3985010
Description
Flashcards by Kieran Howell, updated more than 1 year ago
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Created by Kieran Howell
over 8 years ago
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| Question | Answer |
| Journal Entries | A business buying and selling magic wands |
| Opened a business bank account with £10,000 | Dr Bank £10,000 Cr Capital £10,000 |
| Bought a small shop premises for £15,000, also taking out a £10,000 loan at the same time | Dr Premises £15,000 Cr Bank £10,000 Dr Bank £10,000 Cr Loan £10,000 |
| Bought 2000 magic wands for £2 each | Dr Purchases £4,000 Cr Bank £4,000 |
| Sold 1000 wands for £4 each | Dr Bank £4,000 Cr Sales £4,000 |
| Bought 1000 wands on credit for £3 each to Paul Daniels | Dr Purchases £3,000 Cr Trade Payables - P. Daniels £3,000 |
| Sold 1000 wands on credit to David Blaine for £4,500 | Dr Trade Receivables - D. Blaine £4,500 Cr Sales £4,500 |
| Purchased a car for his son out of the business bank account costing £3,000 | Dr Drawings £3,000 Cr Bank £3,000 |
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