Page 356 - F3 -FA Integrated Workbook STUDENT 2018-19
P. 356
Chapter 24
Chapter 3
Example 1
Recording transactions using debits and credits
Alexa entered into the following transactions:
1 Introduced $25,000 capital into the new business
2 Paid $2,000 for the rent of a shop
3 Paid $10,000 for the purchase of a new delivery van
4 Purchased goods from a wholesaler, paying cash, at a cost of $2,500
5 Made cash sales to customers totalling $4,000
Required:
State the debit and credit entries required to record each transaction in
the accounting records.
Solution
Debit Credit
1 Cash $25,000 Capital $25,000
2 Rent $2,000 Cash $2,000
3 Delivery van $10,000 Cash $10,000
4 Purchases $2,500 Cash $2,500
5 Cash $4,000 Sales revenue $4,000
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