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 1
Journal Entry 1 (1st January 2023):
| Account Name | Debit (£) | Credit (£) |
| Equipment | 5,000 | |
| Cash | 5,000 |
Explanation: Equipment (an asset) increases, so it is debited. Cash (an asset) decreases, so it is credited.
Journal Entry 2 (15th January 2023):
| Account Name | Debit (£) | Credit (£) |
| Cash | 6,000 | |
| Revenue | 6,000 |
Explanation: Cash (an asset) increases, so it is debited. Revenue (an income account) increases, so it is credited.