Summary of Journal Entries

Summary of Journal Entries (non-exhaustive) Transactions involving the owner 1 Owner contributed assets to the business. Dr Cash at bank / Cash in hand / Inventory / Office equipment / Fixtures and Fittings / Motor vehicle Cr Capital 2 Owner withdrew assets from the business for personal use. Dr Drawings Cr Cash at bank / Cash in hand / Inventory / Office equipment / Fixtures and Fittings / Motor vehicle Transactions involving the bank 3 Business obtained a bank loan. Dr Cash at bank Cr Long-term borrowings 4 Business did a partial repayment of bank loan. Dr Long-term borrowings Cr Cash at bank Transactions involving other income or other expenses 5 Business received money for other income earned. Dr Cash at bank / Cash in hand Cr Rental income / Interest income / Commission income / etc. 6 Business paid money for other expenses incurred. Dr Rental expense / Interest expense / Salary expense / Repair expense / Maintenance expense / etc. Cr Cash at bank / Cash in hand Transactions involving suppliers 7 Business bought non-current assets on credit. Dr Motor vehicle / Office equipment / Fixtures and Fittings Cr Trade payable – Name of supplier 8 Business bought non-current assets and paid by cheque / cash. Dr Motor vehicle / Office equipment / Fixtures and Fittings Cr Cash at bank / Cash in hand 9 Business bought goods on credit. Dr Inventory Cr Trade payable – Name of supplier 10 Business bought goods and paid by cheque / cash Dr Inventory Cr Cash at bank / Cash in hand 11 Business returned goods previously bought on credit. Dr Trade payable – Name of supplier Cr Inventory 12 Business returned goods and was refunded with cheque / in cash. Dr Cash at bank / Cash in hand Cr Inventory

Summary of Journal Entries (non-exhaustive) 13 Business paid credit supplier by cheque / cash to settle amount owed. Dr Trade payable – Name of supplier Cr Cash at bank / Cash in hand Transactions involving customers 14 Business sold goods on credit. Dr Trade receivable – Name of customer Cr Sales revenue Dr Cost of sales Cr Inventory 15 Business sold goods and received cheque / cash. Dr Cash at bank / Cash in hand Cr Sales revenue Dr Cost of sales Cr Inventory 16 Credit customers returned goods to the business. Dr Sales returns Cr Trade receivable – Name of customer Dr Inventory Cr Cost of sales 17 Cash customers returned goods to the business. Dr Sales returns Cr Cash at bank / Cash in hand Dr Inventory Cr Cost of sales 18 Business provided services on credit. Dr Trade receivable – Name of customer Cr Service fee revenue 19 Business provided services and received cheque / cash. Dr Cash at bank / Cash in hand Cr Service fee revenue 20 Business received cheque / cash from credit customer to settle amount owed. Dr Cash at bank / Cash in hand Cr Trade receivable – Name of customer Other transactions 21 Business withdrew cash from the business bank account for business use. Dr Cash in hand Cr Cash at bank 22 Business deposited business cash into the business bank account. Dr Cash at bank Cr Cash in hand SP CP SP CP SP CP SP CP