Where commission is both received and paid by a business, the business


    will maintain two commission accounts – a ................. ................. account
    and a .................. .................. account.

    When the owner of a business uses his own money to purchase a


    1
    machine for the business, the .................. account will be debited and the
    .................. account will be credited.

    2 Complete the following table:

    Transaction Account to be Account to be


    debited credited
    The owner introduced $60 000 capital into
    a business bank account
    Paid rent of premises by cheque
    Purchased goods for resale on credit
    from AK Supplies
    Nelson, a credit customer, returned goods
    Purchased office equipment by cheque
    Received a loan from AN Loans which was
    paid into the business bank

    © Cambridge University Press 2018


    Cambridge IGCSE and O Level Accounting

    3 Complete the following table:


    Account debited Account credited Transaction
    Bank Sales Goods sold and the proceeds paid
    into the business bank
    Office expenses Bank
    Rashida Purchases returns
    Bank Commission receivable
    Office equipment Capital
    Bank loan Bank

    4 Sabena started a business on 1 February. The following transactions


    took place in her first two weeks of trading:
    Feb 1 Sabena transferred $60 000 into a business bank account

        4 Paid one month’s rent of premises by cheque, $400

        6 Purchased office equipment, $5000, paying by cheque

        8 Purchased good on credit from Martin, $3100


    2
        9 Paid advertising expenses by cheque, $215

    11 Sold goods, $800, and received cash which was paid into the
    bank immediately

    13 Sabena asked the bank about the possibility of a loan of $10 000
    14 Wilma, a credit customer, returned goods, $60

    a Select the relevant figures and write up the bank account for the two
    weeks ended 14 February.

    Sabena
    Bank account
    Date Details $ Date Details $

    © Cambridge University Press 2018


    Cambridge IGCSE and O Level Accounting

    b List the items you have not included in the bank account and give a
    reason for their omission.

    Item not included in bank account Reason

    c State how much money there was in the bank account at the close of
    business on 14 February.

    $ ............................

    © Cambridge University Press 2018

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