Chapter 2 - Double entry for bank transactions


WORKED EXAMPLE

The following transactions took place in the business of Samiyah during the month of January 2017.




Account to debit

Account to credit

Jan

1

Started business with bank balance $ 13 800




3

Purchased goods by cheque $ 4 200




5

Sold goods and received cheque of $ 5 100




7

Purchased equipment by cheque $1 800




15

Paid wages by cheque $ 1 800




17

Received commission by cheque $ 1 700




20

Purchased goods by cheque $ 4 200




23

Sold goods and received a cheque of $ 5 100




31

Withdrew cash from bank for own use $ 500



 

DR

In the ledger of Samiyah            

CR

Date

Details

Amount

Date

Details

Amount

BANK ACCOUNT























































CAPITAL ACCOUNT



















PURCAHSES ACCOUNT

























REVENUE(SALES) ACCOUNT

























EQUIPMENT ACCOUNT



















WAGES ACCOUNT



















COMMISSION RECEIVABLE ACCOUNT



















DRAWINGS ACCOUNT




















Trial Balance as at 31st January 2017

Title of Account

DR

CR

Bank



Capital



Purchases



Revenue(Sales)



Equipment



Wages



Commission Received



Drawings








 Q1. The following transactions took place during the month of January 2012. 

Jan


1.

4

6

11

16

17

21

26

27

31

Started business with bank balance $ 19 000

Bought goods for cheque $ 4 300

Sold goods for cheque $ 3 600

Bought equipment by cheque $ 4 400.

Paid salaries by cheque $ 1 450

Paid insurance by cheque $ 600

Received interest by cheque $ 700

Withdrew cash from bank for personal use $ 3000

Bought goods by cheque $ 4 800

Sold goods for cheque $ 6 500