Remember there are two sides to every transaction. Image credit

Remember there are two sides to every transaction. Image credit

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.


1 JuneCashCapital$12 000
2 JuneBankCash$11 700
5 JuneOffice FurnitureMusorowegomo$1 800
8 JuneVanBank$5 250
12 JuneEquipmentMutape and Sons$2 300
18 JuneMusorowegomoOffice Furniture$120
25 JuneCashEquipment$200
26 JuneMusorowegomoBank$1780
28 JuneCashBank$180
30 JuneBankE 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.