Double Entry Bookkeeping

Question 1

What are the correct entries for selling goods on credit?

Answer 1

Debit debtors, credit sales

Question 2

What are the correct entries for paying rates to local councils?

Answer 2

Debit rates, credit bank

Question 3

Is the profit and loss account part of the double entry system?

Answer 3

Yes, the profit and loss account is part of the double entry system

Question 4

Is the balance sheet part of the double entry system?

Answer 4

No, the balance sheet is not part of the double entry system

Question 5

What is the correct entry for an amount owed to a creditor?

Answer 5

Debit creditor, credit bank

Question 6

What is the correct entry when a machine is bought for cash?

Answer 6

Debit fixed assets, credit bank