Double Entry Exercise and Solutions

• 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

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

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