Exam (elaborations)
4; DOUBLE ENTRY BOOKKEEPING QUESTIONS AND ANSWERS FULLY SOLVED
- Course
- Institution
4; DOUBLE ENTRY BOOKKEEPING
[Show more]
Content preview
4; DOUBLE ENTRY BOOKKEEPINGWho is the inventor of double entry bookkeeping? - answerLuca Pacioli.
When was double entry bookkeeping invented? - answer15th century.
Describe the separate entity concept. - answerThe business is a separate entity to its
owner, meaning if an owner puts capital into the business the business "owes" that
amount to the owner.
Describe the dual effect / duality. - answerEvery transactions affects two accounts,
meaning that for every entry there must be an equal and opposite entry.
What is a debit entry? - answerAn entry into the accounting records that increases an
expense, an asset and drawings, or decreases a liability / income.
What is a credit entry? - answerAn entry into the accounting records that increase a
liability, income and capital, or decreases an asset / expense.
What is the double entry for an owner investing capital into their business? - answerDr
Cash
Cr Capital
What is the double entry for a cash purchase? - answerDr Expense
Cr Cash
What is the double entry for a credit purchase? - answerDr Expense
Cr Payables
What is the double entry for a cash sale? - answerDr Cash
Cr Sales
What is the double entry for a credit sale? - answerDr Receivables
Cr Sales
What is the double entry for settling a liability? - answerDr Payables
Cr Cash
What is the double entry for receipt of cash from a credit customer? - answerDr Cash
Cr Receivables
What is the double entry for topping up petty cash? - answerDr Petty Cash
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Dreamer252. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
62890 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now