Cambrige Notes: Double Entry Exercise and Solutions

ZIMSEC O Level Principles of Accounts: Double Entry Exercise and Solution[/title

• You are required to open the asset and liability and capital accounts and record the following transactions for June 20X8 in the records of T. Moyo. 20X8

1. June 1 Started business with $12,000 in cash.
2. 2 Paid $11 700 of the opening cash into a bank account for the business.
3. 5 Bought office furniture on credit from Musorowegomo Ltd for $1 900.
4. 8 Bought a van paying by cheque $5 250.
5. 12 Bought equipment from Mutape and Sons on credit $2 300.
6. 18 Returned faulty office furniture costing $120 to Dream Ltd.
7. 25 Sold some of the equipment for $200 cash.
8. 26 Paid amount owing to Musorowegomo Ltd $1 780 by cheque.
9. 28 Took $130 out of the bank and added to cash
10. 30 E Makandiwa lent us $4 000 – giving us the money by cheque.

• Always remember the following steps.
• The first step is to identify the accounts involved.
• The second step is to identify the account “Receiving” and therefore is to be debited.
• The third step is to identify the account which is “giving” and therefore is to be credited.
• With practice you can become more proficient and will not need this checklist.

Solution

DATE	ACCOUNT DEBITED	ACCOUNT CREDITED	AMOUNT
1 June	Cash	Capital	$12 000
2 June	Bank	Cash	$11 700
5 June	Office Furniture	Musorowegomo	$1 800
8 June	Van	Bank	$5 250
12 June	Equipment	Mutape and Sons	$2 300
18 June	Musorowegomo	Office Furniture	$120
25 June	Cash	Equipment	$200
26 June	Musorowegomo	Bank	$1780
28 June	Cash	Bank	$180
30 June	Bank	E Makandiwa	$4 000

To revise go back to the notes on Double Entry accounting.

To access more topics to the Principles of Accounts Notes page.

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