Chapter 2 • Double-entry bookkeeping

REVIEW QUESTIONS
2.1 For the following transactions state which accounts should be debited, and
which should be
credited.
(a) Equipment bought on credit from M Sparks.
(b) Motor car bought and payment made by cheque.
(c) Owner pays own money into bank account.
(d) Fixtures sold on credit to J Harker.
(e) Cheque sent to A Johnson, a creditor.
(f ) Cash received from P Shortland, a debtor.

2.2 Write up the following transactions in double-entry accounts of J White.

1 March White places £900 of his own money into the cash till for business use.
4 March He places £500 of the cash into a business bank account.
8 March White buys £400 of machinery, paying by cheque.
12 March White buys shop fittings for £200 on credit from M Yeates.
13 March Machinery worth £200 is sold for the same value for cash.
19 March White decided to bring his own computer into the business at a
valuation of £380.

2.3 Record the following transactions for S Vernon’s first month of business
operations.
2009
2 January £25,000 of owner’s money placed into business bank account.
7 January Premises are bought for £15,000, payment made by cheque.
14 January £900 from bank paid into cash till.
17 January Fixtures are purchased for £4,000 on credit from C Platt.
19 January Office supplies bought for cash £500.
23 January Fixtures worth £750 sold for the same amount on credit to D
Hammond.

OCTOBER 21, 2020 REVIEW EXERCISE.

Do not prepare double entry only write accounts to be debited and

credited.(questions 2.4 and 2.5)
2.4 For the following transactions, state the accounts to be debited and credited.
(a) Firm buys inventory and pays immediately by cheque.
(b) Goods returned to the original supplier, A Rahman, due to them being
faulty.
(c) Garage purchases cars for resale on credit from Autocars Ltd.
(d) Greengrocer purchases fruit for cash.
Chapter 2 • Double-entry bookkeeping

(e) Garage sells a recovery vehicle that had been used within the business on
credit to
Rescuecars Ltd.

2.5 For the following transactions state the accounts to be debited and credited.
(a) Goods sold to K Jones on credit are returned due to unsuitability.
(b) Butcher purchases new bacon slicer, paying by cheque.
(c) Baker sends buns back to A Francis, the original supplier, due to them being
stale.
(d) Fast food outlet sells pizzas for cash.
(e) Local shop sells counter on credit to E Polley.

2.6 Draw up the double-entry accounts to record the following transactions

(2.6 and 2.9)

1 Mar Goods bought on credit for $32 from T Burke.

3 Mar Goods bought on credit for $81 from W Randlesome.
9 Mar We return goods to Burke worth $12.
12 Mar We pay Randlesome by cheque for the full $81.
15 Mar We settle our account with Burke by a cash payment of $20.

2.7 Write up the following transactions in the double-entry accounts in the

books of M Cousins for the month of December 2014.
1 Dec Cousins opens a business bank account with $8,000 of his own money.
4 Dec Fixtures and fittings purchased for $2,200 on credit from P Lambert.
11 Dec Goods purchased on credit from K Symons for $85.
13 Dec Goods purchased for $41 – payment made by cheque.
15 Dec Goods sold on credit to G Williams for $95.
17 Dec Goods sold on credit to P Parkinson for $124.
22 Dec Williams returns $23 of goods due to them being faulty.

Chapter 2 • Double-entry bookkeeping

2.8
Write up the following transactions in the double-entry accounts of J Lam for
the month of February 2009.

2 February Lam places £400 of his own money into the cash till.
Chapter 2 • Double-entry bookkeeping

3 February Purchases made on credit for £47 from P Jackson.

5 February Purchases made on credit for £43 from K Sage.
8 February Goods returned to Jackson worth £11.
14 February Sales of good for cash – £102.
17 February Sales of goods on credit for £95 to L Burrell.
21 February Cash paid to Jackson – £36.
24 February Burrell returns goods worth £28.