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