July 1 - Started business with #10,500
July 31- Pa...
July 1 - Started business with #10,500
July 31- Paid Agromachinex #6,000 owing
them
The double entry for July 1 would be
Debit capital and credit cash
Credit cash and debit bank
Debit cash and credit capital
Debit purchases and credit cash
Correct answer is D
Starting a business with 10500 means the business owner must have bought good for resale with that amount of money. Therefore we will debit purchase/stock account and credit cash account
Note; capital (cash in this case) is the money used in started a business
Purchases in accounting are goods bought for resale.
Which of the following is a capital reserve? ...
Stock of finished goods: Jan 1st Dec 31st Stock of Raw materials:...
The effect of transaction when cash is paid into the bank is ...
Responsibility accounting is particularly concerned with ...
Stock or raw materials(1st January) 3000 Direct wages 2500 Direct expenses 1000 Factory overheads...