Accounting – 2.1 The double entry system of book-keeping | e-Consult
2.1 The double entry system of book-keeping (1 questions)
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Answer 2
Journal Entry 1 (1st February 2023):
| Account Name | Debit (£) | Credit (£) |
| Cash | 2,000 | |
| Debtors | 2,000 |
Explanation: Cash (an asset) increases, so it is debited. Debtors (an asset) increase, so it is credited.
Journal Entry 2 (10th February 2023):
| Account Name | Debit (£) | Credit (£) |
| Office Supplies | 300 | |
| Cash | 300 |
Explanation: Office Supplies (an expense) increases, so it is debited. Cash (an asset) decreases, so it is credited.
Journal Entry 3 (20th February 2023):
| Account Name | Debit (£) | Credit (£) |
| Cash | 1,500 | |
| Debtors | 1,500 |
Explanation: Cash (an asset) increases, so it is debited. Debtors (an asset) increase, so it is credited.
Journal Entry 4 (25th February 2023):
| Account Name | Debit (£) | Credit (£) |
| Supplier's Due | 500 | |
| Cash | 500 |
Explanation: Supplier's Due (a liability) decreases, so it is debited. Cash (an asset) decreases, so it is credited.